62
Appendix II.
A NOTE ON THE EFFECT OF THE SINO-JAPANESE HOSTILITIES ON THE SOCIAL AND ECONOMIC LIFE OF THE COLONY.
Two effects on Hong Kong of the hostilities in China stand out; the large increase in population due to the influx of refugees and the diversion to the Colony of Chinese trade normally conducted through other ports. The special problem of the destitute refugees is dealt with separately below.
General.
Trade passing through Hong Kong was increased abnormally by the diversion of some of the Yang-tse Valley trade to the Canton-Hankow Railway, linked at the end of 1937 with the Kowloon-Canton Railway; and by the large imports both by rail and by the new road of supplies for the Chinese Government. Early in the year Chinese Maritime Customs returns showed the Colony to be handling about half the trade of China coming within their purview; the proportion fell later as Shanghai trade revived, but trade in Hong Kong continued brisk until October. With the fall of Canton and the closing of the Pearl River, there was, after October, a sharp fall in trade with South China and grave fears were felt for the Colony's economic future. Although the intense activity of the first nine months of the year was not maintained, business conditions generally were not unsatisfactory owing to an aggregation of various beneficial influences, among which may be mentioned the diversion of part of the Canton trade to indirect channels, the continued diversion to Hong Kong of other branches of China trade (e.g. the tea trade), the development of manufacturing under Imperial Preference and the continued transfer of minor industries from China, and the well-sustained demand of the local market owing to the increase of population. Many of the refugees, it is important to remember, were by no means destitute.
The increased population had many other effects. There was a rapid fall in the number of vacant tenements. By June, 1938, for practical purposes, all vacant properties had become occupied. A general increase in rents had set in shortly before, and, to protect existing tenants from exploitation, a Prevention of Eviction Ordinance was passed. A considerable demand was shown for Crown Land for both new residential building and new factories. The general level of prices had risen since the commencement of the hostilities, but during the year under review there was a remarkable absence of severe fluctuation. Fresh vegetables and firewood became scarce after the fall of Canton, but the initial rise in price of these commodities was not maintained.
The yield of most forms of taxation was greatly increased, and the profits of public utility companies and other enterprises operating mainly in the Colony were enhanced by the growing population. The Kowloon-Canton Railway had a prosperous year and, even after the limitation of its activities to British territory after the fall of Canton, it maintained unusually high receipts from local traffic.
The general supply of labour was considerably in excess of demand throughout the year. Crime, particularly in the various forms of larceny, not unnaturally increased with the entry into the Colony of large numbers of destitutes. Hospitals were overcrowded throughout the year.
Tourist traffic showed a slight falling off by comparison with previous years, but this was perhaps more than compensated for by the fact that Hong Kong became the main port of entry into China proper. Hotels and boarding houses were full throughout the year.
Considering that the Japanese operations in South China extended to the very frontier of the Colony it is remarkable that no incidents of a political nature occurred within the Colony during the year under review. Outside territorial waters, however, fishing junks were severely harassed, numerous cases of allegedly unwarranted attack being reported to the Government.
62
Appendix II.
A NOTE ON THE EFFECT OF THE SINO-JAPANESE HOSTILITIES ON THE SOCIAL AND ECONOMIC LIFE OF THE COLONY.
Two effects on Hong Kong of the hostilities in China stand out; the large increase in population due to the influx of refugees and the diversion to the Colony of Chinese trade normally conducted through other ports. The special problem of the destitute refugees is dealt with separately below.
General.
Trade passing through Hong Kong was increased abnormally by the diversion of some of the Yang-tse Valley trade to the Canton-Hankow Railway, linked at the end of 1937 with the Kowloon-Canton Railway; and by the large imports both by rail and by the new road of supplies for the Chinese Government. Early in the year Chinese Maritime Customs returns shewed the Colony to be handling about half the trade of China coming within their purview; the proportion fell later as Shanghai trade revived, but trade in Hong Kong continued brisk until October. With the fall of Canton and the closing of the Pearl River, there was, after October, a sharp fall in trade with South China and grave fears were felt for the Colony's economic future. Although the intense activity of the first nine months of the year was not maintained, business conditions generally were not unsatisfactory owing to an aggregation of various beneficial influences, among which may be mentioned the diversion of part of the Canton trade to indirect channels, the continued diversion to Hong Kong of other branches of China trade (e.g. the tea trade), the development of manufacturing under Imperial Preference and the continued transfer of minor industries from China, and the well-sustained demand of the local market owing to the increase of population. Many of the refugees, it is important to remember, were by no means destitute.
The increased population had many other effects. There was a rapid fall in the number of vacant tenements. By June, 1938, for practical purposes, all vacant properties had become occupied. A general increase in rents had set in shortly before, and, to protect existing tenants from exploitation, a Prevention of Eviction Ordinance was passed. A considerable demand was shewn for Crown Land for both new residential building and new factories. The general level of prices had risen since the commencement of the hostilities, but during the year under review there was a remarkable absence of severe fluctuation. Fresh vegetables and firewood became scarce after the fall of Canton, but the initial rise in price of these com- modities was not maintained.
The yield of most forms of taxation was greatly increased, and the profits of public utility companies and other enterprises operating mainly in the Colony were enhanced by the growing population. The Kowloon-Canton Railway had a prosperous year and, even after the limitation of its activities to British territory after the fall of Canton, it maintained unusually high receipts from local traffic.
The general supply of labour was considerably in excess of demand throughout the year. Crine, particularly in the various forms of larceny, not unnaturally increased with the entry into the Colony of large numbers of destitutes. Hospitals were overcrowded throughout the year.
Tourist traffic shewed a slight falling off by comparison with previous years, but this was perhaps more than compensated for by the fact that Hong Kong became the main port of entry into China proper. Hotels and boarding houses were full throughout the year.
Considering that the Japanese operations in South China extended to the very frontier of the Colony it is remarkable that no incidents of a political nature occurred within the Colony during the year under review. Outside territorial waters, however, fishing junks were severely harassed, numerous cases of allegedly unwarranted attack being reported to the Government.
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