HONG KONG DAILY PRESS, FRIDAY, APRIL 19, 1935.
THE PRESENT TRADE DEPRESSION
IN HONG KONG
Report Issued by Commission
..
COLONY'S GENERAL POSITION
ANALYSED
The Report of the Commission appointed by His Excellency the Governor, Sir William Peel, K.G.MLG., K.B.E, to enquire. "In- to the cause and effects of the present trade depression in Hong Kong and make recommendations for the amelioration of the existing position and for the improvement of the trade of the Colony," was issued yesterday and contains many items of in- terest.
Below we publish a chapter from the Report, dealing with the general position of Hong Kong. The other chapters will api pear day by day.
The following were the members of the Commission:
Mr. M. J. Breen (chairman); Hon. Mr. C. G. S. Mackle, Hon. Mr. T. N. Chan, Mr. A. Brearley. Mr. F. A. Joseph, Mr. Stanley H. Dodwell, Mr. V. M. "Grayburn, Mr.-G. C. Pelham, Mr. Li Kuon. Chun, Mr. W. N. Thomas Tam, and Mr. B. C. K. Hawkins_(sec= retary).
Dealing with the general position of Hong Kong, the Report states:-
sective tariffs, are such as to re- strict trade, this Colony's entre-
56
A DEPRESSING YEAR.
Reported At "Indo-China". Annual Meeting
*There were one or two bright spots in * otherwise depressing year, but these unfortunately were not of sufficient moment to turn the scale," said, the Hon. Mr. J. J. Paterson who presided at the Annual Ordinary Meeting of the Indo China Steam Navigation Co, Ltd, yesterday in the Board Room of Messrs. Jardine Matheson & Co.... Llá
.!.
The chairman added that the bottom of depression in China Was not reached last last year when he addressed them at the last meeting
China's trade will eventually be transformed and though her in- ports may gradually-increase they will tend to consist of capital goods such
machinery. and technical, equipment rather than of consumable goods, themselves..
It is, however, ressonable, to anticipate that although the ha
ure of the trade will change, Harig tKong win probably for a long time to come continue” to ful-. fil its natural role. The arbitrary Imposition of tarlifts and taxes may prove irksome to the inter- mediary merchant in the Colony as these cause sudden dislocations of business. The direct importer of foreign goods in Chinese. ter-" ritory is, however, under the same disability. There is no reason to fear that local merchants will lack
Supporting the Chairman were enterprise and fall to adapt them- selves to altered circumstances, or the following members of the board of Directors: Sir Robert that the port will not be provided Tung. Messrs M. T. Johnson, with the shipping facilities and
8. T. Williamson, Sir connections with the interior necessary to maintain its position Shentor (attorney) Mr. P. Tod
(secretary); as the ocean gateway of Southern China,
SHIPPING INTERESTS
So great was the predominance that for many years its industrial in Hong Kong of shipping interests
activity has been in the main con- nected with shipping requirements and has concentrated round ship- building and ship repairing.
As these activities had to be on a scale commensurate with "the im-
다
է
With smaller cargoes and decimated tariffs, the earnings of the Coastaj and Yangtze Lin és suffered "considerably and the chairman assured the shareholders that the Company maintain- ell yes mhare.
William
were:
Shareholders present Messrs N. LH. Rafiton, M. L. Railton, W. E. Kirby, P. Tod Chan Wing, F. C. Hall, A. C. Wilcox, A.
Macdonald, J Baptista, M. H. Lo M. de Bilva H. N. Dulley, T. R.
John Fleming, A. Murdoch.
Chairman's Speech.
meeting Addressing the chairmaa said:---
The Report and Statement of Accounts have been in your hands
the
ships, smuggling will continue to be a profitable venture for those engaged in it. During the year we were mucted in some beavy.
fines and though I appreciate the difficulties of the Customs it does seem hard that the ship should pay.
Once again your Directors are happy to report the absence of any major casualty in the Fleet and though there were a few minor accidents, inseparable from an or- ganisation of our extent, yet I am sure you will join' with me in thanking the Floating Staff for this excellent record. They, and the Staff ashore, have co-operated wholeheartedly with the General
po trade must shrink propar-portance of the port they quickly for some days and I trust I may Managers and this spirit is grate-
iorately.
