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which perhaps at the moment appear more serious than they really are. In her central position, her unique harbour, political security, law and order, freedom from tariffs and absence of restrictions on currency, trade, capital and labour, the Colony possesses advantages gradually becoming unique in the world, and which for that very reason may enhance her value as a trade, financial, and even an industrial centre. To exploit these assets to the full however, the Colony's attraction as a free port is not enough; her reputation as one of the cheapest ports in the world must be maintained, and if possible enhanced. Whether she can do this and maintain the establishment of Government at its present scale is questionable, but in any case the burdens on the community in respect of taxation and services must ever be kept under enlightened control, and there must be constant vigilance to allow free play to the enterprise of her merchants and the skill of her workers.
14. In the course of our enquiry we came to the conclusion that, while in no way questioning the goodwill of the Government, there is some doubt whether all departments appreciate the desirability of facilitating trade to the utmost of their ability. We have heard complaints that often the official attitude has been one of aloofness, and, although we would not subscribe to the statements we have heard that there is sometimes obstruction, we feel that there must have been lack of consideration. Generally we should say that the departments of Government con- cerned at times either do not, or are unable to give sympathetic consideration to enterprises tending to benefit the Colony.
15. For instance, the compaint was constantly repeated that the most onerous conditions were imposed on grants of land irrespective of the purpose for which they were acquired. This applies not merely to private industrialists, but to public utility companies, who have to pay prices, based on bargaining conditions, which of course the public have ultimately to shoulder. Still more do these bargaining methods apply to the interpretation of the various departmental regulations which control the erection and the subsequent working of factories. Many of the proprie- tors are uninfluential and inexperienced, and while they have the European General Chamber of Commerce and the Chinese Chamber of Commerce through which to make representation to Government, we recommend that the General Chamber should set up a special Committee comprising members of their own Chamber, mem- bers of the Chinese Chambers, members of the Government, His Majesty's Trade Commissioner, and such others as they may choose to co-opt, under the Chairman- ship of the representative of the General Chamber of Commerce on the Legislative Council.
16. While not in any way wishing to belittle the good work of the two exist- ing Chambers of Commerce, we feel that such a special committee would facilitate liaison between both the Chambers themselves, between industrial interests, tourist traffic interests, the Import and Export Office, the Colonial Secretariat and other Government departments whose activities should include careful consideration of economic factors.
17. It has already been observed that the promulgation of purely municipal by-laws and regulations in statute form makes for cumbrous inflexibility.
In any case, whatever form be adopted, such laws and regulations should be easily under- standable and definite, so that a prospective owner may know in advance what con- ditions he must rigidly fulfil and what margin is left to official discretion. Not only would this simplify enterprise, but it would facilitate a reduction of official staff by eliminating inter-departmental bargaining and the imposition of extra unauthorised conditions when the obligatory requirements have already been fulfilled.
18. Apart from the resulting inflexibility it is exactly this type of legislation which lends itself so readily to the evil of Government by regulations, under which wide powers are entrusted to individual officials. This danger must be ever present in a bureaucracy such as exists in Hong Kong. Often in times of emergency measures are enacted and are allowed to remain in force indefinitely. This should be guarded against by encouraging and welcoming representations from those mem- bers of the public whose interests are affected, and by periodic revision.
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