1940-02-28 — Page 2

SUPPLEMENT TO “CHINA MAIL,” FEBRUARY 28, 1940

CHINA'S TRADE AND FINANCES MRS

(Continued from Page 1)

SHANGHAI REVIVAL

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Of great importance too was the manner in which last year Shanghai re-established itself, as the main mänu- facturing and supply depot for such parts of the interior as can be reach- ed (and these are many), for coastal ports and for countries further afield. A clear indication of the growth of j this industrial activity is seen in the consumption of electricity supplied by the record output: This was in spite of the fact that Chinese factory owners still left unoccupied and unworked important plants in the Northern and Eastern parts of the Settlement.

tional expenditure. But the outbreak of the war with Germany has brought about a change in the situation.

It has been necessary to impose vexatioue war-time restrictions, duties have been Increased, and new taxation is envisaged in order to enable Hong Kong to bear its share of the war burden of the Empire,

war and which resulted in such a disastrous reaction.

CONSERVATIVE POLICY Finally, Gentlemen, I want to em- phasise that we must not regard the coming year with camplacency.

in

,trust that this, war will yet re- sult. In the establishment of higher and nobler standard of conduct between nation and na- tion and between man and man. I now beg to propose the adoption of the Report and Accounts as pre- sented, and after they have been se- conded I shall be pleased to answer to the best of my ability any ques- tion that may be asked.

Seconder's Speech

*

We are recommending" a con- servative policy in the' distribution of profits, and are conserving our resources in order that we may As a consequence the ordinary re- face the uncertain future with a venue of the Colony may be indirect- reserve of confidence. I trust that ly affected before very long. But all British firms will do likewise, apart from essential expenditures for

for there are few. signs of any defence purposes the Colony has been

striking change for the

better, spending, and is proposing to spend,

Mr. E. Cock, who, followed, said:- being likely to come over the considerable sums on unproductive

Mr. Chairman-Ladies' & Gentle- political situation out here or In men, Before I second the Chairman's measures which entail continuously Europe in the near future. While there is a strong under-increasing overheads, including pro-

proposal that the Report, and We have been warned by our Gov-counts be adopted, I would like, if Ac- current of optimism in commercial vision for new salaries and pensions, ernment of the difficulties ahead. The shareholders will bear with me for Industrial circles in Shanghai, welasting for many years. Once, such Chancellor of the Exchequer said re- must emphasise that so long as the commitments are made it is exceed-cently that the nation will

a few moments, to submit some ob- administrative problems of Greater ingly difficult to prune them down, probability have to swallow drastic from my own opinions.

allservations, needless to say derived Shanghai are unsettled there will be so I believe that most of us concur medicine to escape the diseases which reasons for dissatisfaction about the with the remarks

The first and rather obvious.com- of the War Re- very seriously threaten us. None of ment is that net profits, compared situation there. A welcome first venue Committee about the continu- us can tell what this mad world with the results of recent years, are step has recently been taken to tide ous rise in the cost

of holds in store a few months ahead. down about two million dollars. The over the present Indeterminate Government and support' their re. This being so it is immensely period, but much

Im-explanation that commendation that an

investments in official in-portant that we should concentrate Shanghai, and presumably in China done,

vestigation should be held to ascertain all our attention on helping to bring generally are responsible, was hard- About the financial situation of the whether economics cannot be effected. the war to a satisfactory conclusion. Chinese Government I cannot say any

ly necessary. more than your Chairman could last

BUSINESS IN JÁPAN

Some 40 of our staff employed in There was little

London at the outbreak of war are year. Recent official figures show that

change in the the note issues of the four Government scope of our business in Japan dur- now in the armed forces, and a few Banks have increased about 1,300 ing 1939.

others are gradually being mobilised. A considerable expansion Moreover, the source of supply million dollars in the past 18 months. took place in the values of foreign

our Eastern staff has now dried up, Considering, amongst other reasons,

trade, and exports to what the Ja-

so the time may come, and I countries

fear the difficulties of communications, the panese call the Yen-bloc

undoubtedly will come, when were exceptionally high-that is to

we lower purchasing power of the dollar,

shall have to put up with serious and the disorganisation of the Banking China, Manchoukuo and the Kwan-

dislocations and inconveniences. When system in many parts of the interior, tung Leased Territory. this increase is not regarded as ex-

this is necessary we shall not complain. I am quite sure that British subjects in 'cessivé. A great deal of valuable

Hong Kong and the East generally agricultural and industrial develop-“

are keenly anxious to be called upon ment is taking place in West China

to make any sacrifices that will help which also necessitates. an expansion

our cause. We do not want to escape of the note circulation.

because of our residence in this part of the world.

remains to be

for

We know only too well the uncer- tainties which exist and persist since the outbreak of what is known ce the "China Incident."

