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I am inolined to think that the foundation of the
prosperity of this Colony rests upon the harbour and the harbour
restsupon
alone, together with the industries arising by reason thereof.
Surely the industrialisation which has taken place in
the past few years in lines such as knitting factories, the manu-
facture of sweetmeats, rubber shoes, torches and a number of other
things is due:
(a) To the disturbed conditions in South China.
(b) To settled conditions in Hongkong, and,
until recently
(o) The low Chinese tariffs.
The position has altered. South China has experienced
more settled conditions in the past two or three years than she
has had for the past 20 years; the settled conditions in Hongkong
still remain, but China has now a high protective tariff with a
view to fostering her new industrial reorganisation scheme,
One must not lose sight of the fact that the industries
of Hongkong are largely what might be called cottage industries,
that is to say, carried on in the ground floors of dwelling
houses.
The industrialisation of Hongkong outside the port
industries has, in my opinion, been largely artificially based on
unsettled conditions in China.
I can see no reason why the Chinese Government should
not be asked, and very strongly pressed, to give preferential
tariffs to Hongkong, in respect of Hongkong manufactories, having)
regard to its free port status as compared with other highly por
teated countries.
W.E.L. SHENTON.