The island of Hong Kong con- conditions in China one quarter sists of a range of hills rising out of whose brade with overseas it of the sea. On the north side is Handles. If condtions in China, the harbour backed by the City of whether because of general de- Victoria. On the mainland, fa pression or as a result of pro- ing the City of Victoria'across the harbour. is the complementary City of Kowloon with a similar range of hills in the immediate background. Beyond, and up to the frontier, lies three hundred square miles of hilly country with a few valleys of fertile land cul- fivated under Chinese methods. During the ninety odd years of! British occupation a crowded ur- Dan community of a million peo- ple, the vast majority of wham are Chinese, has sprung up, with the harbour as its centre. This community Is sustained by the
UNSATISFACTORY STATISTICS
In this connection it should be noted that Hong Kong Trade Statistics are far from satisfactory. To begin with they are intermit- tent and, moreover, there was a hiatus between the years 1025 and 1330 during
which period figures were recorded. Even now it is not possible to draw positive conclusions from the figures avall- able for the reason that they are
no
Trade and Industry of the Colony. agures of entrepot trade and there agriculture being comparatively negligible.
is no. Indication what percentage relates to local consumption or to manufactures in the Colony. The same caution should be given in
Hong Kong consequently is not an economic entity even in the most restricted sense of the word and it could not, even if it would. adopt the principles of the pre- sent world wave of economic na- tionalism. As a community, and
respect of figures relating to po- pulation. The diffeulties of cen- sus taking in the East are notori- ous and Hong Kong is no excep- tion in this respect, but for all "that, the
census returzs are 2
itne of valuable information and it is a pity that so long a period as 10 years intervenes each successive census.
between
for local
con-
as à trade centre it is. a portion of China from which is is separated. by political barriers. It shares In the strength or weakness of its neighbour's conditions and in- stitutions. It has a relatively small Hong Kong domiciled popu-
It would, of course, be incorrect lation and its inhabitants are in
to say that all the goods handled the main transient workers and in Hong Kong, except the small business man from the neighbour-city retained
sumption. ing province of Kwangtung, who
are proceeding to or from China. The excellent ship- flock into the Colony when employ- ment, is available but who do not
ping and warehousing facilities sever their literests in their family
offered by the Colony, together holdings on the land nor. in many
with its geographical position as a terminal port, place it in a very cases. bring "their families from
favourable position their villages to reside permanent-
to perform entrepot and transhipment ser- ly in Hong Kong. Widespread un-
vices on behalf of other Asiatic employment does not, therefore,
countries besides China, bring in its train the serious so- cial problems it does in other coun-
an important factor in its pros- tries. In general it merely results perity and one which should he encouraged. but the fact remains that the real basis of the Colony's commercial existence is," and must continue to be, the handling of the trade of China.
in an exodus of the workers and their temporary reabsorption in their village communities In the -interior of China.
This is
£45,808.15.3d.
fully acknowledged by the Dir ectors generally and myself in
I particular, for realize fully that the difficuties of" running steamers become greater as time goes on. For these reasons the Dir 'ectors and General Managers re- gret. exceedingly that amongst other economies they were obliged to effect last year, the staff were called upon to таке turther sacrifices.
with your permission, take them as read.
In common with most other Shipping Companies throughous the world we found trade in a parlous state during 1934 and regret to say that the Balance of Steamers Working Accounts showed a loss of compared with a small profit of £29,836.15.0₫ in 1933. There were one or two bright spots in an
Economies have continued to otherwise depressing year, but sumcient moment these unfortunately were not of be the special concern of all con- to turn the nected, with the Company and I wish to assure you that the re- When I last addressed you duction of expenses will continue I sensed a better feeling at to be studied carefully and in- Japan but it appears to me now, Home, in India. Malaya
and
troduced wherever possible.
THE FLEET
scale.
as it did then, that the bottom
of the depression in China has
Dot yet been, reached. Business
.
