542
M
104
The provisional programme embraces many important questions, some of which deeply interest this Colony.
My Committee are fortunate in securing as the representative of this Chamber one who has such a first-hand knowledge of conditions of trade in southern China. The liberty is taken herein of indicating the trend of commercial thought as regards certain questions which will receive the attention of the coming conference. The expression "commercial" in the preceding paragraph is used advisedly, in that it is duly recognized that local trading interests must be subservient to Imperial policy.
The circular, dated 30th December, 1915, announcing the conference, suggests, among other matters, for consideration:-
(1) Fiscal Questions.
(a) The adoption of the system of preferential tariffs within the Empire. This is a knotty problem as regards the Colony of Hong Kong.
As you know, we are merely a depôt-a godown. Even a small tariff may give an undesirable fillip to direct trading with other ports-may, indeed, encourage the establishment of a new port in southern China to the detriment of Hong Kong. A tariff on foreign goods entering Hong Kong would mean a double tax on the same goods entering China via this port.
Should we gain Imperially what we lost locally?
On the other hand, if an exception were made in our favour in a general scheme of Imperial preference, the import of foreign goods into other parts of the Empire via Hong Kong, and duty free, would have to be guarded against.
(b) The question of preferential trade relations between the British Empire and Allied nations.
If this resulted in Hong Kong becoming a depot for exports from China in order to qualify for preferential treatment it would largely increase our trade.
Would the preference extend to shippers of all nationalities?
(c) The measures which should be taken within the Empire against enemy countries in respect of manufactured goods and shipping.
This chiefly concerns Hong Kong as regards shipping, and, being the last of a chain of British ports, it depends upon what is decided as a general British policy. The more ships using the port the better for our local prosperity and taxes.
(d) Measures against the dumping of enemy goods within the British Empire. This is a question of general policy throughout the Empire.
(2) Legislative Questions.
(a) Amendment of the laws relating to nationalization.
It is hoped in future that the nationalization laws will be drawn up and administered on much stricter lines.
Compulsory registration of aliens throughout the Empire.
My Committee are in favour of the compulsory registration of aliens throughout
the Empire.
(c) The question of licences to trade and other regulations affecting foreign firms and companies.
Foreign firms and companies should only be allowed to trade under licence. (d) The prohibition of contracts with aliens which may have the effect of restraining Imperial trade.
Generally in favour of this.
(e) Reform of patents and designs and trade-marks law, with the object of establishing a uniform basis throughout the Empire.
Generally in favour of this.
The application of the principle of Imperial preference in taxation, and the adjustment of the present system by which double income tax is charged within the Empire.
As you know, no income tax is payable in Hong Kong. It is recognized that the difficulties in the way of imposing such a tax on a community mostly Chinese are probably insuperable. To tax the small European population only would be iniquitous. It is held that the Colony already bears a fair share of the Imperial burden in the form of the military contributions.
105
(3) Voluntary action by Chamber of Commerce and Board of Trade. (a) Limitation of members of Chambers of Commerce, etc., to British-born subjects.
There again we are peculiarly situated with a cosmopolitan trading popula- tion, contributing to the prosperity of the port. However, the formation of a purely British Chamber has already been tentatively considered, and if a general move we should probably take the necessary steps to
were made in that direction follow suit.
(b) Appointment of additional Trade Commissioners by the respective Govern- ments of the Empire.
It is recognized that the British Consular Service leaves much to be desired in its relation to the furthering of British trade interests. There are some bright exceptions, but, generally speaking, the usual type of consular official is not sympathetic to the trader. It is not his fault. His training does not equip him with the trading instinct, if one may use the expression, and he cannot recognize openings for trade expansion.
On the other hand, the type of man who would be really useful is he who can demand a higher scale of remuneration in actual commerce than a Government would perhaps be able to offer.
The appointment of such men to suitable trading centres might make necessary an all round raising of consular emoluments to level things.
