The New York herald., 1922-05-28
Germans Turn to China in Hope
of Rebuilding Trade Lost by War

Special co,rssponderce to Tus NEW rosH
HHAkc.
New York Herald Bureau.
Berlin. Nay II.
Germans now look to China as one
OF the few remaining large countries
where German enterprise and trade
initiative can yet find place. Former
German residents Of China have now
largely returned there. German ex-
portations to China are being encour-
aged in Germany, and German mer-
chants and manufacturers are seeking
not only to sell their home wares but
to open branch factories in China.
During the war German contact with
China was completely severed. Ger
many lost Shantung and Tsin- Tau,
important German trade as we'll as
military bases. Many Germans them
selves were interned and German
property was sequestered.
Most Of the war difficulties were set
tied and basis found for q resump-
ton of trade relations in q treaty be-
tween the two countries concluded
May 20 last year.
BY the terms Of this treaty Germans
received back their property, with the
exception Of couple of mines and the
property Of the German-Asiatic Bank,
which the Chinese Government stir
holds sequestered until the German
| Government meets $4,000. 600 war repa-
| rations claims. Otherwise this treaty
was attractive to the Germans because
1t permitted them to begin business
again in China without the extension Of
the Ill defined burdens Of the Treaty Of
Versailles-a tax to which the Chinese
refused to align themselves because of
the anti-Chinese Shantung clause it con-
tains.
Obstacles which Germans encountered
In resuming trade relations with China
were numerous. The Germans had no
longer their own ships to carry their
wares to Chinese ports. Germans also
found that their capital in German
marks melted away when they changed
them into the other currencies neces-
sary for resuming business. The Chi
nese compradores. native business men
who acted as agents for German firms,
had found other employment.
Good start Is Made.
But an important beginning has been
made. Some four hundred Germans re-
turned 20 China to resume business las.
year and nearly as many more have
already returned this year. German off,
ciais formerly in Chinese service, how
ever, for the most part are not going
back even though Chinese service is
again open to them. They are of the
opinion that anti-German feeling among
other foreign administrators in China is
too great for German to secure ad-
vancement in the service.
The principal German shipping lines
have already opened their Chinese SER
vice. But for the time being this means
only few small freiShters. These carry
but a small part of the wares now ex-
changed between the two countries.
Much German exporting has gone TO
China by Dutch and English ships. Ger
man wares from the occupied area, often
disguised, have been sent In large guam
titles via Antwerp and French ports to
China. In 1913 Germany exported 2s.-
600. .000 tells OF wares to China, while last
year the amount was between 5000, 900
and 1900. 900 tells. about a fourth OF the
peace time trade. This does not, how
ever. represent more than half of the
Chinese wares which Germans bought.
During the year large stocks OF Chinese
goods were accumulated in English and
Dutch warehouses. Germans bought
large amounts OF these wares at low
prices and with Immediate delivery.
Germany is exporting steel and iron
wares, machinery, toys and household
goods to China. The Germans are buy
ing hides and cotton goods in return.
Chinese imports into Germany are also
about a fourth Of what they were be-
WV Wv "eh-fs'NVsV'v W osVS'tNNV lci. 10
compared with 1s,ooo.ooo in 1918. The Chi
nese Legation tells me that several lead
Ing German firms are seeking informa-
ton about the possibilities not only OF
selling their wares in China but OF open
ms factories there. Also. many of the
German business men who are now
going to China are going less to re-
establish relations between Germany
and China than to build up establish |
ments In China for trade with other
countries which have larger buying |
power than Germany.
Active Before war.
Germans took an active part in Chi. |
nsse domestic trade before the war
They did much 10 build up the Chinese
textile industry, which now Ia almost
entirely in Japanese hands. Trade in
furs ,rd skins, oil seeds ana vegetable