THE CHINA MAIL, SATURDAY, MARCH 11,
ANNUAL MEETING OF HONG KONG BANK
on
Sir Arthur Morse the future
re of China SINO-BRITISH TRADE
of
Proposals for the enlargement of i "I will not attempt to foretell equipment and rolling stock. the Legislative Council have also whether and for how long Chians to be hoped that when diplo been submifited and the members will follow simildr plans and matle relationï have been fully of the community have had a polleles? » Nationalistic Influen- established on normal basis t chance to express their views. cen- aro, bfrong, China's lenders Peking some information will be There is a divergence of opinion will also ob awayed by foreign forthcoming as to the possibility 4nd-afrial-decklon-1 must clearly policy considerations, the nood of negotiations with the Central not be rushed. A Me. Creech for foreign trade an
other
do-Peoples Government about Jones said in Parliament on De-sliderations, the need for foreign China's railway debt, and other cember 14, 'making_constitutions trade and other
desiderata,
and
obligations. It must is not too easy or fast a proce- it remains to be seen which pull that the new
uncial
Gov- dure.
will be the strongest, but the ernitient of China accept respon Sino-Soviet Treaty and supple for the International mehtary agreciments of February treaty obligations of its prede 14 supply a significant pointer.. cewors including of course thei
Trade prospects
Ahanclat·· Jihbilitles which are "By recognition of China and by the establishment
of diplo- ratic relations, we have shown that we have an open mind and that, even though our systems of valid reason, so far as Government differ, there is ro can at present be seen, why Britain and China should not trade Gm- tisfactory terms.
The Budget
The Sino-Soviet Treaty and supplementary agreements of Feb- ruary 14 supply a significant pointer to the Feking Govern- ments plans and policies, declared Sir Arthur Morse, Chair- man of the Board of Directors of the Hong Kong and Shang- hai Banking Corporation, presiding at the Bank's annual largely due to what the meeting yesterday.
Sir Arthur said that while nationalistic influences are strong, Chino's lead- ers will also be swayed by foreign policy considerations and the need for foreigh trade, and it rembins to be seen which pull will be the
strongest,
There was no valid reason, Sir Arthur added, why Britain and China should
not trade on satisfactory terms.
Sir Arthur, who announced "In China a
is an
站
to
Properly authenticated.
"The year 1940 has been one of
that add' North China Taken toge United States' dollars was an end their this connection I woul
nounced, after which the market settled down again to more nor
confultions. #
tb
The Financial Secretary In'in- troducing the Budget Estimates on March 8 revealed that for the. year 1910/80 there is a surplus of
Progress in Japan just under $38 millions but this
marked progress in Tripih shd as Financial Secretary described as
a consequence the occupation Windfalls and to economies un
kontrols have been considerabl dertaken when the despatch.
relaxed, 'There are stil some reinforcementä "Was foreseen.
gloomy prophets who in General Government is to be congratulat-
MadAfther's words) forecast the ¡eđ ̈oh'tib'position but the forecast
hamidence of economie' disastet. (of over incressing, expenditure
"In fact last March the Prost the re-emergence of political cannbt, but cause some concerni
dent of the Boart of Trade sald reaction and, inevitablp - sociá Novertheless we all must realise in Parliament that the British rehvülsions: 'but "there are
alsb that if the Colony is to be proper-30
Government»'are guided in their those who are full of starry ly protected we must play our full trade relations by considératforis
optimism. So the hard- erons eyed of economic advantage and can-headed" banker Ands it, dimeult. part in paying for such protection, The Financial Secretary's state- not make it a rule that trade | to steèr a course - which wit number of our. where millions of pounds worthmont was so full that it is unne- Agreements Cavith
Communist guide a policy safely towards a profit on the year of $17,042.-offices on the coast are at pre-of goods are awaiting shipit:ent, censary for me to say more. countries) shall be subject to the the future. 477, referred in his report to sent riot operating, owing to the and we fear that the situation |
contenitous We have seen a number of settlement of political questions. Two
problems the situation in the Far East we hope that they will be activ kade of Shanghal and Canton Hoset of the Colony during the past
conditions prevailing there, but cannot be relieved until the blbc-disturbances in the Gnancial mar- "The far-reaching implies-hong like a cloud over Jepaji. generally,' saying that at pre-
trone of the statement are First that of the Pence Třunty again as soon as the political out- been raised and more stable con year: There was the order issued obvious and ̋have, ว sent the quilook is only satis
presume, with which is bound up the fu Took Improves
ditions prevail in China. The fin off April 14 factory in those countries where
(apparently at the been carefully weighed.
