"Blue Book 1932, p. T4.
Blue Book
1933, p T4.
Blue Book 1933, p. 14.
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82
In relation to the rest of the Empire Hong Kong is geographically minute. Nevertheless, it contains the fifth largest port in the world.
2. As far as Trade Figures can depict the position the following are of interest. In 1932 the total shipping tonnage entering and clearing the Port of Hong Kong was 43,824,906 tons. Of this 20,414,218 tons or nearly half, was British. In 1933 the total tonnage entering and clearing was 37,698,985 tons, 19,553,462 tons of which was British. Again the British tonnage was about half of the total.
3. Taking 1933, the last year for which complete figures are available, the total imports into the Colony including treasure amounted to $539,052,046. Of this $98,328,141 worth, or a little less than one-fifth came. from the British Empire. Of a total export in 1933 of $537,224,754, $110,510,358 worth was exported to the British Empire. This figure again represents about one-fifth of the total.
4. It must be remembered that not more than about one-tenth of the imports are consumed in the Colony and that probably less than one-tenth of the exports are produced in the Colony. The remainder represents goods in transit for which Hong Kong is a suitable financial centre, place of storage, and port of ocean ship- ment. Hong Kong gains this business (a) because of its excellent harbour and (b) because of the cheapness of its facilities. Addition to the cost of the entrepot trade will tend towards a decreased use of Hong Kong, while conversely a cheapening of facilities will enhance its value to that trade. In a manufacturing business the economic use of bye-products tends to decrease the cost of manu- facture of the principal product. In a similar manner, the fostering of economic activities subsidiary to the main business of the entrepot trade of the Colony of Hong Kong will tend to decrease the costs of that business. The effect of a decrease in costs may, in normal times be an increase in volume.
5. The above enunciated principle applies, of course, to all activities which may be considered subsidiary to the main business of the Colony, such as wireless and cable communications, the development of aviation, the development of the tourist traffic, and such development of industries as is possible. In this chapter we consider the matter from the industrial point of view.
6. We realised that no deliberations, having as their aim an amelioration of the existing position and the improvement of the trade of the Colony, would be complete unless we examined the possibility of Hong Kong attaining a closer economic contact with the rest of the British Empire. This question involved an examination of the Imperial Preference Policy which dates from the Ottawa Agreement of 1932.
7. We were extremely fortunate in the fact that early in the course of our meetings the Report of the Straits Settlements Economic Commission was published. With regard to Imperial Preference the position of the Straits Settlements is, similar to that of Hong Kong. We have, therefore, taken advantage of that excellent report to which we acknowledge our indebtedness and from which we freely quote in this chapter.
8. As stated in the Straits Settlements report the object of the policy adopted at Ottawa was Imperial Co-operation, the rationalisation of agricultural and manu- facturing production and the safeguarding of markets. For this purpose the Em- pire falls into three categories-the United Kingdom, which is the industrial centre: the Dominions and India, which export the higher classes of foodstuffs and raw materials and have also entered into the industrial field in competition to some extent with the United Kingdom; and the Colonies, whose main function is to export produce and whose manufactures are on the whole negligible. It is obvious, there- fore, that it would not be in keeping with Imperial policy to encourage additional manufacturing production in the Colonies for world markets which could more rea- sonably be supplied by the United Kingdom or the Dominions (including India).