EAST AND WEST

Hokitika Guardian, 10 June 1932, Page 3

EAST AND WEST

ECONOMIC REL ATI ONS. ADDRESS TO HISTORICAL ASSOCIATION. CHRISTCHURCH, June 9. Mr G. Lawn, of the Canterbury College or economics, delivered an address on “Hie Economic Relations between East and West, with Special Reference to the Age < i imperialism,” to members of the Historical Association last night. Mr A. ci. Anderson was in the chair. There Was a big change in the conditions of world trade in the ’seventies, stated Mr Lawn. The Suez Canal alters the recognised trade routes; rapid industrialisation was taking place in Germany and the United States; and there was a scramble lor supplies of raw materials and markets for manufactured goods.

THE STRUGGLE FOR MARKETS The rise of the cotton industry in Japan, for instance, which supplied tb .Japanese, Chinese, and Straits Settlement markets, bud enabled iho .Japanese to eonribute towards the fallingoff of tbe Lancashire trade. The rise of cotton manufacturing in China bad reacted on the industry in Japan, India, and Lancashire. But in terms of .n:ld trade this actually meant an expansion, though it might perhaps be detrimental in a local sense. The revolution in .transport 1 the Bessemer .steel process,' refrigerating machinery, and improved hnsincsu methods were all cited by the speaker as opening up new relations. Concessions v.-ero aimed at in new countries, and especially in the Ea,st. JAPAN AND INDO-CHINA. From 18(58 there was rapid industrial development in Japan, and it was soon able to compete with European countries in certain manufactures. Japanese industry was largely internally financed, but in Indo-Chinn the Fro,noli secured concessions 'and extended their influence by militaryoperations. There were great possibilities for tlie expansion of trade with Southern China, particularly in the matter of minerals and metals, and n railway concession was soon obtained. France thus gained a large trading influence. and even now 40 per cent, of Tndo-China!s imports come from France. ECONOMIC PENETRATION OF CHINA.

Until the forties there was practically’ no trade with China, but the possibilities of establishing shipping lines, railways, and mines were big while Government loans and manufacturing enterprises were suitable for financial investment. But some sort

'i security had to be gained, so that, simultaneunsly with the progress of economic penetration right’s; such a: that of extra-territoriality, had to be granted by the Chinese. The Chinese had now freed themselves of sonic of the conditions that they considered unfairly imposed upon their country in the early days. After the Opium War, five treaty ports were established, and Britisi goods were subject to a fixed Customduty. Iu 1844 treaties were also made with the United States and France, as a result of which there was a big increase in trade, but no investment of eapital was yet thought of. England and France obtained further con’ cessions after the war arising freui the nuirdei- of a I'T'ench >eis- bna > v i' 1857. Alter the Pekin Convention of 1860. a European admin is tin tor v. u appointed to the Custom*.

INVESTMENT, OF CAPITAL. Investment of foreign capital followed the Siiimoneseki Com cntion n. 1895, and it was also about this peri;.' tha t the scramble for com-c.v .ions occurred. Various countries brought al their powers of diplomacy to be.,r am were righteously im.ignaiit wne. special concessions were infnngco. There is no doubt that Cfliincse in toi'Oeits were almost entirely dlsre garded. Investors iu the United States wen not under the same necessity of seek ing profitable foreign fields of invest niunt at this period, and it was not till the twentieth century, that American investments assumed large proportions. The Chinese Eastern Rail way was largely financed by Ercncli investors, and it was in to resting to eon,sitlcr how far the French might be behind Japan's Manchurian policy. After the war between Russia am Japan, terminated in 190-5, many Run sian.s rights iu railways and terrilon were ceded to Japan, and this opene up rich mining concessions. The up shot of all the railway constructim was that China had now 8600 miles o railways, of which 2000 miles wi r< owned and controlled by foreigners.

Tin-: pi 11 i;i it inks. In their control of the I*lii 1 i 1I| *ilies. ■ might be noted, Iho Aliieric:in Inid s,e up diseriminatory (‘nstonis duties sin now siip'dies between (it) and 70 ])ei cent, of tile imports. The indepondenc movement in the Philippine* was al so supported by certain interests ii Anioricsi. which objected to the lov rate of duty imposed on oertain it' ports from the Philippines. At tile eonclmsio of bis address, -Mi ' awn answered sevi'ral onesiions an gave a brief aceonnt of factory conditions and problems in China . A vote of thanks to the speaker "’aproposed by the Ituy. M. A. I'ngb Pratt and carried.