fure status of SCAP (nd orga "In Japon the temporary office ance of a considerable part of instance of the International there is economic stability and which we opened at Kure for the
"I am deliberately refrainingnisation set up by the Supromb these Immense stocks of delayed Monetary Fund) prohibiting tran- from any comment on the rolu Commander of the ~· Allich reasonable contentment-the benent of the Commonwealth cargoes destined for China has sactions in, possession of and pub- tions between Hong Kong and Powers). Secondly that of picture is obscure or gloomy Forces has now been closed bit been covered by margins or other fishing Information about gold, China and it would serve no Japan's relations with Chini where low standards of living our branch at Tokyo has been arrangements but there are pro-which set on foot at quite un good purpose to give any views From the political point of and backward economue condi-bigger staff, a larger building fint baby substantial speculative purrounded rumour that the Hong on the prospects of China' the first is of overwhelming in.
hos chases bs well
of the tims are not receiving adequate been rented at Kost and at Yokosneds, careful watch the position Kong dollar was to be devalued foreign trade and on the outlook portance for the whole attention.
In terms of sterling this was casi- | for China's Industrialisatiori, Pacifle area. The second Hinges hama we are back in part of out Political
"The loss of business, the inely scotched. In May there started which some expect depend to a large extent on the first and, developments in building although the main bank-
conveniences and the risks invol berfouk panle Which lasted upon one spurce and some upon while partly political; istok par Indo-China seem likely to b ing hall and our Agent's resi-
ved in the situation caused in the throughout the summer due main- another fact China is as in- ticular moment in connection of pivotal importandd to South!dence are still held", by the
coastal blockade and the civil war 19 10 fears about the effect of the befutable ás ever, “Naturally the with Japan's economic outlook. East Asia throughout the com- Anderican Army: "
in Chins are thus a serious war political developments in China.
since satisfactory trade relationa ing yeats and-sllould be watch-hore, In Singapore orld in London "Our thrte Trustee Companie...,
ry to-Chinese and foreign mer-For- the first time in three years rationa of foreign banks
have been on a small scale with China are essentint if the ed with close attention, he continue to grow in'itportance to
chants but it speaks volumes for the merchant rate had
to
be lu- the declared, while there
enterprise of traders and wered until it reached the bottom and you might well ask what is former foreign trade
future for foreign banks in develop on a well-destined pat the the Bank and in userüifiess to the shippers that in spite of all han-peg of 1/2 13/18. The furry last- undercurrent of nervousness in public their many customers
Chins. In reply I would refer tern Without further bill froth Thailand in regard to possible will testify:
dicaps the 1049 export figures of until after the devaluation of you to the last issue of the Eco Amerlen; *** fram Hong Kong to South, Cen- sterling in terms of gold and political developments and lu-
For East
Such
a fair out- note that the adverse balance-of bour in inclined to be restive.
