6.
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trade has fallen off to an alarming extent and that our
manufacturers are finding it increasingly difficult to
secure outlets for their produce in the face of the high
duties with which almost every country of the world is
seeking to protect its domestic industries. Our manu-
Lactures then h. comparatively speaking small in volume
cre far greater than many people realize and provide a
livelihood for nany thousands of our citizens. Even if
a system of protection were possibl in this Colony local
consumption alone could not maintain our factories. Our
entrepot trade which I think Honourable Members will
agroc is our real raison d'etre is suffering severely
from the general shrinkage of world trade. I have seen
it stated that there has been a reduction of fifty per
cent in the value of world trade since 1929. Here again
protective tariffs have a great deal to answer for. Bach
country is trying to live on itself and the more it suc-
ceeds the greater must be the reduction in international
trade on which a great port like flow Kong so largely
depends. One hopes that this is but a passing phase of
world history but while it continues Hong Kong must
inevitably suffer. We have in addition our own local
difficulties in the unstable conditions in China, which
is our closest neighbour and largest customer.
I am in-
hormed that business with China was never more difficult
than at present for to political and financial troubles
has been added the hindrance of a high protective
tariff.
So difficult has our position become that in