PAGE 2.
Chairman's Speech
Continued
In spite of these conditions the Central Government at Nanking have maintained their position.
Perhaps it would be better put if we were to say that General Chang Kai-shek, has maintained his position, since he is the power behind the
When Government.
Mr. T. V. Soong resigned from the Ministry of Finance last October there were fears that the" Gov- ernment would break up, but he reframed from going into opposi- flon and continued to work with the National Economic Counen, 50 the danger subsided. His resignu- tion was however a serious" loss to the Government.
CHINA'S FINANCES
HONG KONG DAILY
ly steady, but the greater part of It is retained by the Provincial authorities. Nevertheless there should be ample funds to pay not only the annual service of the foreign Salt Loan's but also some of the arrears, and it is regrettable that the record of the Sult Admin- | Istration in regard to loans should not be on a par with that of the Customs:
PRESS, MONDAY, FEBRUAR Y 26, 1934.
ports over exports. A great pre- ponderance of Japanese Imports is shown in the Customs returns, but these Agures and in fact the whole trade position of 'Manchuria should There be regarded with caution. are, however. a humber of signs which show that the prospects are fairly good.
CHINA'S RAILWAYS
יי .
The
Conditions or tertain of the Chinese Government railways again showed an improvement last year
The Nanking-Shanghai Rallway has been able to pay one interest coupon and its revenue has increased appreciably. Shanghai-Hangchow-Ningpu Rail- way has brought up to date the amortisation of overdue bonds and its prospects remain satisfac- tory. These two lines, with the Peking-Mukden Rallway and the Shantung Railway are instances de-showing
prosperous the Chinese rallways might be wete the country to remain undisturb
trade to continue ed and were
Turning now to trade, the most rellable index which we have in China is the Maritime Customs returns of foreign trade, but in order to make a true comparison of the 1933 Customs Agures with previous years it is necessary to make allowance for the exclusion this year of figures respecting the Manchurian ports, which last year were Included for the hrst six mouths. If we'd this, we shall find that the total foreign trade of the country that is of China excluding, Manchuria increased some 7 per cent compared with 1932 and, some 33 per cent as compared with 1931 which was a
The last financial report of the Goverment.
published WAS December 1032 and covered the two fiscal years ending June 30th. 1932. Since then, excepting for an outline of the Customs revenue, no official figures have been issued This lack of statistics is very un- Satisfactory"
However,
still centres upon military and debt expenditure--with whe emphosts, upon the former. It is believed to be tac: that once again
#1 roughly between 43 and 50 at the total ordinary revenue rean re- cognised sources was applied to This hus Lech military charges.
record year.
has
how.
1.......
is
in
Tower Of Strength To
Eastern Trade
MR. J. H. TAGGART'S TRIBUTE
TO THE STAFF
relations still one stage further. To effect this the commonsense point of view suggests that residence nearer than Peking to the seat of Government might be desirable. more particularly “in view of the fact that Shanghai, as a consequence of lis preponder- ating Importance in China,
kely to be a focal-point if not the keystone of sino-foreign rela- tions during the next few years. We know that those who have to deal with the many complicated arising ALE problems constantly Shanghal would welcome the op-
In rising to second the report, permitted to add a more personal portunity of more frequent con-
note, I would remark that a sur- sultations and advice: but we are Mr. Taggart sald:-- satised that Sir Alexander will Mr. Chairman. Ladies and Gen- vey at the Agures presented, when consider
of
in conjunction with the this themen: In rising to second the taken every aspect
very depressed and difficult trad- question and will in due course adoption at the Report and Ac-
ing conditions prevalling for the make the wisest recommendation counts under review. I feel con- fident that I voice the unanimous to His Majesty's Government.
period, bear eloquent testimony to
Let us
the fact that in regard to the now leave China and opinion of Shareholders present
many difficulties likely to be en- glance at business conditions in in stating that we have listened
other some of the
in with extreme interest to the com- countered by countries
the administrative head of this the Chairman which we have interests. In India prehensive survey
great organization. the mantle of that high office the main factor in the exchange has given us of the working "of market has been the
Corporation for the jost
could not. In the times through continued the.
which financial year, of world conditions which we are passing, have fallen In view of the notor!- unhindered.
large shipments of gold Other railways, have
in general. and in particular, of upon more capable have kept exchange up and en-
shoulders ously depressed state of the staple | been less fortunate. We under-
than those of the present Chier abled the "Government to fiance the trend of events in the Far Chinese industries it may surprise stand that a serious effort is now
cheaply. - Commodity prices as 21
East with the trade of which the Manager. (Applause). some of you to be told that the being made with expert foreign.
