* •
THE CHINA MAIL, FRIDAY, MARCH 18, 1959.
Pago
HONGKONG BANK ANNUAL REVIEW
Economic Activity Shows Signs Of Slackening CHAIRMAN'S STATEMENT
Vietnam's
7pc Fall JAPAN'S CONCERN WITH
GROWTH OF CHINA'S POWER Security
In Trade
Hongkong's trade in 1858 showed a decrease in value of about seven per cent compared with the previous year, mainly
due to a fall la imports, -as ex-
poris remained at about the imo level. Total trade amount-
Imports at HK$4,000 millions and exports, at HK$3,400 mil- lions, China, continued to be
General economic activity in the Colony showed some signs of slackening off during 1958, but the general level was still satisfactory, Mr Michael W. Turner, Chairman ofed to HK$7,600 millions, with the Hongkong & Shanghai Banking Corporation told shareholders at the annual meeting this afternoon. He made this statement in the course of a lengthy annual report on con-
ditions in countries in which the Bank operates.
Mr Turner said the slackening economic activity here was because of less
favourable conditions in neighbouring territories.
Mr Turner also revealed that for the first time for some years total bank clearings showed a decrease over the previous year's figure and were at about the same level as in 1956.
Fow countries are more directly concerned than Japan with the emergence of China as an industrial power, no the Chinese mainland is Japan's most natural source for industrial raw materials and the competition from Chinese manufactured goods in Southcast Asia markets is a threat to her export trade which seems likely to grow in intensity. Private discussions took place in the early part of the year, with the object of concluding a trade agreement between the two countries, and at one time it looked as if these would be successful. When it became clear, however, that diplomatic representation would not be granted to a Chinese trade delegation in Japan negotiations were broken off and direct trade between the two countries virtually
*
prices,
Improves
The political altuation in Vietnam shows little out- ward change but security conditions continue to Im ceased.
prove, due to a large extent This was a considerable blow the foreign exchange reserves | business is picking up. Whole- to the development of more the Colony's largest supplier to Japan's economy, particular at the end of the year were sale
the production refugee settlement schemes, and Imports from this country ly in the Osaka area, at a time US$881 million,,
Drisc
of anders and exports all started supported by government increased by about one-quarter, when purchasing power in some US$337 million during the year to rise, while letters of credit with most other areas showing of her markets in South-east in spite of repayment of opened during the last quarter grants, in the outlying re reductions, in particular Jopen Asia was falling off. R has US$125 million to the Inter- for imports showed an increase gions. American assistance and the United Kingdom. Ex-recently been announced that national Monetary Fund, Indus- of twenty per cent over the te an important support, ports to Japan and Indoncala there
Д possibility of trial production,, however, de- third quarter. The outlook for but progress in providing showed a drop but this was negotiations being resumed but elined and. although the drop Iron and steel and shipbuilding made up by the United States and
by higher purchases there is likely to be some hard its value of commodities is much brighter but the textils for the day when this is no the bargaining before agreement is benefited Japan's terms of trade. and fertiliser industries stil! longer forthcoming, is very United Kingdom. The balanco of reached.
the main cause of the improve- remain somewhat depressed, slow, as industrial develop- trado with the last mentioned The elections in May resulted me the balance of payments Whether this general improvement schemes take a long countries, however, still remains in the return of the Liberal- was a reduction in imports par- ment will be maintalaet re-time to maturo, ? unfavourable to Hongkong.
