920
HONGKONG
total (excluding treasure) for 1923, of £123,326,529,
as compared with £122,191,827 in 1922. Imports were
1922. Imports were valued at £61,954,498 and exports at £61,372,331, as compared with £61,213,363 and £60,978,464 respectively in 1922. In the latter part of 1925 it was decided on the grounds of economy to close the Statistical Branch of the Imports and Exports Department, but in the early part of 1931 it was re-opened.
The Kowloon district was largely affected during 1929 by the same political and fiscal conditions which obtained at Canton. Demand from those provinces of which Hongkong forms the entrepôt was severely restricted by threats of civil war, by the rapid depreciation in foreign exchanges, especially in the last quarter of the year, and by the heavy premium at which Hongkong notes ex- changed for silver dollars. By the middle of September, when the premium on Hongkong notes was about 15 per cent., the danger of the diversion of trade from Hongkong had been more than fully realised, and commercial circles were requesting the Colonial Government to adopt remedial measures. As a result of concessions made by the latter in regard to its tax on notes, the banks con- cerned were encouraged to increase their note issue and gave orders to the London and Bombay Mints for the minting of a large supply of British silver dollars. The full benefit to Hongkong's import trade of these remedial mea- sures was unfortunately not reaped. For, although buyers in China were able to obtain at more attractive prices such goods as were already in stock in Hongkong and had been paid for before the drop in exchange, the outbreak of civil war in the interior and its inevitable effects on trade and currency produced insuperable difficulties, and by the end of the year almost complete stagnation had set in in most trades. Piece goods merchants record the year as being one of the very worst experienced, with the exception of the boycott period. Importations into Hongkong of Indian cotton yarn showed no im- provement, depreciation in the currency of Yunnan-one of the most im- portant markets-being a contributory cause, but the chief reason was that the Indian product is being steadily ousted by Chinese-especially Shanghai- yarns. Sugar merchants experienced a year of set-backs and disappointments. World production of sugar was still in excess of demand; and local prices re- mained, therefore, at a low level. A welcome contrast to these depressing re- ports is provided by the oil trade, especially in liquid fuel and benzine, which provides striking proof of the advantage already taken by motor transportation companies of the new roads, which continue to be extended in spite of disturb- ed conditions in the ports and the hinterland of the neighbouring provinces. Turning to exports via Hongkong, we find that difficulties in transportation from the interior and financial uncertainty have prevented Chinese producers from reaping full benefit from the downward tendency in foreign exchange and,
in many lines, keen demand from abroad. Shortage of supplies, for in- stance, drove the price of wolfram ore from $30 a picul in March and April to the record price of $80 in October. Japan was a heavy buyer of manganese ore, the price of which, however, remained fairly steady. Reports on the raw silk market vary, but in general a fair turnover was recorded. Prior to the 1st February junk-borne imports and exports both paid duty according to a special tariff, which was considerably lower than that applied to steamer-borne cargo. With the introduction of the increased import tariff and its application to consignments by all types of vessels, the considerable advantage formerly enjoyed by junks disappeared, and it is not surprising, therefore, that importa- tions by the latter type of vessel proportionately declined. But a contribu- tory-and far more serious-cause lies in the amount of smuggling, to a large extent by motor-boats under foreign flags. The value of rail-borne goods was approximately the same as in the preceding year.
Hongkong possesses unrivalled steam communication and there are frequent and regular mail services to Europe, America, Australia and Africa. Regular steam communication between Java and Hongkong is maintained by the Java- China-Japan Line and the Nederland Royal Mail Line. Between the ports on the east coast of China, Formosa and Hongkong the steamers of the Douglas S.S. Co. and the Osaka Shosen Kaisha ply regularly, and there is constant