ther were more than double those
line of the Importance of foreign Gupha's trade in 1940 to Novem- Sir Arthur" said—
of 1948 even excluding the great
banks in the region covered" by bor was about U.S.1980 mililons ly Incicused shipments to Macad
Lite survey. Such bariks."as" is which is a high figure when the for South China. Imports from
well known. specialise in foreige | small volume of Japan's pre- Chink Into Hong Kong Were allo
trade Bnance and provide essen-sent trade is borne in mind. But considerably higher but as few
th! service" for which the indids I have said, progress Wits ocean vessels have been able to
genous banks either lack the ro made in 1019 and this will bb call at Shanghal since the bibrk
sourtes or the ability and dk-demonstrated if I ade commenced it is clear that
affecting perience!" It Is a fact' that the of" the
highlightion a fert China's total foreign trade must
Bhiking systems in most count Japan's general economy. have been much lower in 1949
Lles of the East are only in the "In April a single general ex- early stages development; 'ex- change rate was fixed at Yen 360 perience and stability talle midity to one United States dollar. This Vents to aequife, while internal removed the uncertainly which 55litical and currency dimeulties
on the a good effect have in softie cases hit them bard. had prevailed for some time i
the services of foreffe punks port trade. There were tumours have therefore been, and for nt devaluation in line with Ster Kong Clearing House figures dur The Government statistician many years to come wil
ope-ritative denial by SCAP had for this amount, for the interim gold and United States dollars on the amount was equivalent to which gives a "general" guide to rate of much value to Eastern stabilising effect. dividend of £2 per share and for September
FB.Although
1516 millions: In 1049 the gure major changes in the cost of living countries, especially in connec
United State "In May the the Ann dividend of
be finally £3 per proved to
unavoidable Increased to H.K.$11,005
millions of
of the community as a whole tion with the expansion of Government announced thin. share, the balance of profit to be and had been expected by tan equivalent to about 687 millions This shows that on the basis that foreign trade which scessarily there would be no further re
vet will informed circles;
tual certainly an Impressive
parations removals from Japur amount to $5,359,083, an Increase
100, the December 1040 @gurd increase the industrialisation of This was received, with mixed turbances On the other-and-l would be 655 but taking
Marel
cutintry. If therefore the feelings throughout
the co
countries is significant that the long-Kong 1947 as 100 the December figure Eastern countries #destre that which had hoped to benent but Stock Exchange has been in the would be 112,Wage rates in
decisión 'on business transacted in
or the
of develop raplilly and emclently, vorted the cases risen since 1939 above.
there will be need for the apt-ground that Japan could not pay "it achieved no permanent figures appears to have been only
iebimparative level of the cost of cialised services of world-wide her way I reparations word com cure for Britain's financial prob-half that of 1948. There has been in Index in the same period.
I am glad to therto
that tinued......... banks. Táme rideThe unaccompanied a general fall in the quotations
consideralt inthe longer
this precept
the spring a has not
ing a policy of dis by mhigh-ešlaxations of existing of ahures, averaging say. around realistic that hasie antaries and teen questioned in any duty Inflation and husterity was Irina- restrictions on the use of starli
25 per
cent and as a conse-
dhould still follow the 16' the Eist that is why we dla
Furated with a view to ensuring ---ing-it-falled-to-restore confiquence market prices show Browarsdales in view or the hot propose to withdraw our abamnced bulget which was In
generous retu
retura of
of eight
offices from Chita
to Jong as fact effected, thanks partly 10 per cent"""and more
is some
or their
radical cuts in Governm оп shares of some of the best
Being able 18
aldics which are now to ha companies in Hong Kong Poll-
Taxation Chinese her
reduced. tical fears and anxieties have of
Railway course been the cause of this re-
have noted with interest there in the year and the Note sue cession.
