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PUBLIC RECORD OFFICE

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LTC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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the Japanese Treaties has been published and while some objections have been made to certain omissions in the former they are both in some respects improvements on the British Treaty. It is satisfactory to find that the payment of duties in silver is ensured under the terms of these Treaties. We understand that the German Treaty will also shortly be ready for signature but so far as I am aware the text has not yet been published.

The agitation now being carried on at home with regard to the fiscal policy of the Empire has naturally attracted much attention in this Colony, and while the time has not yet arrived to deal seriously with the question we have good ground for stating that the majority of the British business community here is agreed that a change should be made so as to place British trade on an equality with its rivals in the world's markets. I need only cite as an example one section of our business, viz., shipping. It is obvious that if we are to hold our position against foreign compe- titors equal facilities should not be granted them with our shipping in British ports unless we in turn receive in their ports the same favourable treatment accorded to their own shipping. (Applause.) This in the majority of cases is denied to us. The whole question of fiscal reform is as yet very much in the clouds, but neverthe- less very nearly concerns the Colony, and the Committee will therefore continue to follow closely the movement at home and should it ultimately be decided to seriously deal with the whole question no doubt full opportunity will be offered us to give our views on any matter which is calculated to affect the prosperity of Hong Kong, must of course always be borne in mind that Hong Kong, while a British Crown Colony, is chiefly a port of call for shipping. Its local productions are practically nil and its manufactures limited. An enormous volume of trade, a large percent- age of which is non-British, centres here for distribution to China, Philippines and other non-British territories, and consequently we must strain every nerve to attract this foreign trade to our port, and we cannot in our own local interests therefore regard this question of fiscal reform from the strictly Imperial point of view which may be possible or desirable in other outlying portions of our Empire.

It

I have reserved to the last what I think you will all agree is to Hong Kong the most important question as far as this Colony is concerned that has arisen during the past few years although it has not as yet been formally dealt with by this Chamber. I refer to the proposed Canton-Kowloon Railway. (Applause.) Throughout the whole of China we see new railways being projected and in some cases actually com pleted, mainly, I regret to say, by the enterprise of those other than British. The race is to the swift and we cannot grudge the well-earned success of our commercial rivals who under other flags press forward where our British investor apparently fears to tread. The British investor, I am informed on high authority, does not care to put his money into railways in China, and in view of the aid that other Governments. render their nationals, while our Foreign Office refuses to give us equal support, it is not perhaps surprising that British concessions for railways in China languish while we see foreign capital freely spent in developing foreign concessions. The Under Secretary of State for Foreign Affairs is reported at a recent gathering in London to have made a statement to the following effect. Speaking on behalf of the Foreign Office, he says:-"We are alive to the importance of railway development in civilis- ing a country and in promoting its commercial development

* but in China

we had not ourselves administrative responsibility and the work must be done by the foresight motives and self-interest of private capitalists." This, I think, fully explains and in a manner justifies, the attitude of the British investor. Under Secretary of State has been correctly reported, I am not in a position to say, Whether or not the but even though he may not have made use of the words above quoted, the policy of the Foreign Office as understood by us is here clearly defined. The time has now arrived however when an exception should be made to this policy. As I have already stated, the prosperity of this Colony depends upon its maintaining its position as a distributing centre for the trade of South China. This being the case it is imperative that the first railway line connecting Canton with the sea should be the Canton- Kowloon Railway. If funds for this line, estimated at a million and a half sterling, cannot be raised by other means, then our Foreign and Colonial Offices should join hands. This Colony should be allowed to guarantee for a term of years the interest on the capital required for the section of the line across the New Territory, or, if necessary, should construct and own the line, while the Home Government should for once in the interests of British trade in China, break through its traditions and

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guarantee the interest on the cost of the section outside the Colony. (Applause.) The distance is somewhere about 120 miles of which one-fifth would be in Hong Kong territory, and the cost of this section of the line would be about one-third of the whole. The importance of this question, both from a local and Imperial point of view, is so great that I make no apology for dealing at such length with the matter.

Since our last meeting the war cloud which had been hanging over our heads for so long has burst, and we grieve to see two brave nations involved in a contest which, whatever the result may be, must mean heavy loss in life and treasure to both. Already the result of this conflict has been severely felt by the business section of this community, and we hope, not entirely on selfish grounds, that the struggle may be brief, tending to shorten the period of distress and to minimise the disastrous results

of the war.

Before I take my seat I feel I should like to refer to matters of more direct personal interest. Our late Governor, Sir Henry Blake, after many years spent ĥere, has been now transferred to another sphere of activity. A somewhat unusually long interregnum has occurred between his departure and the arrival of his successor, but we were glad to find that His Majesty's Secretary of State has appointed for Administrator so experienced and able an official as the Colonial Secretary. (Applause.) Still another official who, while not connected with the Government of Hong Kong, has been closely linked with the trade of the Colony has recently left us. I refer to Mr. James Scott, His Britannic Majesty's Consul-General at Canton. It was with sincere regret we bade Mr. Scott farewell, particularly in view of his health having so seriously suffered during the discharge of his onerous duties. I believe I am right in saying that there is good reason to fear Mr. Scott may not return to China, and I take this opportunity, therefore, of placing on record our high appreciation of the energy and ability always displayed by him in the execution of his work. I feel confident that all those members of the Chamber who have had dealings with Mr. Scott will readily endorse what I say. (Applause.) While it is the object of the Chamber of Commerce to deal with all questions relating to our trade as they arise and so far as may be to provide for future contingencies, it is well occasionally to give a glance backward and to recall those who have worked in the past and by whose labours we now benefit. During the past year a very notable figure has disappeared from the scene, and while it is perhaps somewhat invidious to make special reference to one when so many did good work, still the unique position he occupied must be my excuse for mentioning the name of Admiral of the Fleet Sir Henry Keppel. Admiral Keppel, as we all know, specially distin- guished himself in the earlier days of the Colony by his brilliant services under fire, and also against the piratical craft which then swarmed in these waters, while later he was very closely connected with the history of Hong Kong. He has now passed to his rest full of years and honours, leaving behind him a reputation which all must regard as a high example of good service fearlessly rendered in the interests of the Empire. We have recently had brought before us in a forcible manner the advantage which lies with those who hold the command of the sea, and it is good on occasion to recall the debt we owe to His Majesty's senior service and to remember that their presence here means security to our trade in these far distant waters and ensures the safety of all those who dwell under the shadow of our wide-flung flag. (Applause.) With these remarks I beg to propose the adoption of the report and accounts.

Mr. E. S. WHEALLER:-Mr. Chairman, I have very great pleasure indeed in seconding the proposal. I think that from the report and the Chairman's speech it must be evident to all the members of this Chamber that the commercial affairs of the Colony have Leen very well cared for, and our thanks are due to the Com- mittee for the way in which they have looked after those things both great and small. There are one or two things which the Chairman has referred to which I would like to mention. With regard to the question of explosives on board steamers I can only say it seems difficult to understand why it is that we cannot get on with similar regulations here to those that exist elsewhere. The Government has not told us, as far as I understand, why special regulations are required here. With regard to the Medical Officer of the Port we have, so far as things go, and can be with a gentleman in private practice, perhaps as efficient a service as we can expect, but for one of the biggest shipping centres in the world that service is not nearly good enough. My experience last year when I was travelling-and I was in most of the ports in this part of the world two or three times-was that on the two occasions on which I arrived in Hong Kong it took an immensely longer time than in any