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there has been some slight improvement. Mr. Liang then ex- presses the view that British merchants and manufacturers should adapt themselves to existing conditions. They cannot stick to old methods, and must change with the times in order
to be able to hold their own against the competitions of Japan, Germany and America.
Hong Kong as a Commercial Distributing
Centre.
43.
Mr. Liang also expresses the view that Hong long cannot afford to lose its position as a distributing centre. Already
some of its former trade has been diverted elsewhere. Une
of the most serious items of loss in this direction is the for-
mer rice trade with Saigon and Siam for re-export to Japan. This rice is now going direct to Japan. If trade improves the population of Hong Kong will increase. During the last two
years, most business establishments in the Colony have had
to retrench by dispensing with many members of their former
staff; but if business improved, they would have to increase
their staff once more. There are thousands of Chinese shops
here that are in this position.
Hong Kong should therefore
do everything it can to help to stimulate trade, and the best
way to do so would be to assist Li Tsi-hsin in restoring peace
and prosperity to Kwongtung.
The Trade Loan, and Other Forms of Government Help to Stimulate Trade.
44. Mr. Liang also asks how much of the Trade Loan has been
repaid. His Excellency replied that about $15,000,000 had been
lent out, and that one-third of it has been repaid. r. Liang
suggested that the Government should find a way to help the merchants in order to assist the improvement of business.
course money to be lent to the merchants must be lent for the
Of