Copy.
$4
(Enclosure.)
NEW GOVERNMENT BUILDING, Des Voeux Road,
HONGKONG, 5th December, 1916.
Sin, I am directed to acknowledge receipt of your letter of 21st July, setting out the resolution passed by your Committee seeking to obtain legislation throughout the Empire whereby it will become obligatory on all Government Departments and all other bodies spending public monies, to purchase Empire-made Goods and to contract only with British firms, when such procedure is practicable.
My Committee heartily support the resolution and will take the earliest opportunity of approaching the Hongkong Government on the subject.
The Secretary,
I am, &c.,
E. A. M. WILLIAMS, Secrctury.
Trade & Industry Committee, Royal Colonial Institute, London.
3310/1916.
COLONIAL SECRETARY'S OFFICE,
HONGKONG, 19th December, 1916.
Sin, I am directed to acknowledge the receipt of your letter of the 5th December relative to a proposal that legislative powers should be taken to compel Government and other public departments and undertakings as far as possible to purchase Empire-made goods and to place all contracts with British firms.
2. It is a rule of the Colonial Service that all requisitions from a Colony for stores required from the United Kingdom or from countries not being adjacent to the Colony concerned are to be sent to the Crown Agents for the Colonies in London; and it has been the invariable practice of the Crown Agents to place orders, as far as possible, with British firms. This Government concurs that the Crown Agents should be asked to make it a hard and fast rule that its orders are to be placed with British firms within the Empire, unless such a course is considered to be at variance with public interests.
3. As regards the many orders and contracts placed locally by this Government the matter assuunes a different aspect. It is the rule that all orders in an amount exceeding $150 are to be placed by public tender; and, as your Chamber are aware, the successful tenderers are in the majority of cases Chinese firms, who may or may not contain British subjects and may or may not employ British materials. It would be possible in many cases to make it a condition that materials and stores supplied are to be of an origin within the Empire, but it would seem to be against the public interest that a fixed rule should be made in the matter. I may quote, for example, cement purchased from the Green Island Cement Company, which is made from material derived from Chinese or French territory, or coal, which is purchased from Japan.
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4. Apart from the Government there are in this Colony no Municipal or other bodies spending public moneys; and in the case of Companies performing public services, such as Gas, Electric Light, Telephone, and Tramway Companies, no present means exist of exercising any control in respect of matters unconnected with the efficiency of the service rendered.
5. I am to request that the Chamber will be so good as to acquaint this Government of the form which in their opinion legislation should take, in view of the circumstances set out in paragraphs 3 and 4 of this letter.
I am, &c.,
The Secretary,
Hongkong General Chamber of Commerce.
CLAUD SEVERN,
Colonial Secretary.