CHINA

Nelson Evening Mail, Volume LIV, Issue LIV, 23 February 1920, Page 5

CHINA

A DEVELOPMENT SCHEME EXPLOITATION OF CONCESSIONS (By Electric Telegraph—Copyright' \Australian & N.Z. Liable Association) LONDON, Feb. 18. The Consortium of international financiers is in process of reorganisation in order to bring it to a common pool and exploit the railway concessions held in China by various European, Japanese, and American financial groups. The disappearance of Germany and the practical removal of Russia from the Chinese sphere renders a rearrangement necessary.

America is; represented in the new Consortium by Mr Thomas Lamont, of J. P. Morgan and Co., France by the Banque de I’ludo-Chine, England by the Hongkong and Shanghai Bank, and Japan by the Yokohama Specie Bank. Mr Lament, represents 37 great financial houses operating from the Atlantic to the Pacific. He leaves San Francisco on the 19th inst. for the East in connection with the scheme.

Mr Odugiri, formerly Japanese Consul-General at Shanghai, and now representing the Yokohama Specie Bank, leaves London on Saturday on a similar mission. There are complications to be overcome, for valuable railway concesionjj are held outside tile Consortium, notably by Mr George Pauling, a British subject, and also by Russia, the disposal of which is uncertain. There are also special interests held by the Banque Industriclle de Chine, controlled by M. Berthelot, the French financier, which is hostile to the French group on the Consortium represented by the Banquo de Fin do-Chine.

in the case of Russia, provision is made for her inclusion in the Consortium when sue possesses a stable Government. In view of this great financial development, a competent authority on Chinese affairs informs the Australian Press Association that theA is a splendid opening for Australasian products. The Consortium will have to finance and construct 9500 miles of railways, for which concessions Have already been granted, but the Construction of which was stopped by the war. This offers a good field for Australasian sleepers and rolling stock. There is also an increasing demahd for meat. Tlie Chinese are becoming more and more meat eaters. Other than pork they use much canned meat. They also need wool, butter and clothing. The authority referred to is of opinion that the British side of the Consortium should take an Imperial character instead of being severely restricted to the English group represented by the Hong Kong and Shanghai Bank, and adds that the Dominions are vitally interested in future markets, and ought to be represented. Australia, for example, should have a voice through the Commonwealth Bank in the Consortium as one of the British group, thus greatly advancing Australian trade interests. At the same time thqf Common-) wealth would gain increased advantages by thp establishment of a direct line of steamers with China instead of allowing the bulk of her trade to filter through Japanese channels. Canada has recently taken steps in the direction of improving her trade with the East. Sir Edward Walker, a prominent Canadian financier, recently returned after investigating the possibilities of the situation.