HONGKONG'S MAIN PROBLEM
ENT imes
THE UNRESTRICTED INFLUX OF
CHINESE
t
A CUMULATIVE FINANCIAL DEFICIT
From Our Hongkong Correspondent
Since Hongkong was reoccupied the, required to enforce a check upon the dominant factor in all its major problems numbers, identity, and status of new (political, economic, financial, educa-arrivals. It is obvious, however, that there tional, and public health) has been that of tion that can be accommodated in the must be a limit to the size of the popula- unrestricted Chinese immigration. The colony. Now that this is approaching the estimated population of the colony before figure of 2,000,000, that limit would the outbreak of Chinese-Japanese hostili- appear to have been reached. ties in 1937 was under 1,000,000 and pro- ! Hongkong has never been an important bably not over 800,000. At the time of the manufacturing centre. Its pre-war sugar refineries and cement works have so far Japanese attack upon American and British possessions in the Pacific the popu- smaller industries, for instance, those been unable to resume operations. Some lation had increased to at least 1,500,000, making canvas and rubber shoes and a figure which included about 750,000 those engaged in knitting and weaving, refugee immigrants from South China who had sought safety on British soil. The are slowly being revived. But they can- not absorb a fraction of the new immi- majority of these immigrants were desti- tute.
to
The Japanese, during their three grants. The demand for unskilled labour years and eight months' occupation, em--has virtually ceased, so that every in- -which is the status of most immigrants ployed barbarous methods to reduce the coming Chinese who has not means or a population. Thousands of lives were lost livelihood of his own is likely to become as a result of the cruel system of repatria- a liability to the colony. He adds little tion the Japanese enforced.
or nothing to its revenues but necessitates REHABILITATION PROBLEMS increased administrative expenditure When British forces again took posses-faces a deficit of over $115,000,000 for under almost every head. The colony sion of the colony in August, 1945, the the financial year ending March 31, 1947. population of Hongkong was estimated at It does not possess the resources less than 500,000. Immigration from finance social welfare schemes and educa- South China started within a few weeks tion for a non-tax paying population. of the establishment of the British Mili- Moreover, the deterioration which took tary Government and soon attained the place under the Japanese occupation has astonishing figure of 100,000 a month. left in its train problems of rehabilitation Unstable political conditions throughout and reconstruction which cannot conceiv- South China constituted the main cause ably be met from normal revenues. of this huge influx. Equitable rice ration-
POSSIBLE REMEDIES ing, a stable currency, and the early re- storation of law and order attracted the No one imagines that the colony'scumu- poorer Chinese in their tens of thousands.lative deficits will be met indefinitely by Later many thousands of wealthy Chinese the British taxpayer or by Government poured into the colony, not only from loans. Additional methods for raising South China but from Shanghai and the revenue are imperative. Superficially the northern ports. These immigrants were simplest remedy would be the imposition anxious to save what remained of their
wealth and enjoy the benefits of a régime of an income-tax. There is no reason to which battled against currency inflation, suppose that British residents would offer against profiteering in essential commodi- any opposition to this impost if it could be ties, and haphazard taxation or blackmail, equitably enforced-i.e., if the thousands The uncontrolled influx of Chinese, of enormously wealthy Chinese could be poor and rich, aggravated the problems made to pay their share.
But no one of rehabilitation. Some 70 per cent. of familiar with Chinese systems of book- foreign style and 30 per cent. of Chinese keeping and accounting is under any illu- style residential properties had been sion as to what would happen if a local rendered uninhabitable by bombing or income-tax were imposed. It would be looting, chiefly the latter. In the early paid in full only by foreign firms, salaried months of the reoccupation the deterio-employees, and professional men whose rated public services were quite incapable accounts were kept in English. It would. of meeting demands for water, electricity, in effect, become a discriminatory form of and gas, tram and bus services. The taxation against the non-Chinese. A depleted police and public health staffs special committee is studying the problem, found it difficult to care for the minimum but here, as in Malaya, Chinese opposi requirements of the swollen community. tion to income-taxes would probably
prove too vociferous to be overcome. DIFFICULTIES OF CONTROL It is felt that every possible alternative While no restrictions were enforced to inequitable taxation should be studied against Chinese immigration, drastic before reaching a final decision. One sug- measures were adopted to check the entry gestion, put forward with all diffidence, is or return of British subjects from the United that Hongkong should change its status. Kingdom and from Australia. The hous-from a free port to a tariff port. The free ing shortage was intensified by the willing-port system encourages smuggling into ness of wealthy Chinese to pay extortion-China, which is one of the long-standing ate sums as "key-money" for the rental grievances of the Chinese Government. For purchase of house properties. Most reasonable tariff on all imports other returning Britons had to content them-than absolute necessities could be accom- selves with a dormitory existence in the panied by a system of drawbacks, which larger local hotels. Only the wealthier would enable importers to claim a refund firms and individuals were able to meet of duties when cargoes were re-exported the high cost of repairing and refurnishing to China-or elsewhere-and incidentally looted and damaged premises.
impose a definite check upon smuggling There is a widespread local superstition activities, if the system were operated in that unrestricted immigration by Chinese cooperation with the Chinese Maritime is a right that they enjoy by treaty. There Customs. Substantial additional revenues is no basis for any such belief. Un-might be expected from this change. restricted immigration is tolerated to-day, Certainly, extraordinary methods of as it has been in the past, because of the raising revenue may not unreasonably be physical difficulties of imposing any kind advocated to cope with a situation which of control over the Colony's long land imposes upon Hongkong expenditures for and sea frontiers. Chinese come in afoot, social services, education, and public by train, by steamer, and in junks and health, which arise from a pressure of other small craft. A fantastically large population over which the Government staff of immigration officials would be cannot exercise control.
Alle Manke.
Miss Ruston
Mr. W.B. Davis (452) MIR R. C. Cade (13)
Meis Boshell (13)
MIP J.B. Williams
W.A. Morris
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