Democratic party. with
Mrticularly
of Industrial raw mains to be seen, but the un- Kishi in particular considerably materials. Imports in fact fell ward trend in demand strengthening his position. He hy about one-third whild ex- Europe and the United States Exports of Hongkong pro-was thus able to form a new ports maintained the same should bógin to make its In- International relations have the decline in the United States at the Commonwealth Trade
ducts showed a rise of about Cabinet in which it was clair-level as in 1957 and were unable fuence felt, while China followed a pattern which has gold reserves, this has resulted and Economic Conference ai
over frst year's ed
that factionat differences to show the steady growth proved all too famillar in re in a lessening of the postwar Montreal in September, when Ave per cent
of recent months has been les United Kingdom | were considerably reduced, previous years. cent years, with nerious inci- dominance of the dollar, and the United Kingdom announced figure. The
active in her sales in South. dents in both
Statistics relating to unem- cast Asian markeis Middle the resultant strengthening of proposals which would increase continued to be the best cus- with only the Foreign Minister
a factor his previous East and the Far East. Some other major currencies tas the flow of capital to Common-tomer with the United States in remaining from
ployment in Japan are some- which should benefit Jupon encouragement
perhaps brought con
the now what unreliable, as in a great even wealth
and Canada second place, and the increases team. The course of countries
If It may be only, tem- these countries more than administration seemed to be set many cases be found in the fact that many
promised additional aid through
workers become porary. to fair until in covered the drop in exports 10
October the of these explosive situations
under-employed
than the Colombo Plan.
Aslon
territories, particularly Police Duties Law revision bill did not develop into something
Indonesia. Nearly five hundred
being
work put introduced which Was WOTSC, but unfortunately the
now factories
the In- The rice crop turned out to large. Exports also fell by bout were registered
altogether, but
in стеде
unemployment be the second largest in Japan's one-third in value, with the two during the year, a rise of about one-third compared to 1957.
must I think have
been history and would probably | main products, rubber and rice,
.V
THE WORLD
the
basic caures which brought the troubles to a head have not been in any way eradicated. Economic rivalry between the 1wo blocs continued to grow, and the recent, strides made in Russian technology and Chinese production have not been without their influence on the uncommitted nations.
In France, the collapse of the Fourth Republic, and the silmulating leadership of Gen- eral de Caulic, have wrought a transformation' in her political and economic condition, but the settlement of the Algerian ques- tion is still far from assured.
Expansion
When we turned to economic affairs we and more encoursg- ing signs, and it seems that the world is moving forward into period of renewed expansion,
בזם
about
more balanced world economy. The concerted European move at the end of the year making their currencies freely conver-
tible for non-residents
Sterling
WEB
♫
SCENE
to
to
years Igo
Exports Up
the
Was
rather
out
of
Rice Crop
from
In
Imports Fall
Although the total of importa for the first eleven months of the year was reduced by twenty per cent, compared with tha previous year, the surplus over exports continues to be
very
greeted with a considerable de Free of opposition.
Handicapped quite considerable, .On the bave been better still but for both running below the previous
The annual meetings of the International Monetary Fund, the International Bank and the practical manifestation of this International Finance Corpora improved state of affairs- tions were held in New Delhi "an outward and visible sign of shortly after the Commonwealth change showed a slight increase Business on the Stock Ex-
There 15 no doubt whole the deflationary polley the bad weather during the year's figures Importers con- the comeback of Europe ini Conference-the first time these
the war the palice would seem to have been sue- harvest," world affairs," to quote the meetings have been held in over last year, but the volume that since
On the whole the economy Unue to have difficulties in dis- words of the managing director Asia, Many of the speeches of no sign of a return to
Is still not very large and there have been soverely handicapped cessful and has resulted in a
in their efforts to deal with do more healthy balance between enters 1950 in a fairly strong posing of their stocks as the of the International Monetary the delegates paid particular more active conditions of some monstrators, as
present they supply and demand, Advances position to take advantage ofmartcet remains sluggish, due to Fund.
attention the necessity of
are prohibited from taking pre-by the Bank of Japan to the any Improvement in world local purchtsing power being so Improving the standard of living
The new bil banking system, for example, economic activity The prob low and it is estimated that Land values
Įventive action. tended to de- would have greatly of the less developed countries cline during the year and it their powers and permitted them
Increased have registered a sharp drop. lem of developing now and there will be a further reduction From October anwards there active export markets however of about atteen per cent In Im- and at the same time gave
signs that remains as pressing as ever. friendly advice on the obliga- looks as if the demand, which to act both in private premises have been various
hak been so strong in recent and public places if there was tons which these countries must years, is now less active.
