CONSORTIUM OF. INTERNATIONAL FINANCIERS

Dominion, Volume 13, Issue 127, 23 February 1920, Page 7

CONSORTIUM OF. INTERNATIONAL FINANCIERS

POOLING AND EXPLOITING RAILWAY CONCESSIONS. (Bee. February 22, 5.5 p.m.) Lo.ndon, February 18 The consortium of financiers is in progress of reorganisation to bring into a common pool and exploit the railway concessions held in China by the various European, Japanese, and American financial groups. The disappearance of Germany and tho practical removal of .Russia from the' Chinese sphere render the rearrangement necessary. America is represented in the new consortium by Mr. T. W. Lamont, of Piernont Morgan and C 0.,; France by the Bhnouo de Tlndo-Chine; England by the Hong-Kong-Shanghai Bank; Japan bv the Yokohama Specie Bank. Mr. Lamont represents thirty-seven great financial bouses operating from the Atlantic to the Pacific. He will leave San Francisco on February 19 for tho East, in connection with the scheme. Mr. Odagiri. formerly the Japanese ConsulGeneral at Shanghai, who now represents the Yokohama Specie Bank, will leave London on Saturday on a similar mission. There.are complications to be overcome, for" valuable railway concessions are held outside the consortium, notably by Mr. George Paulingf, a Britisher, also bv Russia, the disposal of which is uncertain. There aro also special interests held by the Banque Industrielle de Chine, controlled by M. Berthelot. tho French financier, who 16 hostile, to tho French group on tho consortium represented by the Banque do l'Tndo-Chine. In the case of Russia, provision is made for her inclusion in the consortium when she possesses a stablo Government^

Possibilities of Australasian Trade. In view,of this great financial development a competent authority in Chinese affairs informs the Australian' Press Association that there is a splendid openine for Australasian, products. Tho consortium has to finance and construct 9500 miles of railways, of which concessions have already been granted, but construction was ■ stopped by tho war. This offers a good field for Australasian sleepers and rolling- stock. There is -nlso an increasing demand for meat, the Chinese becoming more and more meatcaters, other than pork. They use much canned meat, and also need wool, butter, and clothing. Tho authority is of opinion that the British side of tho consortium should take an Imperial character, instead of being severely restricted to the. English group represented by the Hong-Kong-Shanghai, Bank, and adds-. "Tho dominions are vitally interested in future markets, and ought to be represented. Australia, for example, should liavo a voice, through the Commonwealth Bank, in the consortium as one British group, thus greatly advancing Australian t.rado interests. At the 6ame time the Commonwealth would gain increased advantages bv the establishment of a direct line of steamers with China, instead of allowing tho bulk of her trade to filter through Japanese channels. Canada lias 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 situa-tion."—Aus.-N.Z. Cable Assn.