tent' reports that all the railways was slubilised so successfully that throughout Chind" are how 'ahte the volume gutstanding of the end again operating effectively and of 194) was almost identical wit In most case with capacity pas-that at the end of 1918. Eeniger and freight traffic?114,00
(Continued
The
British recovery This time last year I spoke "The profit for the year, after cheerfully about the progrest inaking transfers to provisions malo by Great Britain in her and reserves Tor contingencies afid ourvery programme. Internal after deducting special adminis-progress hak indeed continued and trative expenses and
auditors' productivity and industrial out- fees, which are this year shown
increased by several separately in
accounts, valuable points per cent. But, at amounts to HK$13,042,477 and
you are aware, externally things exceeds the corresponding figure did not go well in the early part for the previous year by just over
of last year and the steady in-than in 1948 even though d'large $250,000. After taking into ac
crease in the Sterling Area's proportion of the traite has the count the balance of profit brought dollar deficit, which became to Hong Kong.SE forward from last year thè sum
alarming about the middle of the available for distribution amounts year, coupled with loss of conti- $21,321,108. Your directors dence and other features brought recommend, that the sum of $3-about a rapid deterioration which 000,000 should be written or forced the British Government to
to
Stock Exchange "Last year I mentioned on enormous increase in the"" Hong
*Some of you may think it strange that in a speech like this should refer so fully to some- what parochial matters, but I'd so deliberately becnued I wish shareholders in other parts of the world and especially in the United Kingdom, to have a better conception of the way in which Hong Hong is developing thanks to British law, order and enter |prise combined-with the many qualities of the Chinese no- good pulation, but particularly their
their work.
Exi
Cx*
bank premises. After 'allowing devalue the pound in terms of Ing the 'Jakt few years: In 1010 | publishes a retuli' price Index ["CIC" the§"are" pérmiteainling in September but on autho÷
the eventual
carried forward to next year w-decision by Hils Majesty's Govern partly"due to the gigure out |«ther fest"quarter" of "1939 ··· equals goes hand-li hard"with" steps to
of approximately $1,050,000 ever ment came as an unpleasant shock the corresponding balance carried 10 most people in the Sterling forward from the previous year. Are particularly because of the
dia
"The nota issue hint again in magnitude of the change in the doldrums throughout the year and / Kand have in the majorit trade"and", industrialibatiori' għal) | His Majesty's Government sup
creased and exceeds the previous** year's total by over £2 millions. Amounts due to subsidiary com-. panies acceptances
and
"on behalf
of customer exceed the
ponding figure for the
corres
by just over £21⁄21⁄21⁄2-mill
"The
year by revegale" of ch" at dence overgene
១០ អĒត
"The Tres an?" black" "thar- kets of the world continued to quote sterling at a discount. "In the East the reactions of those informed on economie mat- ters showed a general sense of dismay that matters should have come to such a pass and that the Sterling/Dollar difficulties should
bankers and money at call is this year slightly higher than the corresponding Agure for the pre- vious year. The total of invest ments shows a decrease of Just over £7 millione as compared with last year's figure but this decrease is offset by an increase in bills receivable and items in
crease in the funds of the Batik Sta
1 very
to
-dollar
h 7:་་
tha
Waphic and "standard"of therman Will Förhts were also introduced duri
Hving,
"China's future
"I said last year that the poli-
tical and economic structure of China was in-a-more ominous po¬
"Hong Kong's air traffic re- turns for 1040 were swollen by ation than it had been since for eventa in mid-summer when reign traders had established them-
be "gtherwise insoluble as Sit tukess from¬Sbanghal used this solves on Chinese soil. We have transit, thus alcaling an inlanford: Criģipš1put-it. cactions means of escape-from-feared pollen the structure-collapse during though there dashartige (t
now employed in financing trade in the East werd stronger than the tical The provision for bad and doubt-
ful debts shown' dn Ihereasð " OL
over £1 millions pà ̈compared
with the corresponding figure-last
Sed a loss
vengeance.
scen
tho Towards the end
past year. Wo have the West and the
of the year when fie twó” lead- armies disintegrate and curren of our countrying Chinese airways companies
in process of development. The lected from the Taiwan Goetiagoivo, We seo a revolution those responsibleernment, many of their aircraft effect of this has been to maks a liability situation
prospered
year. The amount at which bant Cony of this Bank, the were grounded and "at the catté j.pur. China branches
polley
shect is after deduction of the $3 base throughout last year weighed the Hong Kong maturos
rt
almost as heavily as the problem
millions which your Diretoff consequent on the confusion and garter of the punk of to 'öbé coeding is having a very
commend should be written
this item and the increase in the uncertainty in the various count
present year will see tries out East.