whole moved during the year
Interests of the majority of us are excluding assistance to review the, the finan- export all
figures--again
50 intimately sympathy with the trend in the
and Indissolubly know that the financial problem Manthuria actually show an incial position of all the Chinese
inked. United States and the future re- crease of 7 per cent over 1932 railways, and we trust that this
the maing largely dependent on though
remembered will produce some concrete resalts it must be
world that exports touched a very low and bring about the reorganisa- level that year. Imports are down tion of the present system, which The fact that permits the railways to be regard- about 12 per cent. Imports have dropped more than
ed as the plaything of political exports has of course had a far-
intrigue and as a perpetual source Durable effect on the visible ba-
of supply for military voracity, trade, which In 1933 External causes have little or ance of
imports of nothing to do with the deplorable an excess of $733 millions is compared with the accumulation of debts оп many previous year's excess ot #862 of the railways. China has only millions including, and $955 herself to blame. With efficient i millions excluding, the Manchurian management and the elimination
This adverse balance so bolitical interference the Goy reduced by the outflow of treasure ernment would soon be able to which according to the 1933 Cus-wipe" out the stigma of default loms returns reached 83 million and would find that her formal dollars in value. The embargo on guarantee would once more be a
however, greater than was anti-
deplorable the export of gold except with valuable asset.
cipated a few months ago, this notwithstanding the Government sanction still remains Work on road-buliding has con- being due partly to the unexpect-state of trade during the past two years...I should like to com- in force, but it is believed that tinued actively during the pasted decrease in silk exports in the pare briefly certain Balance Sheet smuggling of this metal out of year generally under the super- latter months of the year as the ngures at the 31st December, 1933, the country has been very prevision of the National Economic result of unfavourable conditions with those at the end of 1931, In valent though gold stocks must "Council. There are now said to
in the United States, and partly selecting the latter year for com- now be at a low ebb:
be nearly 16.000 miles of first class
to heavy increases in imports of
parative purposes. I have been roads in China and the work done
raw cotton, wool. iron and steel,
the fact that the prompted by "An outstanding feature about the respective Sterling exchange rates in the provinces centering on
Japan trade has been the opposi ruling were practically identical Nanking is certainly opening up The boycott of Japanese goods the country in a remarkable way.
tion aroused in many countries by the rate being 1/51 for 1931 and is no longer of serious consequence, It is however regrettable that al
their being flooded with Japanese 1/5 for 1933. The slight differ- but it appears to have been effec-
goods at cut-throat prices and the ence of permits an tive early in the
reports of un- year shice. in ready there are
to attempt
effectual competition
exclude spite of the great
between consequent expansion of
these
goods by tariffs or other comparison, although, due to the Japanese exports in 1933, their roads and, rallways.
Commercial Aviation continues measures.
This matter is, we such exchange difference repres magnitude of the figures involved. exports to China proper show a
that China's air services have not to develop. It goes without saying understand, now being taken in sents roughly £600,000, in Sterling hand by the Japanese Govern- yet reached the paying stage and
or approximately $8,400,000 who are bringing, strong pressed in Dollars. mént, the cost to the operators cannot
pressure to bear on the Trade
PRE-EMINENT POSITION be light The aircraft factories in China seems
Guilds with a view to the control establishment of
(of production and of exports. Current Accounts and Fixed likely to come in the near future State expenditure still continues. Deposits at the end of 1931 total- and great activity is to be obser-
at an extravagant rate and the led $773,481,393, whilst the figures 1933 under this heading ed in the purchase of military air- budget deficit for the year 1933/4 for craft and "in
the training of Chinese pilots.
the unenviable average of the past five years. But the actual mill- tary expenditure is more than this since certain unofficial sources of revenue are known to be appiled to this object. Although no public kans have
the been floated Chinese Banks have been called upon LO make large advances. secured on Customs Treasury Notes or terms regrettably unfavourable to the Government and the valu- able security of the Customs re- venue is being gradually frittered away. I cannot pass on without. mentioning the American Cotton Wheat credit of U.S.850 million which Mr. T. V. Soong negotiated during his stay in America last
May. This was a bold experiment which has not yet proved its worth. | Whether it will ever do so remains to be seen; it has" certainly not been the success it was originally hoped it would be and many of us have all along been sceptical as to the wisdom of Governments meddling in what is more properly the sphere of expert commercial
concerns.
CUSTOMS REVENUE Reverting to the financial post- tion of the Government, it must be remembered that 1933 was the first full year in which nu revenue was Ac- from Manchuria. received Lually this seriously affected only the Customs as little other re- venue
remitted from that W3S quarter to the Central Government. but it is satisfactory to note that in spite of this loss the Customs revenue for the year was nearly $20 million higher than in 1932,
shows
figures.
