C. O.
89
Mr.
Mr.
Mr.
Sir C. Parkinson.
Sir G. Tomlinson.
Sir C. Bottomley.
Sir J. Shuckburgh.
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
DRAFT.
FURTHER ACTION.
"autarchic" world; and were of the opinion
that there was a pressing necessity for
".... a closer friendly economic contact
with China and/or closer economic contact
with the rest of the British Empire". These
two lines of approach need not necessarily
be incompatible; but in any case an arrange-
ment with China is of overwhelming importance
for Hong Kong.
The Commission ascribed the present
depression in Hong Kong to two main causes:-
(1) the general economic depression.
and the widespread growth of economic
nationalism resulting in the use of tariff
barriers and a diminution both in imports
into and exports from China.
(2) the systematic encouragement of
the production of manufactured goods as well
as raw materials in China, in competition
with an increasing proportion of the staple
foreign commodities hitherto marketed in
China.
of