KOWLOON FRONTIER DISTRICT
A447
were previously large purchasers of this oil. Due to the gradual extension of motor traffic and to a general expansion of industrial enterprises, lubricating oil, mostly imported from the United States of America and Netherlands India, increased to 5.7 million litres from 4.2 million litres in 1936. Rails increased from 11,936 to 117,490 quintals. Here, again, it was the urgent need for rails in the Yangtze region on the Canton-Hankow Railway and the closing of the normal trade route through Shanghai which led to this pronounced in- crease. As in the case of imports, so with exports, considerable quantities of cargo were diverted to Kowloon for transshipment abroad. 4,956 quintals of wolfram ore, which had previously been a negligible item in the trade returns of Kowloon, was exported together with 22,819 quintals of antimony regulus and 22,452 quintals of wood oil. The number and tonnage of vessels entered and cleared under General Regulations decreased from 19,275 vessels, with 1,757,245 tons, for 1936 to 75,206 vessels, with 1,418,047 tons, for 1937, and vessels plying under Inland Waters Steam Navigation Regulations were also reduced to a great extent. Services on the railway remained normal until the outbreak of hostilities. From December only one passenger express main- tained communication with Canton. There was a drop in the number of water-borne passengers from 186,801 to 115,648 and in rail-borne from 1,728,921 to 1,360,366.
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Road construction in the district was continued. Following completion of the road from Shehow and Namtao to Taiping and thence via Tungkun to Canton, the bridge across the Shumchun River at Man! autao was completed on the last day of the year, and, although communication by road to Canton is still by a roundabout route via Waichow and Cheungmuktao, it will be possible as soon as the link between Shumchun Market and Namtao has been constructed to drive direct to Canton via Taiping and Tungkun. Great strides were made in improving communications by air from Kaitak, the air port of Hongkong, during the year. Imperial Airways continued and im- proved their weekly service run in connexion with their through service from Australia to London, Pan-American Airways began operating weekly from San Francisco via Manila to Hongkong on the 23rd April, and the Eurasia Aviation Corporation inaugurated their thrice-weekly run to and from Pei- ping on the 29th June. Connexions, already well established between Canton and Shanghai by the China National Aviation Corporation, continued to function successfully thrice weekly till the outbreak of hostilities in August put a temporary stop to their activities. Following the outbreak of hostilities the Eurasia Aviation Corporation reorganised their service to Central China, principally to Hankow, to deal with the growing traffic, and the China National Aviation Corporation recommenced operations late in the year by land-plane to Central China.
Exchange rates on Hongkong for Canton small coin fluctuated between Canton Smull-coin $128.80 and $122.50, for Canton bank-notes between $222.20 and $699.30, and for Canton bank-notes (legal tender) between $146 and $156.30 to Hongkong $100. Sterling exchange rates for Hongkong Treasury Notes fluctuated very little, high being is. 23d. and low 1s. 3ğd. Movements of treasure during the year in and out of Hongkong reached considerable dimensions, the actual figures being $386.4 million imported and $395.2 mil. lion exported. The abnormal times were responsible for this excessive move- ment of treasure.
The trade of the Colony of Hongkong increased in terms of the Hongkong dollar by 35 per cent compared with 1936, and in terms of sterling-by 32.2 per cent. The value of imports was $617.1 million (£38.1 million) compared with $452.4 million (£28.5 million) in 1936, and the value of exports was $467.3 million (£28:8 million) compared with $350.9 million (£22.1 million) in 1936.