CHINA'S FINANCES

Taranaki Daily News, 23 February 1920, Page 5

CHINA'S FINANCES

NATIONS COMBINE TO HELP. MARKET FOR AUSTRALASIA. ' By Telegraph.—Press Assn.—Copyright. Received Feb, 22, 5.5 p.m. London, Feb. 18. The consortium of international financiers is in progress of reorganisation to bring into 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 this re-arrangement necessary. America is represented in the new consortium by Mr. Lamont, of Pierpont Morgan's, France by the Banque de lndoChine, England by the Hong KongShanghai Bank, and Japan by the Yokohama Specie Bank. Mr. Lamont represents thirty-seven 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, M. Odagiri, formerly Japanese Consul-General at Shanghai, and now representing the Yokohama Specie Bank, leaves London on -Saturday on a similar mission. COMPLICATIONS TO BE MET. There are complications to be overcome, for valuable railway concessions are held outside the consortium, notably by Mr. George Pauling, a Britisher, and also by Russia, the disposal of which is uncertain. There are also special interests held by the Banque Industrielle de Chine, controlled by Mr. Berthelot, the French financier, which is hostile to the French group on the consortium represented by the Banque de Indo-Chine. In the case of Russia, provision is made for her inclusion hi the consortium when she possesses a stable Government. In view of this great financial development, a competent authority in Chinese affairs informs the Australian Press Association that there is a splendid opening for Australasian products. The consortium will have to finance and construct 9500 miles of railway, for which concessions have already been granted, but construction was stopped by the war. This offers a good field for Australasian sleepers and rolling stock. MEAT AND BUTTER WANTED. There is also an increasing demand for meat. The 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 is of opinion that the British side of the consortium should take an Imperial character instead of a severely restricted English group represented by the Hong Kong-Shanghai Bank, and adds: 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 British group, thus greatly advancing Australian trade interests. At the same time the Commonwealth would gain increased advantages by the establishir.cn 1- of a direct line of steamers with China, instead of allowing the bulk of her trade to filter through Japanese channels. Canada had 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. —Aus.-N.Z. Cable. Assn.