IL
TRADE and
THE CHINA MAIL, MONDAY, MAY 2, 1955.
COMMERCE
SECTION
COLONIAL DEVELOPMENT CORP
Chairman Anticipates Bright New Era
From Ronald Boxall
London, May 1.
The Colonial Development Corporation has entered into a new-and brighter-phase of its chequered career. For the four years since Lord Reith took over the chairmanship" the Corporation has been preoccupied with the "serious and sickening" task of limiting and reorganising its activities. Now again in Lord Reith's words "the emphasis has swung towards looking forward instead of backwards." The proof of this is that last year CDC "came very near to breaking even on current operations."
Lord Reith's report makes diverting reading. He does not hesitate to criticise Her Majesty's Government if he feels criticism is deserved. His language is not that of a civil servant. But he gets results.
N.Y. COTTON In various parts of the world to
MARKET
REVIEW
By William Plunkett
own limitations compensate built up an
and tries
to
for them. It has cineten staff ct
whenever
Malayan Tin Production
Singapore, May 1.
Official statisties issued here showed that the prU- duction of tin in Malaya for the Brst three months of this year totalled 337,615 piculs which was more than 700 tons aver the corresponding figure for 1954.
In March the production, of iin-metal amounted to 5.189 tops
Coal production for March was 18.222 tons, and bauxite production 14,181 tons. (337.615 picuts- approx. 20.334 LOTIS).— France-Presse,
HONGKONG
STOCK EXCHANGE
Adverse Factors Affect
London Markets
From Our Own Correspondent
London, May-1.
The general election and the implications of the Budget are compelling factors in the London stock markets at the moment. The former keeps down the volume of business and the latter ensures what little is done is by sellers rather than by buyers.
In these circumstances prices, especially in the gilt-edged section, took a hard knock last week.
The weakness of gilts was marlly attributable to selling ci short dated stocks by banks
needing to restore their liquidity NEW YORK
ratics. Sellers have not come forward to absorb this stock-
Government broker cannot
pase of Mr Butler's sterner
and money policy
private | institutions and investors will not because they fear the down- !ward movement of prices stil
has some way to go.
Unlike most of the score or so of similar organisations that have been set up since the war
its own; but excellent though it From Our Correspondent) because it would defeat the pur- channel
capital, into under is there are things it cannot do. developed territorits CDC has CDC therefore tries the disadvantage of being com- pelled by its terms of reference pay 113 way. Losses on un- seund projects must in the long run be made good but of the profits of successful ventures.
From the British taxpayers' point of view this is all to the god but it accounts for more of CDC's headaches than any other
[actor.
more UNFORTUNATE
New York, May 1. Cotton futures trading
became last week two-side in a less active market.
PROSPECTS
Business done on the Hong- possible to associate private en-kong Stock Exchange this morn terprise with its projects.
ing amounted to $388,026.20, Noon quotations and the morn Established industrial con-
technical knowing's transactions: cerns have the
To- how: CDC has the money.
they can achieve much gether
EANKS impossible by that would be
either geting slane. So all seven of CDC's new projects last year were undertaken in association with private enterprise.
But CDC dces
simply hand over money to private enterprise and invite it to get on with the
Cor- job. The poration encourages it to put up some of its own cash. This way its demonstrates t
not only And confidence in the project but stands to make a financial loss
prise fails,
ماز
Two-thirds of is £10 million accumulated deficit arose out of At Friday's close the list ruled "unfortunate" projects started 39 points higher to 34 points before Lord Reith took over and lower (or up $1.95 to off $1.70) subsequently abandoned. a bale compared with the pre-his
this financial millstone" ceding week.
management The prompt ab- something the new sorption of May delivery notices would like to rid itself of Theong with CDC if the enter-
by southern mill interests and
other trade accounts tightened
Government
agreed to waive interest on los capital but re-
on old crop fused the Corporation's request
up the situation"
months. As the week drew to
o
wipe out the old debt
a clase, the May open position altogether. approximated 30,000 bales,
INVESTMENTS
SHARES BUYERS SELLERS SALES
213
1030 1040
35%
TV 1340
HK Bank... 154 154)
East Asia
INSURANCES
Union Lombard DOCKS, ETC.
K. Wharf 23.70 24.16 500 24 12 300 a 12 Provident 10) 11 80 Wheelock... 7!4 2000 x 7.30 LAND, ETC. Ink Hotel HK Land
Humphreys
XRTS
Healty
171-17.00 2800 - 17.00
67
2912 6 67
5109 005 5:0
16.20
2.13
The gilt-edged market is also losing business
that might otherwise come to it because some industrial companies are investing their
surplus funds
STOCK
REVIEW
By Elmer Walzer
New York, May 1. Railroad shares featured
in treasury bills, now yielding a wide-moving stock market over four per cent, and other last week, stock outside the exchange...