considerable reduction in these total of bank premises over the corresponding Agure last yearIt can be safely maintained Agures as the China trafic scemi reflects the further Implementa | the
that, the new
Government will unlikely to re-open in the imme
alate tion of the building programme continue to make every effort to traffic congestion at Kal Tak air
As & future.
result the to which I referred both last year
ensure that the deficft in the and the year before.
the year beхоке
dollar balarice of payments is refleld will be cased but it will not duced during the present year and polve the problem of futuro Heedi ato maintained at a Orchard Road, Singapore, in our
Bafe level, At the same time up-to-date" storied building which
the narrow Was christeneck McDonald majority obtained by the Labour House" by the Commissioner-party in the General Election will General on July 2.
"We have to record the opening
"tima" and "owing to the Jack "of
presa medhages it is not generally realised how serious the is as a result of recent position blockade. heavy air raids and the continued On Humanitarian roads alone the bombing of this crowded and Díaerended. should receive the urgent"
ofond new i bronchi-that' at that the gold and dollar reserved and of safety for large¬typea~of Elon" of the Power Fest!
COMING TO THE:
LEE THEATRE
STRANUL DAN
Timagino Yesult'ira slowing down of the more controversial parts of their economic and financial pro-
grammes,
"Hồng Kong trade
Hong-Kong's fore
foreign trade in
1940 has again for the third your in succession been a record.
**The Scoretary of State for ions have been made to the
the dolomies said recently' that
Notions as well as to Loht Pion and Ayashingfati Hut, speedy, the Wheels within ten feet wish that round in connection with culta say more but I're sure you rangements for construction of will support me in expressing the “TRE pare to
dospect sympathy with our bo'
Shanghal,
Käy.” 1”Erüst"that" this dressed forward as a matter of ComFurgonoy,
one o
of the outstanding events of the year from the point of view at this Colony was the de-
Is tempting to look to Earb Europe for guidance in regard to the possible-futura economic developments in China and in- deed there are a number of clear.
The reason for this increase is clalor made a result of the parallels between the two areas: abvious. The port of Shanghai vist in June of the Minister of both were primarily agricultural has been virtually closed by the Defence, to reinforc The local prior to World War 11 many of Komintang- blickatle sinetast
Karrison lowing 16. thei
their raw material had been
thy and all the other Chiffese position in China and to
o Hi Mia-developed with the aid of faralen coastal parts have been subject to asky Cavernment responsibly capital; the one sten, was drawn restricted use for varying periods ity for Hong Kong, and this
he web inte garifany's orbitand
the Although" "Tientsin- did briak Lane of people business for blas, months in the of the British tacopa har
rel the war, all the Edibiderable other" "Into that of Japan. - After been whitomed and great onera countries moved As a result cargoes eventually have been made and are bain towards rationalisation of destined for Chines have gatoma contirided, "KS" provide “sultatto Considerable;exibnjì colha to Höng amenities which we riallaOKYO
raw material ** resources, *41) banka and their industries: "ON" from all over the world bably nerdødvin, “vrinin b
while some of China's export com make-shin conditions under wh
find the liter il became"> tha modition which normally
cue of greater ibntion than: might|| most-ah die troopigs, arg have-by-passed Hong Kong have We have every reason to be Altered through to this Colony
oduce intrarian-reibtina, mnd Adoubthat those Moljcts in 200 fàtercontinuof: forbigung tráda, ||JuBstion=WIN INA"
Turstipment, overseas.
These enhanced figures have local pollde and meant a greater tonnage of ships vicarwall mattijaln
•Hong] undeyrarty, elrolimantan
Moading and unloading.
ctors, but particularly|| abp
tlan to Hong Kong Hot
Tonk Bavo: brought the
an unprecedented conges
Churuus locale warehouses?
some: eleniwatt/Of falkanHavu, from. mored into barter,
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