If properly trained men were appointed the result would be undoubtedly beneficial, but the selection should be made by business men themselves. The choice by legal legislators would probably only mean an additional Imperial burden.
The Commercial Attaché of the present type would be of comparatively little value.
(c) Encouragement of inter-Imperial trade exhibitions.
We are not in favour of local exhibitions of British manufactures which can be used to supply Eastern competitors with models for copying purposes.
(d) The promotion of closer trade and social relations within the Empire and in relation to Allied countries.
A very worthy ideal.
I enclose, for your information, two letters recently addressed by this Chamber to the Hong Kong Government. They give some indication of a feeling among the mercantile community of this port which is rapidly hardening, and would appear to be shared by the British merchants of other Far Eastern possessions.
My Committee leave the expression of their views to you in the fullest con- fidence that you will interpret them in the interests of the Empire as a whole, and this Colony in particular.
Yours faithfully,
E A. M. WILLIAMS,
Secretary.
Enclosure 2 in No. 30.
RESOLUTION MOVED BY THE HONOURABLE MR. P. H. HOLYOAK.
It is the opinion of this Council that it is in the best interest of the Colony
of Hong Kong that persons of German nationality should be excluded therefrom for a period of at least ten years following the declaration of peace; and that, subsequently, they be only admitted into the Colony under strict licence.
Enclosure 6 in No. 30.
HONOURABLE COLONIAL SECRETARY,
1. THE proposals of the Chamber of Commerce are as follows:- British" traders to insure only with "British" companies.
CC
'British" companies to reinsure only with "British" companies.
(c) "British" insurance companies to employ only "British"
British territory.
agents in
(d) A tax to be imposed on all premia collected by "foreign" companies
in British territory.
(e) The books of all "foreign" insurance companies to be open to inspec- tion by "properly appointed" auditors, and to be kept in English.
885/25
PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-Page 541
502
PUBLIC RECORD OFFICE
Reference :-
CO.885/25
ALLY WITHOUT PERMISSION OF THE | COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
| PUBLIC RECORD OFFICE, LONDON
104
The provisional programme embraces many important questions, some of which deeply interest this Colony.
My Committee are fortunate in securing as the representative of this Chamber one who has such a first-hand knowledge of conditions of trade in southern China. The liberty is taken herein of indicating the trend of commercial thought as regards certain questions which will receive the attention of the coming conference. The expression" commercial" in the preceding paragraph is used advisedly, in that it is duly recognized that local trading interests must be subservient to Imperial policy
The circular, dated 30th December, 1915, announcing the conference, suggests, among other matters, for consideration:-
(1) Fiscal Questions.
(a) The adoption of the system of preferential tariffs within the Empire. This is a knotty problem as regards the Colony of Hong Kong.
As you know, we are merely a depôt-a godown. Even a small tariff may give an undesirable fillip to direct trading with other ports-may, indeed, encourage the establishment of a new port in southern China to the detriment of Hong Kong. A tariff on foreign goods entering Hong Kong would mean a double tax on the same goods entering China via this port.
Should we gain Imperially what we lost locally?
On the other hand, if an exception were made in our favour in a general scheme of Imperial preference, the import of foreign goods into other parts of the Empire via Hong Kong, and duty free, would have to be guarded against.
(b) The question of preferential trade relations between the British Empire and Allied nations.
If this resulted in Hong Kong becoming a depot for exports from China in order to qualify for preferential treatment it would largely increase our trade.
Would the preference extend to shippers of all nationalities?
(c) The measures which should be taken within the Empire against enemy
countries in respect of manufactured goods and shipping.
This chiefly concerns Hong Kong as regards shipping, and, being the last of a chain of British ports, it depends upon what is decided as a general British policy. The more ships using the port the better for our local prosperity and taxes.
(d) Measures against the dumping of enemy goods within the British Empire. This is a question of general policy throughout the Empire.
