222 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,
to their own foreign standards, ete. . This has meant financial groups,
foreign banks of large capital, etc.
The investment of foreign capital in local industries, such as
cotton mills, paper mills, etc., naturally guarantees the use of the
same foreign machinery, equipment, and supplies, and each successful
 mill has been a model for Chinese imitation with the employment
of the foreign managers and specialists; innumerable instances of
this kind might be pointed out, not only in cotton mills but in other
maguicaRing beanies, in mining, Tailway work, ete.
Under the Hukuang Railway Toan agreement foreign engineers
are to be appointed for the several sections of the road, foreign purchasing
 agents are provided for, with commissions, and naturally,
although the agreement specifies equal foreign competition, specifications
 drawn by British or German engineers to British and German
 standards in themselves prove a serious obstacle to American
competition, in the same way that specifications drawn by the American
 engineer, probably on American standards, would be equally
favorable.
On the subject of discrimination in banking or transportation
facilities it is pertinent to comment that with only one American
bank, of limited capital and conservative or restricted banking
policy, American trade has had to be financed through foreign,
principally British, banks, and the interest of those banks in American
 trade obviously is not as close and keen as in the trade of their
own country, whose laws, institutions, manufacturers, etc., are all
within their close, intimate knowledge and association.
In shipping facilities, until recently the only American ships were
those of the Pacific Mail Steamship Zo. which have now been withdrawn.

A feature of discrimination, if such it may be said to be, is the
effect of the British enemy-trading regulations on the trade of neutrals
 in China, and also the Japanese enemy-trading restriction. The
former forbids British firms, banks, subjects, or vessels to be concerned
 in any way, directly or indirectly, in trade with which enemy
subjects of Great Britain may be concerned or may, or may have,
profited, directly or indirectly.
The British firms control the shipping, the lighterage, the marine
insurance, the press packing, ete.
American firms trading directly or indirectly with Germans or
Austrians in American, Chinese, or other products or manufactures
pre forbidden the use of any of these facilities, upon which they
had long depended; with the withdrawal of such facilities their
trade must, under the circumstances, cease in the absence of facilities
of their own.
In so far as the facilities are granted for other trade, their every
transaction is now closely scrutinized by the British authorities,
with the production of papers and documents, the examination of
records to-ascertain whether the firm is largely engaged in trade with
enemy subjects of Great Britain, etc.
This may be described as under the heading of activities of foreign
Governments due to war conditions,