a clear and present danger, of i For the first time for some publie funt was reached in principle years the tots!
disorder. There pro- bank clearings posals were strongly opposed by showed a. decrease
the over
both the Socialist party and a great part of the public as well, and the Prime Minister in Nov- ember Anally bowed before the storm and agreed to shelve the
Although it would be unwis
The Improved status of sterling in particular is of the greatest importance to our bank and we can but hope that this time there will be no turning back.
Unfortunately, the position of the primary producing coun-
more
further foreign capital. Agree
if they wished to attract
at these meetings, and was previous year's figure and were subsequently approved by the at about the same level as
executive directors, to enlarge the resources of the Fund and to increase the capital of the Bank. The latter should enable
Capital
1950.
1a
Colony's Finances
The Gounelal position of the
усать.
bili.
The Philippines
which the
10
ports during 1939.-
Rice Purchase
The current rice erop in ex- pected to produra a considerable exportable surplus which, it st Jean be sold, should show a bel- tries has not been so happy as
ter balance between importa and The present prices
administration, exhortations have been made of their commodities, although in some cases showing
after a year in office, has not this time of year before with exports at the end of the year. improvement, are still low. The
succeeded in solving, the foreign out any noticeable effect and The internal price, however, is the Bank to raise further funds Colony continues to show the to attach too great significance self merek
exchange problem which is It Congress has
been more terms of trade which proved so
in- too high, and it may be neces- favourable
symptom of a clined to approve expenditure sary to for
United in the capital markets of the steady Improvement which has to these developments there is much the
grint some form of Kingdom naturally
reacted world to meet the ever-growing been such a feature of recent no doubt that public opinion dition. It is true that restric-raising the necessary revenue,
graver economie, con- than to pass the measure for subsidy if overseas markets, are adversely On these countries, demands for loans for develop-
For the current rear a made Its influenco felt as never tion on Imporis has halted the
to be found. if probably at a slower pace. The most of which suffered balance ment, while the former will surplu of, at least HK310
This result in larger resources being millions is now expected, 'bs not factor in the
before recession in the United States, of payment difficulties.
and was the deciding rapid fall in the reserver, There is perhaps more reason Course which which was such a dinger in for hope this year, as a mission which
mado available to meet any only was revenue buoyant, but events took. Three members of 1957, but as long as delelt from the International Monetary was giving cause for trend was aggravated in some concern at the beginning of the cases by the
rnold short term currency discuities once again expenditure on non- the Cabinet have since resigned, financo year, proved to be the most delivery of capital equipment Both these proposals will help recurrent publie works
continues any signt Fund has arrived in the Philip- Was and although Mr Kishi was re- severe since the war, but it was due to the slackening tempo of the less developed countries. considerably lower than was excently re-elected
Alcant Improvement is unlikely. ploes to study the position an president of In view of the administration's the spot.
The budget for 1889 is ex- fortunately of short durşilon. Į industrial activity in the mana-
pected. In fact this is the the party for a
Meanwhile, the respected to be in balance at about further term, The effect on western Europe facturing countries,
twelfth consécutive year In the strength
disinclination or inabliity of the opposition adopt the
to discount rate has been raised was much smaller than was at
The past year has, in fact, The enlargement of the re- which there has been a surplus, has weakened his position and
necessary austerity from 44 per cent to 04 percight per cent higher than 1958. Increased expenditure will MORGUITS, one time expected, although in- shown very clearly how depen sources of the Fund is perhaps and revenue is now double what it is clear
aiono cent per annum, and the reserve mainly be used for development that the factional ** to dent
will the
balt dustrial production tended
jess developed of more immediate advantage it was seven years ago, although strife, which
increasing which banks are required has for so long
projects connected with agricul- decline. Exports to the United countries still remain on the to the industrial countries of there has been no major change prevented the inking of decisive nation, it is perimps not sure hold against their demand
ture and the setting up of light Stules
the other hand, prico which can lie obtained for western Europa, but as fresh in taxation, Since the war all action on controversial matters, prising that applications for afallabilities has been Increased.