(2) Legislative Questions.
(a) Amendment of the laws relating to nationalization.
It is hoped in future that the nationalization laws will be drawn up and administered on much stricter lines.
(b) Compulsory registration of aliens throughout the Empire.
My Committee are in favour of the compulsory registration of aliens throughout
the Empire.
(c) The question of licences to trade and other regulations affecting foreign firms and companies.
Foreign firms and companies should only be allowed to trade under licence. (d) The prohibition of contracts with aliens which may have the effect of restraining Imperial trade.
Generally in favour of this.
(e) Reform of patents and designs and trade-marks law, with the object of establishing a uniform basis throughout the Empire.
Generally in favour of this.
(The application of the principle of Imperial preference in taxation, and the adjustment of the present system by which double income tax is charged within the Empire.
As you know, no income tax is payable in Hong Kong. It is recognized that che difficulties in the way of imposing such a tax on a community mostly Chinese are probably insuperable. To tax the small European population only would be iniquitous. It is held that the Colony already bears a fair share of the Imperial burden in the form of the military contributions.
105
(3) Voluntary action by Chamber of Commerce and Board of Trade, (a) Limitation of members of Chambers of Commerce, etc., to British-born subjects.
There again we are peculiarly situated with a cosmopolitan trading popula- tion, contributing to the prosperity of the port. However, the formation of a purely British Chamber has already been tentatively considered, and if a general move were made in that direction we should probably take the necessary steps to follow suit.
(b) Appointment of additional Trade Commissioners by the respective Govern- ments of the Empire.
It is recognized that the British Consular Service leaves much to be desired in its relation to the furthering of British trade interests. There are some bright exceptions, but, generally speaking, the usual type of consular official is not sympathetic to the trader. It is not his fault. His training does not equip him with the trading instinct, if one may use the expression, and he cannot recognize openings for trade expansion.
On the other hand, the type of man who would be really useful is he who can demand a higher scale of remuneration in actual commerce than a Government would perhaps be able to offer.
The appointment of such men to suitable trading centres might make necessary an all round raising of consular emoluments to level things.
If properly trained men were appointed the result would be undoubtedly beneficial, but the selection should be made by business men themselves. The choice by legal legislators would probably only mean an additional Imperial burden.
The Commercial Attaché of the present type would be of comparatively little value.
(c) Encouragement of inter-Imperial trade exhibitions,
We are not in favour of local exhibitions of British manufactures which can be used to supply Eastern competitors with models for copying purposes.
(d) The promotion of closer trade and social relations within the Empire and in relation to Allied countries.
A very worthy ideal.
I enclose, for your information, two letters recently addressed by this Chamber to the Hong Kong Government. They give some indication of a feeling among the Inercantile community of this port which is rapidly hardening, and would appear to be shared by the British merchants of other Far Eastern possessions.
My Committee leave the expression of their views to you in the fullest con- fidence that you will interpret them in the interests of the Empire as a whole, and this Colony in particular.
Yours faithfully,
E A. M. WILLIAMS,
Secretary.
Enclosure 2 in No. 30.
RESOLUTION MOVED BY THE HONOURABLE MR. P. H. HOLYOAK.
It is the opinion of this Council that it is in the best interest of the Colony of Hong Kong that persons of German nationality should be excluded therefrom for a period of at least ten years following the declaration of peace; and that, subsequently, they be only admitted into the Colony under strict licence.
Enclosure 6 in No. 30.
HONOURABLE COLONIAL SECRETARY,
1. THE proposals of the Chamber of Commerce are as follows:
(a) "British" traders to insure only with "British" companies.
46
»
British" companies to reinsure only with "British" companies. 'British insurance companies to employ only "British” British territory.
agents in
(d) A tax to be imposed on all premia collected by "foreign" companies
in British territory.
(e) The books of all "foreign" insurance companies to be open to inspec- tion by "properly appointed" auditors, and to be kept in English.
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