JAPANESE BOYCOTT
fall compared with 1932. On the other hand exports from China, to Japan show a fair increase:
Taking a broad view of the trade of China, the indications
seem to point to the fact that provided external conditions got no worse China trade can hardly
further go
downhill. Imports touched their lowest point In September and exports should not decline further unless, and here is the rub, silver prices rise much without a corresponding rise in commodity prices in other coun- tries. It is to be noted that "rice importations have increased con- siderably and that in value this
on the
economic
SHANGHAI That Shanghai plays an im- portant part in the trade of China goes without saying, but you may not be aware to what extent the
trade of China is now dependent
on that port. To put it shortly. Shanghai provides one-half of the Customs revenue; it is responsible for one-half of the import trade and one-half of the export trace of the country: 42 per cent of China's foreign shipping passes through Shanghai, it claims to be the fifth greatest port in the world. and 50 per cent. of all
In
per are concentrated there, addition to this there are the great Chinese Commercial and banking estimate of whose interests, no wealth has yet been attempted. The main reason for this immense concentration of wealth at that port is simply stated in the one word "security." about which sub- ject I may remind you Judge. Feetham wrote a valuable chapter in his report on Shanghai. I can therefore hardly stress too strong- ly the necessity which we feel for the avoidance of friction and of any impediments to the smooth running of trade at that port.
"the
colton
conference betweer.
To state that the past year has economic situation. The been one of difficulty and disap-
but
mildly tea restriction agreement has im- polfitment expressos proved the prospects of that in the chaotle conditions which have dustry and it is satisfactory that prevalied. and it appears to me: In the circumstances, highly com- India and Japan eventually reach-mendable that the efforts of those ed a mutually, satisfactory con- responsible have enabled such an clusion.
excellent statement to be present- ed to us. I consider that the Azures under review to-day can be regarded with justifiable pride. and that they display, in the cl cumstances. no mean achieve- ment on the part of the personnel of the Corporation.
JAPAN
The Japanese trade returns for the year 1933 are remarkable in that another record turnover is shown giving an increase of well over 900 million yen as compared
With a view to offering tangible
with 1932: The adverse balance is, evidence on the progress made,
million yen.
لوگو
ex-
in 1331
Is estimated at over 700 million amounted to $873,953,664, an: In- yen as compared with a deficit erease of $100,472,261. On the of 659 million yen for the previous contra side of the Balance Sheets, year. These deficits being met by Cash. Bullion and Securities which the issue of Government bonds totalled 3453,634.509 and not by increased taxation, the amounted to $814,130,677 at the consequence is that the National end of 1933. representing an ag- Debt is steadily growing and seems gregate increase in these items of likely before long to touch 8,000 8155,496.168.
Whilst recognising that the Cash It is not necessary for me to say position reflects In some measure in the very much about trade conditions difficulties encountered in other countries. You all know satisfactory employment of funds how things stand in this Colony under present conditions. never- and how little genuine business theless. I venture to say that the there is compared with business figures quoted display not only as we once knew it. The finances convincing evidence-1: such be of the Colony are however in a
to the Anancial satisfactory state and the out-stability of your undertaking. But standing Government debt is in- prove further the large measure significant in amount.
of success achieved by the con-
Conditions in the
necessary-as
•
Philippines. Unuity of policy pursued by owing to the sheltered position, succession of Chlef Managers of
shown little have
change. In exceptional capabilities who have Malaya and the Straits Settles been instrumental in placing this ments there has been a gradual Corporation in the pre-eminent position it occupies to-day in Far Eastern Finance and winning for
improvement since the middle of last year, mainly due to the rise in the price of rubber and tint a place in the forefront of the mighty Banking Institutions, of The shrinkage in trade which has
the world. continued without a break from
In this connection, if I may be ∙1926 has at läst been arrested and there is a much better feeling all round.