Industries, such as sugar renning showed no sign of falling off, their commodities, and to what capital can only in the last expenditure, recurrent and will continue to be as active as
from international agencies re-
and Relations with the ceive lukewarm receptions, and whille a considerable outflow extent a severe drap in that resort come from savings, the capital, has been financed out ever.
paper mills, where the raw United
materials of gold from across the Atlan- price can more than wipe out
the visit to the United States are
are availible locally, return to economie health in of revenue, apart from a publie
going through le benested the reserves of the the benest which the ald Europe, where so much capital loan of HK$80 millions fooled
States of the President of the difficult stage and the respec- In his budget address to the In November the engagement Republie and the Governor of ve ambassadors, have bore Ngo Dinh Dien described his National Assembly, President sterling area and those of supplied by the United States has been generated in the past, in 1948 and a loan from the
The several European countries. and other sources was expected can only be of benedt to the United Kingdom towards the of the Crown Prince was an- the Central Bank achieved only called for consultations.
While it would be unwise to to bring. This problem was countries of Asin in which our cost of the new airport,
nounced and the marriage is a limited success,
American bates in the Philip government's polley For the financial year 1950-80 expected to take place in April.]
pines are the main cause of agricultural field as simed exaggerate the importance. of given considerable prominence main sphere of activky Iles.
revenue is expected to remain | Traditionally
The budget for 1800 is ex-friction, and this subject has extending the area under cul- at about the same level but the heir to the throne has been pected to be balanced at the re- been under discussions for some tivation and increasing produc estimated expenditure shows & selected from one of the half cord figure of P1,280 million, years, President Eisenhower re- tion. The agreement, recently substantial increase, which will dozen families closely associated with one-fifth of the revenue cently described the differences signed with the French Govern produce ndofleit nearly, with the throne, and the Crown being raised from additional as "psychological" and it would ment, for the purchase of rice HK$90 millons. The Financial Prince's choice of a commoner taxation, including a twenty-five be surprising it some settle-lands belonging to persons un- The publicity which Hong greatest impact on world mar- by either side, but I hope that Secretary considers it
French jurisdiction, will more is another sign of the slowly per cent premium, on the sale ment were not reached fairly der kong has received during the
it will give a little breath- Bikely this year that the money changing pattern in this basical- President has made it clear that both countries doubled the per-distributed under the agrarian
of foreign 'exchango. The shortly. From January 1, 1950enible these rica lands to b past year, while focussing la- If conditions today are looked ing space which will enable voted will in fact be spent but conservative country, férest broad-off many hear from this historien back this question to be considered even if this should turn put to the comic measures taken in his view "the need for fiscal centage of the standard, - duly reform programme, while, the Colony's 'activities,
not ground I think that on the in the future rather more ob- be the case, it is perhaps not in 1957 to curb the boom, which and economic stabilisation is which will be charged on ion-improved system of agricultural been without ils embarrassing whole the record is one of which Jectively than has been the surprising that apart from a was threatening the balance of urgent" and
and the has once again ports from each other in ac- credit
programme features Many of the reports we may be justinably proud, Ease in the past, I should like few minor adjustments there is │payments, were successful in urged Congress to repeal "the cordance with the gradually in for improving communications
w-given-fair and factual-That-dona-not-mean that every, to pay tributo, to the fact and increase in taxation.
their Immediate. objective and ng dollar impar law. Sallax creating sale arranged in pubs, should...... plan. benefi thing is perfect or that labour | patience displayed by the mem- conditions in all cases whatbers of the Hongkong negoti- they should be, but steps have ating commitice, which had already been taken to Improve considerable difficulties to over- these, and I do think it is fair come locally in reconelling the
HONGKONG'S PROBLEMS
accounts of local conditions but a great deal has been written from a partisan approach which has been totally inaccurate. When one looks at conditions in Hongkong today it is essential
be, faced, and to consider how these have been overcome.
and
keis.
to ask that criticism of Hong-different points of view of the
The rising volume of ex-
Royal Marriago
the wife of the
that
CONDITIONS IN CHINA
inids.nl
dlet.