נו
UNUSUAL PATTERN
Selling of short dated Government stocks and the abence of buyers has resulted in an unusual pattern of yields. Shorts yeikt from over four per cent for the earliest maturities, mediums substantially less, and irredeemables again-over four
A per cent. belief that long dated stocks must soon rise to restore the normal differentials is a further reason for the pre- 10001435 sent cautious
anitude ofi 1000 or 40 investors. 2000 14.80 33 500 38
1.000 ve 381⁄2 500# 383%
UTILITIES
Trzm Star Ferry 2120 21.40
mati Ferry 107 108 450 m 108 C. Light (0) 18.60 18.50 2800 - 18.10
1077
government policy
Another one of CDC's func- tions is to invest money in The matter has now been other people's
projects.......i loan. to £8,000,000 is now on Trader attention in new crop pigeon-holed and is likely months become distracted by remain so for a long time to 13 undertakings concerned with
In the meantime Lord' uncertainties over
future come.
power, communications comments on price Reith
somewhat housing in territories as widely
statutory testily: "CDC has а
as Malaya and the separated
to
JB
and
•
Electric
Macao Elec.
XD Telephone
INDUSTRIALS
Cement Hope XD... 15.40
STORES. ETC.
Dairy XD... 20.70 112 20.20 2015 20.00 Watson 12.30
10.80
32 32
4000
321)
4003 32
1000
32
29.20 29.40
2
L. Crawford 2311⁄2 COTTONS
future."
supports, production controls and the question of a subsidy for obligation to pay its way, taking West Indies. Last year these with another; until investments brought in new colton exports. Pending one year
the £340,000-"an clearer view of the outlook, reasonable relief is given
income which traders curbed market part-legacy of the past must be cipation in the later sessions. factor in CDC's policy for the gives the Corporation additional freedom of manoeuvre in taking
elsewher:
and
has enabled
early
doubtful schemes For the Corporation the
chance to prove Liverpool
other new question of what should be done be given a
£6 million deficit themselves beyond what would the early selling about the crop months,
Ecen justified." surge from that direction coin-piled up before 1951 is a matter otherwise have
success of these policies with
SELLING SURGE
לגום
cided
proposals
Senale group to expedite.
of
principle. As the ajol the on the old debt has been
interest
risks
he
sale of 300,000 bales of surplus it is not a physical Shows
up in the results. Lust
reduc-
The mid-April parity' price- showed an unexpected tion. The government plan Fate will be determined on the basis of the July parity, the month-to-month changes now are followed by increasing in Lerest.
financial
SOME DISCUSSED
year for the first time
a net income
ncluding
from
are income of £1
had
against a 1953.
Fil-
Hort
Texte Corp 5.70 3.85 5000 2.574
8,320 Nanyang....
MISCELLANEOUS
Yangt.... 6.20 0.30'
Singapore
Stock Market
colton overseas, and a recom-the "milstone" is an mendation for a subsidy to pre-ment rather than a vent a further cotton surplus burden. Meanwhile there
other more accumulation, «
pressing problems loss of £130,038 in
rent projects teen of the 56 Current for the Corporation. to face...
Teached have now
the trading stage and these brought in a pront of £280,000 £70,000 more than the previous year.
Atter
and administrative Some of these are discussed in
expenses, but before Lord Reith's report The fore other mast is the question of pro- allowing for colonial income tax viding amenities without which and Government interest show a net loss some new enterprises cannot ge
accounts the year of only £85,946. compared with the losses CDC experts may decide that £403,334 in 1953 and £838,277 project offers a reasonable re in 1952-London Express Ser turn on a capital investment of vice. say £500,000. But if as often the case. further expen ditures of £100,000 is required. for the provision of essential
houses arkd
The latest parity of 35.22 ahead. cents for middling inch cof- ten was down 12 points from margin but up 13 points from a year ago United Press.
Sugar Export Quotas Raised
is
welfare nities for those who are to
return on the bigger capital may be too small to make the
and well conceived
London, May 1 thing worthwhile. And so many
Because of the tight supply position in the world sugar
trade, the basic export tommages/ices are stillba
of the producer countries which
simply
But CDC does not ere members of the Interna pose the question; it has what
tional agreement have been raised by 10 per cent,
the In-
Council's
the for This of
Group Demands
Passage For Bills
New York, May 1 It believes to be the answer.