and what is more striking is that
Item now heads the list of all im- if the revenue from Madehurian
ports into China: this is a sur poris is deducted from the total prising fact. the reasons for Customs revenue for the record which are complicated, but al- year of 1931, it will be found that thoigh 21 million plculs of rice 1933 very nearly equals that year. were imported, this is according During the last few months the to a recent estimate, only about establishment of the independent one-fiftieth of the total production Government In Fuklen brought of rice in this. immense country. with a threat to the integrity Manufactured cotton goods held of the Customs Service, but the the leading position amongst im-foreign investments in China pro- danger was skilfully handled and ports för a great many years but remittances of the foreign loan they have now dropped to a very quotas were never interrupted. lowly place--sixth
list There is. however, another side to as low in value as nearly forty this picture. I refer to the steady years ago: the increased tariff of and serious tariff increases which last May, coming on the top of are bringing it dangerously near previous tariff revisions. 13 pro- the uneconomic level. In some "bably largely responsible for this cases the tariff is already unques- state of affairs. tionably too high, as is shown by
NATIONAL ECONOMIC COUNCIL the very serious amount of smuggling which is going on. Es- timates as to the loss of Customs revenue from this cause are of course largely conjecture, but even conservative figures run into tens of millions rather than millions of
You will, I feel sure, appreciate dollars. We are glad to know that
how much extra responsibility the the Inspector-General of Customs
disturbing factors and the difficult is taking this matter of smuggling
conditions under which the busi- in hand- with his customary more than preparatory work, but naturally bring us to the difficult ness of our bank has been con- energy, and we hope that he will if the hoped-for appropria-problems which face His Majesty's ducted during the past year have also bring his influence to bear tions from the American Cot-diplomatic representative in China thrown upon the management and with a view to obtaining tariff re-
ton Loan
results Are made avail- and to the much-discussed matter staff. (Applause). ductions.
for this Another unfavourable able
work • more of his place of residence.
how shown are therefore all the more creditable. The able way in . feature is the continuat mortgag- definite progress will be possible. Miles Lampson has passed on after
ing of the..Customs revenue as Road construction public health, more than six strenuous, years in which the abnormal situation now
China, for domestic loans, and and investigations into rural re- securlly
He can look back with prevailing has been met is, I think you will agree, deserving of the advances to which I have already construction. sericulture, and the well deserved satisfaction at see- referred. At the moment there cotton industry have been its ing how Anglo-Chinese relations greatest credit, The reputation of have improved as a result of his the Bank in the Far East stands may be no need for anxiety, but principal activities.
efforts. it is always advisable to go slow-
new Minister, Sirto-day higher than ever and the ly when one is carrying a basket
Alexander Cadogan, only passed loyalty of the staff to the Bank through here yesterday en route is one of the features of which with a good many eggs in it.
by the
to his post. We feel confident we are especially proud. The revenue collected
that he will carry those friendly | plause), Salt Administration remains fair-
An interesting feature, with great possibilities for the improve- ment of Chinese products, is the work of the National Economic. Council, which, largely under the direction and inspiration of Mr. T. V. Soong, is undertaking useful investigations into industry and trade. So far it has done Hitle
il
As regards the trade of Man- churia, during the past year the outstanding feature has been that essentially export country should now have an excess of im
in
ANGLO. CHINESE RELATIONS
These remarks on Shanghal
The
Sir
TRIBUTE TO STAFF
The
(Ap
Those of us of long standing residence in the Colony will have noted with regret. doubtless of sentimental origin. the passing of the old Bank premises which have housed for some 50 years the busi- ness of the Corporation. In Hong Kong: most of us having entered Its kindly portals from time time, at times doubtless in a state of extreme trepidation. Never- theless, it is recognised that the demands of business expansion and progress must be fulfilled, and by way of a salve to any senti- mental pining I feel we can con- idently anticipate that the new building due to emerge will in respect conform to the dignity and importance of our undertaking and in time remind
every
that the high degree of foresight demonstrated by a past generation who dedicated their working lives to the business of the Bank re- mains a propelling power in the administration of the affairs of: the Corporation to-day
TRIBUTE TO THE STAFF
I am sure that we are at one with the Chairman in his tribute to the Staf. We are indeed par- ticularly "fortunate in possessing a personnel second to none in cap-. ability and loyalty to the interests of the Bank, a feature ensuring that as Seniors duly retire, offices vacated will be assumed by mer of equally high calibre, an effec- tual guarantee that this Corpora- tion will continue to be the tower of strength to Eastern trade and enterprise is the future as it has been in the past.
With these few remarks, Mr. Chairman. I take pleasure in seconding the adoption of the Report and Accounts as present- ed, and that your recommenda- tions for appropriation of the amount avaliable for distribution be carried into effect. (Applause),
been
ELECTIONS
The report and accounts having unanimously adopted the meeting went on to make the fal- lowing elections.
Mr. P. S. Cassidy proposed that the appointment of Mr. K. S. Morrison to the Board of Direc-.. tors be confirmed, and also that Messrs. T. E. Pearce, T. H. R. Shaw and W. H. Bell be re-elected direc- tors. This was seconded by. Mr. A. B. Haworth and when put to the vote the motion was carried un.. animously.
Mr. J. W. C. Bonnar proposed the re-election of Mr. John Flem- Ing and Mr. H. R. Forsyth as auditors. Seconded by Mr. Wong Ping Sun this was so carried th animously.
The Chairman then made the welcome announcement that alvi- dend warrants would be ready on Monday (to-day).
Photo showing what progress is being made in the, work on the
old Bank site taken on Feb 21.