J

No. 462.

Sir,

RECEIVED

1332

COL. OFFICE

3/17 By 171

GOVERNMENT HOUSE,

HONG KONG, 7th October, 1932.

I have the honour to acknowledge the receipt b. of your despatch No.247 of the 26th July, 1932,

enclosing a copy of a letter from the Cement Marketing

(13) Company Limited on the subject of the use of Japanese

or British Cement in connection with the Shing Mun Valley

Waterworks Scheme.

2.

Vement of good quality is manufactured locally by the Green Island Cement Company Limited, a British Company employing local labour but using imported limestone. This Company is however at the present time quite unable to compete with Japanese importers who are in a position to supply cement of satisfactory quality at $1.35 a bag as compared with $3.25 a bag which is the price charged by the Company. It is thought unlikely that manufacturers

in Great Britain will be able to compete even at the higher price, the more so as the Company may be expected to put forward a lower quotation when tenders for the material

to be used in the dam are called for. The ultimate

figure may prove to be little over the cost of production

which is put at $22 $26 a ton.

3.

The present low price of Japanese cement is due

to the effect of the boycott, to the depreciation of the

Yen, to the low freight charged by Japanese Shipping

Companies and possibly also to a direct subsidy.

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.,

The

&C.,

&C.,

&C.

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