Forty-six prominent citizens બુડ "Here," says Lord Reith,
for co-ordination of two today urged their fellow Ameri cans to demand passage of two
considered
and
in
me tire and CDC." The associa. Congress to extend the Ro
would crableí
Singapore, May 2.. Brokers
today quoted the following stock prices:
Opening 30/6 British Borneo Petroleum - Consolidated
Smelters
20/6 Ord Fraser & Neave Ord
$1,27 Fraser & Neave 14 pe cum
PIT...........
..!.. $3.50 Hongkong Shanghai Bank 3815 Malayan Breweries
$177 Raffles Hotel
Singapore Cold Storage South British Insurance Straits Trading.
Straita Steamship
Government The
securities Index was down to 07.14 n Thursday compared with 98.90 a week earlier. Prices stiffened on Tuesday on the firmness of sterling and the improvement in Britain's terms of trade, but renewed selling put them down again next day.
The all list showed a rise of nearly 1 points on average while other averages were up only a trifle.
The market ignored a hike in margins announced after the moved close a week ago and higher on Monday and Tuesday.
"On Tuesday he Industrial average set a new high for all time and rails were at their best since Oct. 20, 1929.
Declines on Wednesday and Thursday wiped out 7.45 points of the industrial decline, and a smaller portion of the rail gain. The major groups rallied on Friday on reduced volume.
· GOVERNMENT THREAT
Page
EVERETT LINES
EVERETT ORIENT LINE Fast regular freight refrigerator passenger service to Korea, Japan, Philippines, Indo-China, Siamı, Malaya, Rangoon Calcutta and Chittagong. "REBEVERETT"
Arrives May 5 from. Singapore, ; Sails
May 3 for Kobe & Yokohams,
“NOREVERETT":
Arrives Sails
May 21 from Singapore, Atay 22 for Kobe & Yokohama, (Accepting cargo for transhipment Kobe/Pusan, and Kabe/OkinawL),
EVERETT STAR LINE
Fast regular freight — refrigerator service to Japan, Malaya, Colombo, Bombay, Karachi and
Persian Gulf.
(89)ject to mducemens for- diract call Korea),
"STAR ALCYONE”
Arrives
Sails
"THAI"
Arrives Sails
May 14
from Singapore. May 14 for Kobe & Yokohama,
May 18 from Japan. “
May 19 for Singapore, Port Swet- tenham, Madras, Colombo, Karachi, Bashah, Kuwait & Bahrein.
́(LIMITED PASSENGER. ACCOMMODATION)
(Accepting cargo for transhipment Kobe/Okinawa) Kobe/PusanN
And
EVERETT STEAMSHIP CORPORATION S/A (Incorporated in 'the Republic of PataIRA with Limited Liability)
Chinese Department: Telephone 28293. Queen's Building, Telephone 31206.
PENINSULAR
QUIS NOS FERSABIT
& ORIENTAL
STEAM NAVIGATION COMPANY
R.M.S. "CARTHAGE"
SAILS:
NOTICE TO PASSENGERS
There was a tendeney to take BAGGAGE: profits from time to time on the theory the Governmeņ; agencies were aiming steadily to curb the
The industrial, share market was unsettled by a fall of gilt-arket rise.
while the threatened edged rails strike and the publication
The news of the week was considered highly favourable, of the Socialist election mani-condsing of higher production. increased carnings and some dividend hikes.
.
movis
new did
festo foreshadowing nationalisation nothing to brighten the outlook.
INDUSTRIALS' DOWN
The steel companies, notably US Steel and Bethlehem reported The Financial Times indus-record first quarter earnings:
these units were
not trial share index fell from 187.7 But
Big to 183.9 in the week to Thurs generous with dividends. day's close. It would probably steel held its dividend at $1 a have
fallen more had it not share. Bethlehem declared $1,50′′ been for some.. excellent com- which compared with a $2.25 pany results which put a little payment in the first quarter of heart into the market.
1954 and $1.25 a share for each of the last three quarters of 1954, Outstanding among these was the announcement by Imperial The Street had anticipated a Chemicals of group profits at a stock split for Bethlehem, and new record of £271⁄2 million had hoped for more in the way over £10 million more than in of dividends. Bethlehem stock the previous year. The divid-plunged 8% points on Thursday end has been raited by. 2% per when
made the report was cent to 20 per cent.
public before the close of the market.
million rise in group sales to
$2.80
$1.75
An interesting feature of the ICI statement is the
£70.