In
population.
the
at
Cambodia Adheres To Neutrality
to turn back a little to find out kong should be tinged with various interests Involved. I how the present altuation has a велье of realista
and satisfactory that the Minister. China has been engaged year *"more than 99 per cent of | resolution went on to warn doubt aimed at increasing the developed, to examine the appreciation of what 1s pay- of State at the Board of Trade during the past year on what China's peasant households" against "any premature attempt | supply, particularly of female various problems that had to sible under the circumstances recently stated in the House of is described as "the great leap have joined.
to nogate the principle of to Irbour. It is clear, however, that as they exist. The reporta
Commons that it was not their forward" and figures issued by of
Complementary to this policy such according to his work' and the attempt to Introduce this the members of the parlamen- intention to sponsor similar
was the development of rural replace it with the principle of radical change in the country- of the official agencies ahow a tary delegation, whias wo were prrangements in respect Rise And Fall
tremendous increase In Indus- industry. Small production units, 110 each gecording to his needs"." side, to increase crops by deep very pleased to see here in the other exports from Hongkong.
trial and agricultural produc- many of the coltage type, were in conclusion, the various com-ploughing, to operate small blast Before the last war and im- |autumn, were an example which Slackening tion. Much statistical informa-set up in all districts, and in mittees were urged to make use furnaces in the villages and to mediately after" Hongkong might well be followed by
With conditions not so favour- tion is now published at tre-villages and towns rapidly of the winter months to carry improve mural irrigation-all at peted ** entrepot for trado others.
able in neighbouring territories quent intervals which shows constructed blast furnaces turn-out an overall and thorough the same time has proved more. with South China, supplying Visit To Colony It is not surprising that general that in practically every feld of ed out pig Iron as a first step Inspection." iteports of increased than the economy can bear.
The internal political situation that area with the imports
economic activity in the Colony production targets have been in the drive for more steel, ratloning of foodstuffe end the spite of this setback It cannot which word required marketing the olls and other ports of colton textiles to the showed some signs of slacken- surpassed, while reports from Output of coat is reported to culty of the expert corpora- be denied that what has already continues very much as before
dotions in fulfilling their contracts been achieved is a challenge to end the elections to the National' · ing off, but the general level various parts of the country have. Increased by over agricultural. products which United Kingdom and the grow-still remains satisfactory. Build. describe the numerous projects per cent, much of it mined by abroad cre further evidence of other countries in Asid. How Assembly resulted in an over were exported. There was not, ing pressure from the Lan
public strain, but production targets fast it will be possible to con-whelming victory for the Popu- Ing continues on a considerable such as reservoirs, Irrigation hand, and numerous only a free exchange of mer- cashire cottor industry for the scale and it is estimated that work and railroad construction works are being completed at a published for 1669 make no tinue the process without sortos Iar Socialist Party In July chandise between Hongkong and Axing of ceiling, have been
speed by manual allowance for this and are about dislocation is not so easy to pre- | Cambodia recolted Commu~ nist China but the policy of South Chips, but the population the main causes of the publicity fifty percent of all domestic which have been completed or surprising
accommodation in the ban are under way.