Ы
attained proportions for along time unequalled in the Far East. They must obviously continue to constitute the nucleus. of Hong Kong's heavy industries. as they are essential the Colony is to discharge its primary function as an international trade centre. It is important to observe, however, that there is considerable indus trial activity apart from shipping, the factories which have been ca-
growth and are not of the heavy tablished are largely of recent
industry type. The Commission- ers surveyed these recent indus- tries at some length and came to the conclusion that they had a definite future and that their development should be encouraged. It is true
As stated in the Report the that the problem of
"LUENHO" was sold at a proat marketing the products may be
on Book Value. With approaching accentuated by tariff and quota between India, Malaya and Japan age he was becoming too costly restrictions, but "Hong Kong as a have even increased to some ext- to operate and though it meant free port has advantages, in rès-ent.and the Company's Line cor- depleting one of our passenger pect of manufacturing certain
the Yangtze, the necting these countries benefitted services on standard articles at any rate, proportionately.
Our main inter- difficulty was overcome by Atting which may well set off the db-ests, however, lie along the coasts
out the "PINGWO-a cargo ves- stacles to be overcome, and it may and rivers of China where trace el-with up-to-date accommoda- also be possible to explore the continued to shrink and, as might tion, thus one ship is doing the possibilities of bilateral agree- be expected under the circumstan- work of two. Since the close of ments with natural markets.
ces the scramble for business by the year the "ZUSANG" was also Further, the Colony possesses competitors reached unparalleled diposed of for similar reasons. Ad- an asset in its attraction as a re- severity. sidential centre and as an holiday and decimated tariffs, the earn-oil lighters and a small ofl stor- With smaller cargoes ditions to the Fleet were two bulk- resort. A large number of wealthy ings of our Coastal and Yangtze ages pontoon for Chungking to Chinese who have retired from Limes suffered considerably but which reference was made by me overseas or trom the interior re- you may rest assured that this last year. In order to supply the side in Hong Kong where they Company maintained its share. acquire property
urgent need for new tonnage on and domicile themselves and their families. This
IF SILVER ROSE!
one of our most important routes, Last year at this meeting I ex- your Directors decided to lay down class andoubtedly contributes pressed apprehension as to what | a modern passenger coaster and valuably to Hong Kong's economic would happen Saver rose and favourable arrangements were well being. The number of Chin- did not take commodities along, made with the Hong Kong and ese workers in Hong Kong who this happened and business has Stanghal Banking Corporation to maintain their families here is in- Dever been worse. To put all the finance her construction. Tenders creasing and the tendency should blume on high Sliver of course were invited from several Ship- be
encouraged The Imperial would not be fair, China's inter- building Yards with special at- forces maintained here contribute mal troubles have told their tale tention directed to light draft, This very important function conspicuously to the Colony's pro- but high silver is likely to be the speed and economical operation. fecting the exchange of South by visitors whether foreign or which Hong Kong renders in "efsperity. The money spent locally isst straw.
After careful study the contract Coming nearer home, though was awarded to Mesars. Lithgows China's products for those of over Chinese must be considerable and Borg Kong is bound up insepar- of Glasgow, and I am corddent seas countries
does not proceed with a definite measure of official ably with the trade of China and the new steamer will prove a valu- from the mere fact that Hong encouragement local
amenities suffered from the continued de-able acquisition to the Company Kong possesses an excellent har-
might be improved, visitors might pression, we have fortunately es-when she arrives out here this increase in number and might be caped the financial stringency of Autumn. Special thought has Shanghai. We are Indebted" to ↑ been given to the comforts of pas- AGRICULTURE LIMITED
the Government for their con- sengers as has also the need for tinned searches on steamers for the rapid, delivery and safe hand- While it is recognised that land
unmanifested cargo and pirates ling of the miscellaneous cargoes available for agriculture is limited,
masquerading * as passengers. she will be called upon to carry. it is felt that there must be a dis- These may prove irksome mea
DE NO DIVIDEND transit to or from China must tincu possibility of the adoption of sures at times but I am connd Turning now to the Statement in the main be conveyed in deep Improved methods of cultivation ent they do act as a deterrent of Accounts, you will note there is draught ships and they must at and schemes of land reclamation As regards Piracy, we may count a loss on the Working of Steamers some stage be discharged into with Government support. This ourselves fortunate in having only of 245,808.15.3d. No charge has smaller coasting ships. or into would tend to render the com- AN URBAN COMMUNITY
