310
"In November 1890, when the new system of clearance in 3 months was adopted by the principal Indian importers in Hongkong, fears were entertained in certain quarters as to the advisability of the movement, and all sorts of evils to the trade were prognosticated. The system has had now a fair trial of over two years, and not only have the croakings of the pessimists not been verified but the market has assumed a healthier aspect and every fictitious element which led to inflated sales and spurious prices in the past have been eliminated from the trade. During the last twelve months the productions of two new mills have been introduced into our markets, namely, the Coimbatore (in Madras) and Raja Nagar (in Amebabad). Three new mills are in course of erection in Bombay island, namely, the Bomanjee Petit Mills, The Hope Mills, and Jacob Sassoon Mills, one in Calcutta and four others in as many commercial centres of India, making a total of eight new mills, whose production we may see imported into our markets during the ensuing year. The trade with Japan has last year unexpectedly taken an upward turn, as is evidenced by the increased consumption of nearly 11,000 bales over that of 1891. The scarcity of Raw Cotton has been the principal factor at work in the altered circumstances of the trade. This improvement, however, may not be taken as a criterion, as, given another prosperous year and cheap long-stapled raw material, the Japanese bid fair to drive the foreign article from the country at no distant date. Already there is a talk of a contemplated addition of one hundred thousand spindles to the productive powers of local Mills. This would mean an increase of about 175 bales a day or close upon five thousand bales per month to the local out-put. At the close of 1889 the number of Mills throughout Japan was 34, running an aggregate of 268,988 spindles, increasing to 37 mills in 1890 capable of running 382,976 spindles. It is estimated, however, that only 270,000 spindles on an average were employed during the year producing only 110,000 bales of 400 lbs. In 1891 the number of Mills was reduced to 36, and at the close of the first half of last year they stood at 35 with 324,800 spindles producing 102,500 bales as against 110,000 bales in the whole of 1890 and 110,625 bales in 1891. Whilst this is being written, telegraphic news has been received from Japan of the total destruction by fire of two Mills in Osaka containing 30,000 spindles. The great drawback to the local industry in Japan is the unsuitability of the Home-grown Cotton for spinning either alone or after mixing with other staple on account of its harshness and shortness, and the cost to which the Mills are put in supplying themselves from foreign markets. Notwithstanding these drawbacks the country is advancing with steady progress both in the volume and quality of the manufacture suited to its require ments, and in the course of a few years Japan will not only offer an exceedingly poor outlet for Indian yarns, but be a no mean competitor with Bombay Mill-owners in China markets. In lieu of the manufactured article, however, Japan is now a large buyer in India of Raw Cotton, and the pace at which the trade is advancing since its commencement some two years ago gives promise of a no inconsiderable ex- pansion in the near future."
HONGKONG.
No. 71.
Secretary of State to Governor,
DOWNING STREET,
21 April, 1893.
SIR,
I have the honour to acknowledge the receipt of your despatch No. 12 of the 17th January last, forwarding a Memorial from the Unofficial Members of the Legislative Council in support of their Protest of the 13th of December, and praying that Her Majesty should be advised to refuse her assent to the Appropria- tion Ordinance (No. 12 of 1892), and that a Commission should be appointed to investigate and report upon the cost of the local administration.
2. I have already, in my despatch No. 25 of 15th February, dealt with the Protest itself, and in my despatch No. 24 of the 14th February, I informed you that Her Majesty would not be advised to disallow the Ordinance, and that I was satisfied that no sufficient reason had been shown for reducing the salaries of any of the existing officers of the service,