labour with few mochanical third higher then 1968, of the Colony tended to rise and which Hongkong has recently area is now of postwar con-
The recently signed · trada | strict neutrality has not been -Even at one is not prepared to dall as economic conditions were past falled to make headway, low-priced housing remains na formed by the merging of small main
received. Negotiations in the struction. The need to provide Rural society, already tran The above are a few of the pecept all their claims at their agreement with Soviet Russia, in any way changed. A border
** features- relating to face value, and it is only socos- which will provide for the con- dispute with Thailand unfor The emergence of the Com-but in September a delegation urgent as ever and, in spite of units into co-operative farms, Ching'a development which sary to sixty the Chinese pressetruetics' over the next few years tunately resulted in diplomatic munist regime in China, to-ton Board visited the Colony all thot
from the United Kingdom Col
hos. been dono, experienced on even more have been continually steemed to find mention of Inaccurate of seventy-eight large enter relations being broken off, for
theprises covering metal, chemical, time between the two countries; from gether with the embargo Im-
Government conalder radical change by the organisa-in their own periodicals and statistical reporta and had discussions with al posed as a result of the Korean
that the number of squatters tion of the people's communes, until Decembar there was no country-alde, there is no doubt cont, and oil installations, makes but, thanks to the mediation of consider it clear that there le to: be no] a special representative of the war, however, changed all that, special committee set up.
now - remaining is at least ** Built on the basic rural ad-hint that, there would be any that there has been and not only did the entrepoteftate on behalf of the local great as the number which ministrativo aren, comprising turning back. In fact communes eble progrese in practically every turning back on the road to United Nations, a settlement
industry. This time it WOR trade fall off but the movement found possible, to reach agree have been settled,
about 30,000 people, the estab- were to be introduced at an field, and Industrial production greater industrialisation appears to be in might tr
British trade with Chira- of population tended to be virement and a ceiling of one Diversification Hhment of the commune re-carly date in, the cities, and this has showed a marked "increase.
mila in the whole activity of a was to be the final stage in the Those achievements have only during the first olevan months Trade for the first nine completats that have alstrict, agricultural, industrial, transformation from Socialism been posible due to a high des of the year showed considerable months of the year resulted in (with export considerable: adverso balaned ind of economic activity had yet one anots to been received from various cultural and military belar to Communism when wages and gree of centred direction of effort, improsement
ports of cotton placegoods
com-under central control, while private ownership would, dies which, has laid particular om more than double the previous due to a rise of about one-third 10, be developed to take the the Ualled Kingdom for re- countries with regard to place of the dwindling entreput tention there was laid down petition from Honstrong pro- communal turperion and dialing appear phasis on spood, but the trans year's dure and imperis up by in Imports compared with 19873 Trade with China and to give for a period of three: years: ducts have focussed mulisals on rooms enable the women to resolution of the Cens pars term in the country has one-third. An atoresting Although it dategories of goods mployment to the growing and the Hongkong Government the need for diversification of work as hard as the man This tral Committee of the been soverely atmined and dis- development has been the entry show come Inéséumparator number of immigrants. This agreed to set up the necessary local industry. There is, I think, movement which was stated Communist party published to tribulion hom inevitably sustered, of China, Jute the thipping mchinery, motor volia took fr the form of the elab mistrative machinery to a cirtain untication in this fonan provings in April werd the end of the press how Wod will pectably be more market when taking advantage tailles counted for us TERIOS pants of lant industries heure tut the limit was criticed but it le perhaps not pardadi rapidir aroughout the event as it clear that the pay surprising to shareholder who of the low prices ruling during part. The Corman cha Many of which have been most adhered to curprising that private capital Couples and wars dvon jeded could not forced and that are roquainted with pine be the year, partly by charter and balance how jucenatuando of these, the it was hardly to be expected should tend to concentrated on: IAPCURLStine military Petivity : 22900 máshould not be in huney that labour has been found to tresarly by purchase condone problemy colicheilinn mausty in the that "this" compromise wollia the production of the wall tried ingthe Formosan
reported that bo Esad by the ? Jurkusowe in the clues aɛThe rest of the communée was no been moquired." largaat vand has made the be received with enthumlar – MA Malyalakan carlising
'prosperous or the reverze,
to
tually a one-way trade. Under rundred and afteen million Cuch circumstances some other
tho
The