New-York tribune., 1920-11-21
Japan Is Seeking
British Capital to
Develop Mancl1uria
Baron Hayashi, in Making
Bid for Financial Hep.
Says 1t Is Necessary in
Order to Improve Railway
From a spccal Correspondent

oINSI lO Iii prove halfway
From Spccal Co1respondent
LONDON, Nov. 11.--Under the cap
tion British Capital Wanted in the
Far East The Manchester Guardian
Commercial prints an interview with
Baron Hayashi, the new Japanese Am
bassador In London, the keynote Of
which is that the industrial Develop
ment Of Manchuria has induced Japan
to look to Britain for help.
Before his appointment to tho en-
bassy here Baron Hayashi was Gov
ernor General of Manchuria, so that
he speaks with first hand knowledge Of
conditions in the sphere which Japan
now is exploiting.
Asserting that Japan is slowly
emerging from the recent financial
crisis there, which he attributes to
tinued:
$50 rapidly is the trade Of Manchu-
RIA growing that we are finding the
means Of transport absolutely INSULT
clcnt. You remember that, about ten
years ago, we had to rebuild the rail-
way which We had taken over from the
Russians. We did this, curously
enough, with British money, but with
American Materials Now we find our
selves confronted with the necessity Of
/ improving the railway again, and we
are hoping that it may be possible to
use British materials.
I've are in urgent need Of railway
material Of all kinds, and particularly
Of rolling stock and locomotives An
other demand which is making itself
felt is everything wanted for the en-
largement of the harbors Of Dalny and
| NluchWang. The rise Of Dalny has
| been almost phenomenal, and it is now
the third largest port in China.
Dalny Port Needs Capital
"Thc enlargement of the port of
Dalny is an undertaking of consider
able magnitude The expense is being
borne by the railway company, one-half
the shares of which are held by the
Imperial Japanese government. The
present resources Of the railway COM
pany are by no means sufficient to de-
fray the cost Of this enterprise and it
will be necessary to increase the CAPT
tai considerably We are anxious, if
possible, to get this additional capital
in Great Britain. If we fail here we
shall have to try elsewhere, of course
but the advantages to British trade of
securing a strong holding in the Man
churian railways are so obvious as to
need no elaboration on my part.
"Spcaking generally, we hope to see q
greater extension of British CONNER
cial activity in Manchuria than has
hitherto been the case. There are signs
Of awakening. The Hong Kong and
Shanghai Bank opened branch in
Dalny, step which ought to be ex-
ceedingly helpful.
aside from the items already men
toned, there are opportunities for the
export to Manchuria of almost every
kind of manufactured goods. 1t is
my earnest hope, and that Of my coun-
try, that British trade may take its
proper share in this great and growing
market"
China Has Different View
What China, however, thinks of the
Japanese plans is another matter. The
| lzvestia, Of Petrograd, commenting on
the diplomatic treaty recently con-
cluded between China and Soviet Rus
sa, mentions that Chinese displo-
matte mission already has arrived in
Moscow, seeking, in exchange for the
goods with which China is willing to
supply Russia, materials to replace
those which are now supplied by Jap
ancse direction.
Meanwhile, the Trans-Pacifc, of
Toxic, announces that China is almost
virgin soil from the traders point of
view" and continues: "Given some
originality, lots Of initiative and
reasonable amount of judgment, there
would seem to be no limit to the num-
Der Of lines that might be successfully
pushed by tho enterprising foreign
trader. The market is here for him,
and if the facilities are not MI that
could be desired, they exist In quite
sufficient degree to justify a begin
ming"
This viewpoint is apparently cor
roborated by the Far Eastern Review,
Of .Vladivostok, which states that al
though HarSln, the chief commercial
center Of Manchuria, Is now in the
throes Of an acute trade depression, it
is urgently IN need of materials from
foreign sources.
Other adviccs from Japan show that
there has been an overproduction
Of textiles, and that factories now
arc contemplating part-time operations,
or even shutting down, rather than
dump huge stocks Of goods on the
market. The export trade in hosiery
goods and food products is said to be
increasing, and this, going hand in
hand with ambitious schemes Of harbor
Improvement, fosters the belief that
at least a part Of japanese industry
has weathered the recent financial
crisis.
significant fact, however, is that
the japanese demand for coal is de-
creasing, the falling off having COM
mcnced about the middle of August
and having continued up to the present
/ time.
Crown Jewel Is Bogus