CO885-(25-26) — Page 543

PUBLIC RECORD OFFICE

mc.o.

Reference :-

885/25

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

| PUBLIC RECORD OFFICE, LONDON

1913.

108

Enclosure 2 in No. 31.

RETURN OF EXPORT OF Sponge and SisAL DURING THE LAST FIVE YEARS.

£172,051

1,843,653

£148,319

藏藏慘

8,067,485

7,249,486

Sponge (lb.)

(value)

Sisal (lb.)

11

(value)

40480

SIR,

1912.

2,157,495

£64,427

1914.

1915.

1,381,537

1,527,422

£125,044

£124,488

5,605,T43

7.968,531

1916. 1,317,622 £136,551 8,369,245

£69,950

£46,685

£73,399

£114,465

No. 32.

HONG KONG.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 14th August, 1917.)

(Confidential.)

Government House, Hong Kong, 3rd July, 1917. In continuation of my despatch No. 156, of the 10th May, 1917,* I have the honour to transmit the enclosed copy of a memorandum by the Secretary for Chinese Affairs, reporting the result of a reference to the District Watchmen's Committee the most influential Chinese body in Hong Kong, comprising the leading Chinese merchants and bankers here-of the questions contained in enclosure 2 in Mr. Bonar Law's Circular despatch of the 25th of September, 1916.† 2. Paragraph 3 of Mr. Hallifax's minute is not quite clear. The meaning intended to be conveyed is that, while it is not suggested that the existing rules for the recognition in China of British subjects of Chinese race by His Majesty's consular officials should be modified, a wider measure of protection and help should be accorded to those who are recognized.

3. I am glad to be able to report that British merchants have now shown that they more fully realize the importance of the acquisition of the Chinese language by members of their European staff, by establishing under the auspices of the Hong Kong General Chamber of Commerce a school for the teaching of Chinese to Europeans.

I have, &c.,

Enclosure in No. 32.

HONOURABLE COLONIAL SECRETARY,

F. H. MAY,

Governor, &c.

THIS matter was circulated for the consideration of the District Watchmen Committee some time back, and brought up at the regular meeting of 13th June, 1917. Mr. Chau Shau-son's memorandum (attached) was read and made the text for discussion. The points he made were all endorsed, and others emerged during the meeting. I summarized them thus:

A

1. The questions are too wide and perhaps not quite definite enough, when analysed for Hong Kong to attempt anything in the nature of a full answer. But China and Chinese trade are of first class importance to the Empire; Hong Kong is closely concerned with this aspect of the case; and the members of the Committee venture to make general remarks out of their own experience on it.

2. British trade has suffered from British "conservatism," as the memo- randum says.

In the freer language of the general discussion, this became

"rudeness." "British pride," want of consideration," "cocksureness,"

British merchant German or a Japanese would find what his customers wanted; would offer his customer what he had for sale, on the "take it or leave it" prin- British merchants and ciple. "It is good, and if you won't buy, others will." banks lose business by insisting that all Chinese should deal only through the compradore. In other nationalities, the heads of firms are quite ready to get to know their customers and deal direct with them; and this consideration is appreciated.

* No. 80.

† No. 1.

109

And other illustrations of the same nature. All this should be cured; and cured principally by a wider knowledge of the Chinese language, which would permit personal inquiry and contact. Even a small knowledge of the language which would involve some acquaintance with custom--would enable many mistakes to be avoided-mistakes of which no open notice is taken. but which are claimed by the Chinese as tactless. They are normally, perhaps, an over polite race, and notice all these little things.

This knowledge of the language would go very far towards bringing the manufacturer in much closer touch with his market. He could afford to train and employ travellers at a "salary," in a way that few of the "commission agents," through whom most of the business is now done, could possibly do. Much of the German pushing of trade was through the efforts of the immediate servants of the manufacturers.

3. The protection given to British subjects in China should be widely extended. At present, the Committee maintain, it is very difficult for Chinese to get access to British Consuls; and when they do get it, they get little assistance from the Chinese staff, who are largely chosen from those acquainted with official methods and etiquette rather than with commercial matters. In any event, the consulates are inclined to look for reasons for refusing assistance, e.g., though the applicant may be a British subject, he may not have registered, or he may be just beyond the Treaty Port limits; while it is entirely desirable that the tendency should be the other way, to look for reasons which would allow of assistance being given.

It is not meant that the regulations concerning the status of a British subject should be in any way relaxed. With the further protection and assistance suggested, and the added difficulty of affording it, it might even be necessary to tighten the regulations in some respects.

4. The Committee were unanimously in favour of establishing schools for teaching English in China, but at the same time were of opinion that they could hardly be a real success unless they were under some very close control-such as that of the University-over the staff.

14th June, 1917.

Honourable Mr. E. R. Hallifax,

Secretary for Chinese Affairs. DEAR SIR,

E. R. HALLIFAX,

Secretary for Chinese Affairs.

45-c, Robinson Road,

Hong Kong, 11th June, 1917.

I AM in receipt of your favour asking me, as a member of the District Watchmen Committee, to express my views on several questions with reference to the commercial and industrial policy to be adopted by the Imperial Government after the War.

It appears to me that these questions of vital national importance can only be satisfactorily dealt with by statesmen, economists, specialists, manufacturers, and business men of great experience, and for amateurs like us to present any opinion on them seems out of place.

I take it, however, that the intention of your questions is to invite an expres- sion of thought on local commerce and industries rather than to consider the subject of economic policy of the Empire. If so, I think I shall be able to offer a few suggestions.

The value of Hong Kong does not lie in her own trade or industries, for she is not specially a place of production, nor is she herself a territory of heavy con- sumption. Her importance lies in the fact that she is a port of distribution, the main channel of communication of trade for the southern part of China.

In order that the prosperities of this emporium be maintained, and the general commerce and trade of Great Britain extended to the whole, and not a portion of, China, it is necessary to consider the relations existing between the two nations and to adopt suitable measures to strengthen them, so as to secure a further expan. sion of commerce and trade to their mutual interest.

I venture to remark that the British merchants do not understand the business characteristics and the ways of the Chinese so well as their competitors, particularly the Japanese and Germans.

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