a single case last year. It occur- Been made against Revenue Ac- warehouses ashore. As long as munity less dependent on outside red on one of our chattered stea- count for depreciation during the As the Colony is an urban com- Hong Kong offers peculiar facil- sources of food supply. This is mers from Shanghai to Hong year, as will be explained present- munity possessing but a small itles for this operation so long particularly important at a time Kong, but the circumstances were ly, and after allowing for all other agricultural hinterland, its pro-w it continue to fournish by when the earnings of the Colony not as serious as they might have Liabilities etc there remains a duction of basic raw materials is performing an essential service to as a whole have shrunk so much been. Still, with others fresh in debit of £81,323.19.34. To provide negligible and it produces only a the benefit of both China, and the that in order to redress the your memory, it reminds us that, for this loss it la proposed to fraction of the foodstuffs it con- Calory
economie situation the Colony this scourge on the high seas has transfer £62.000.000 from Cen sumes. Its real commercial hin- The volume of this trade be should endeavour to spend as little not been eradicated. Prevention eral Reserve Account and to carry terland is Bouth Ching froin' which | tween China and overseas, as will as possible outside its borders, is required not cure. The Navy | forward £878,0.34 to the year it is separated by a political and, subsequently be shown, has shrunk The "proximity of a great urban works under great dinculties and 1935. Under these circumstances I what is more important; a tar considerably in recent years. It market for produce does not seem is to be highly complimented on am sorry to say a Dividend is out barrier. Internal trade, usually so
is subject to two main influences to have stimulated the farming the service given ungrudgingly to of the question. For the past important as the basis of the neither of which can be affected community to the extent that all ships without this help pas-three years, the Directors liave economic equilibrium of a nation, by any. policy taken locally, If might have been expected under a senger-business would be, impos waived their Fees amounting to is practically non-existent.
for reasons of world impoverish- progresalve government. A Com-aible, ipad, DASS
£1,500.0,00 per annum and, as I Roughly estimated, its external ment or high tarifts elsewhere,mittee has now been appointed to THE SMUGGLING MENACE have stated before, these trade is four/fifths re-exports of China cannot market her pro- explore the possibilities or deve- Turning to manggling, the pre- are not held in suspense. goods destined for South China ducts, it follows that she cannot lopment in this direction. eventive measures we inauguarated Dealing with the Balance Sheet, from overseas Gr from North afford to import, and, as, ber A further potential source of at various ports together with the 1 refer you to the Circular ad- Chins, or vice versa. Increasing foreign trade must be reduced, wealth would appear to be the ready assistance of our Officers dressed to Shareholders on the ly important as local manufac- Hong Kong must suffer proper- Colony's fishing Industry. With affont have to some extent, arrest- | 9th June fast in which was set out tures, not specifically related to tionately. Of equal Importance is the introduction of more moderned this Buelt frame as far as we the decision of the Directors, shipping, have recently become, the industrial development of methods adequately supported by are concerned but I fear that until the approval of the Auditors, to they do not account for more than economic evolution and partly in capital the possibilities of dever the Customs Authorities are able revalue the Fleet on the basis of ́s small proportion of the Colony's consequence of China's recentlylopment are so far as is known to mete out adequate punishment present day shipping values business. In the main, therefore, adopted policy of economic na Hong Kong is but a "mirror of tionalism. Inevitably, therefore)
A depression may not, therefore, be obvious to the casual visitor to the Colony. Ita visible signs are hot apparent. One does not see processions" of unemployed or an undue number of empty premises and shops. On the contrary, the outward appearance of the main streels seems as animated as ever,
bour but rather from the fact that
improvements and reconstruction
there is no other deep sea harbour continue to transform the main having at the same time conven- thoroughfares, which indeed as
ient access to the inferior as well
the present time appear
as safe anchorage and efficient to be hives of activity. In comparison equipment and facilities. Goods with neighbouring Eastern cities at any rate, the standard of well being of the populace is well
perhaps even more so as lighting between Shanghai and Indo-China Induced to prolong their stay,
maintained.
(Continued on Pare 10)
to the actual culprite, instead, of taking the easier course of fining.
(Continued on Pare 12)
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