14224
Unlied Engineers Ord
$2,72
Petaling Tin
Hongkong Tin
1/0
$40
Batu Lintang Rubber
$145
the
Kempas
Lens Rubber Estates
Wearme Br
New Serandah Hubber
3,900,000TH CAR
£353 million. But shareholders Automobile companies. $11.25. | were not left to enjoy the con" responded only meagrely to templation of sales at a rate of recent automobile production.
£1 million nearly
day For statement coincided
The auto industry next Wednes- with $2.47
the publication of the Socialstay will produce its 3,000,000th $1.90
manifesto 31.0
which places the car of 1955, the earlier in history.
this figure has been attained sq chemical industry high on the
-5 ex÷dly-China Mail Special.
U.S. RAW COTTON
EXPORTS
ternational Sugar Council, an- ristruments of colonial develop bills now being nounced today.
colonial development Total export quotas for this
ciprocal Trade Agreements Act year will thus be raised from tion of HMG and Corporation and to ratify United States 3,708,000 metric tons 10 4,153,500 Capita! "is a sensible and over membership in the the organisa-
due cbjective; it
New York, May 1. Raw cotton exports by de things to be done which cannot tion for trade co-operation.
Their statement said that the stination as reported in bales by bills were needed in the form the New York Cotton Exchange in which they were now offered for the 1954-55 season to April 40 bolster
our strength and 26 were as follows:
Britain the strength of the nations on Continent our side in the world conflict of Orient. Ideologies ?
༣་་।་
metric tons. The action acnounced today was the now be done.. result of a decision made by the executive.committee in its meet-
inga during the first week of
NOT YET
April. The increase represents an addition, on paper, of 444,300 So far, however, nothing has melric tons to the supply posi-been done to implement this 1on..
proposal The difficulty here is that HMG does not say how PRIVATE ORGANISATION Tho following producer-CD and W. funds are to be
the colonies themselves Mr Lauls Pink, Chairman of Citizens Conference on export the following additional
are approved, HMG makes the International Economic Union,
countries will now be able Vecide that and if their ideas the
Belgium
Bow value (metric ton money available. But one deals: R.Private organization issued a
5,000 that it cannot be long before plea on behalf of the group. 17 Sod Lord Reith's suggestion, is. 60,000 225.000 adopted for its logic is on-
27 Bodafeallable.
Bruril Гострова
Cuba
Czech
nican Repubüc
: 60,000
land
B. 3.
"It is urgent that this b01
passed without amendment.
Coneda Total for period: Same period last yea
list of candidates for national-early. sation. ICI sharts ended the
Best performers when week 144 lower at 43s 11⁄2d market was on the rise included
the
Losts among other industrial metals, shipbuilders and other
special issues. shares ranged to 2s.
cils
In the other markets
Amusements picked up. To- were
firm until Friday when baccos ran up to new highs in Gold several instances in higher prices fell back sharply.
Cornings and Indications of a shares and coppers improved.
pickup in cigarette smoking Rubbers were in demand but after the recent cancer scares
United Press. teas were depressed.
MESSAGERIES MARITIMES
PO Box 53 Queen's Building Tel: 2685 | FAST PASSENGER/FREIGHT SERVICE JE
Balling May 21st sailing June 18th
Exchange Rates "CAMBODGE"
Business Man done in the Inesi unofficial exchange market
at the following Tote B the defeat of this bill would Pri (per 11.
6,81. The new thinking that has destroy GATT and would be an sterling notes (per £1) 10* "PEIRO"
er 10031.40 gone into the Corporation's ac invitation to trade warfare Indonesian rupiah #per 444,500 yities shows tip in other parts among the world's free nations." Bamn ticals (per 100) BIR HAKEIM”
Singapore (Straits) villain at the report CDC realises -Reuter
*Judo-Chin@"plastros: (part-ton)
22.005
20,000
Presz
FAST FREIGHT SERVICE CENES
calling May 12th Balling June 25th
Thursday, 5th May at 12.00 Noon for the UNITED KINGDOM via Stazits, Colombo, Bombay, Aden and Port Said.
Passengers are requested to send ALL BAGGAGE to the Hongkong & Kowloon Wharf Co.'s Godown at No. 2 GATE, CANTON ROAD ENTRANCE, by Noon on Wednesday, 4th May.
SPECIAL NOTE: With the exception of hand packages carried by passengers themselves, ALL BAGGAGE must pass through the Wharf Co.'s Godown for loading on board by ship's slings only.
EMBARKATION: Passengers should embark between 9.30 and 11.00 a.m. on Thursday, 5th May, 1955.
SUBJECT TO ALTERATION WITH OR WITHOUT NOTICE
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