Let us hope that the distressful ordeals to which her people have been subjected will result in China finding a yet greater soul than that which she has 60 va.. llantly striven to preserve. I now refer to the Chinese Gov- ernment Foreign Loans.

+ To me, as the man in the street in financial matters, it appears, odd that any group of people should be per- mitted to be in China and to try to take over her assets while, ignoring her liabilities. As I see it, the right to collect China's revenues obliges the collector to pay her just dues.

It is clear, however, that the economic system in Japan is un- dergoing severe strains and it is by no means easy to judge how developments will work out in the present year. The European war CHINA'S CURRENCY

has benefited the country, but not Notwithstanding the establishment

yet so much as was hoped.

TIENTSIN TRIALS of the Chinese Currency Stabilisation tion to take advantage of the op- get that out here

Japan is certainly in a better posi-

Our friends at home sometimes for- Fund last April, there arose through-portunities now opening to the Far have often had to put up with grea- British Subjects out the year so many adversé cir- East as a result of the

I am glad to hear from the Chair- cumstances that it is remarkable how others, but the many and increasing ever experienced in the Home Coun-ligations as soon as they are able. In

war than ter hardships and

man that the Chinese Government will trials than are resume the full service of their ob- well China's currency stood the strain. dimculties resulting from the conflict try. The unsatisfactorý situation in regard with China are a serious handicap.

Without going back further, doing thisnthey will continue to hold to the Federal Reserve Bank hote issue in North China further deterior- countries in the East where we have for the past nine months and the I have little to say about the other Tientsin people have been enduring

take for instance the conditions which our respect: ated after March 10th when the use branches.

SHANGHAI AND HONG KONG, of Chinese legal tender was officially the war conditions were dull and fea-of the smaller ports, about which that Shanghai will recover its posi-

Up to the outbreak of state of affairs at Hankow and many

I fully share the Chairman's view banned by the Provisional Govern- tureless, and it is a cynical reflec- considerable indignation has been ex- tion, for, I believe, that natural things ment at Peking: This enhanced а tendency to seek safety in commodi- that when war broke out trade at East.

tion of the tragic state of the world pressed both at home and in the which have come into being of them- ties or foreign currencies. - In May came the inaugudration in Philippines and the Netherlands Inter prepared in firmness of

once improved in India, Malaya, the the past make us perhaps all the bet-sons which

Such experiences now and in selves will continue for the very rea- created, them.. Nearer Central china of thế Huâ Haing dies. We trust that while traders inmination to carry on out here

deter-home is Canton, cut off now from -ndBank armed with authority to make these countries will obtain reasonable to face with confidence whatever the only confidence and contact for

and both China and the world, needing ́ ́another" new issue bf notes. Thëse | advantages from the rise in the prices future may have in-store-

its actions were in themedivés sufficient | of the primary commodities, which to undermina confidefcé.

they produce, they will at the same Moreover, to the existing keen mer-time remember the lessons of the chant requirements for exchange to past. It is satisfactory that the cover imports, as already mentioned; | Home Government, as well as local was added further pressure in the authorities, are taking measures to early summer by an even more vigor-check speculation bus demand for import goods, and which was so rampant in particularly for raw cotton. This was

as

in turn followed, as so often happens, by rumours and spéculative demands for exchange: As à résult the rate could not be held at the higher levels. Eventually, after falling as low 3:3/8d., the outbreak of the European war brought a revulsion of feeling and, with a better export outlook, the end of the year showed a steadier trend: The existence of the Stabilisation Fund remains a powerful factor in the background and there is every reason to expect that it will serve its purpose.

HONG KONG FINANCES Ae régards Hong Kong, your Chair- man last year said that the currency and finances of the Colony were sound and that we looked forward to the future with confidence. Taking äll things into consideration, our con- fidence has been fully justifled; trade has kept up and our local companies have done well despite many an- xieties; Government revenue has been maintained in a wonderful manner and the Colony's currency is as sound and as solid as ever.

There are, however, certain aspects of the financial situation of the Co- lony which give rise to uneasiness. In the past three years expenditure: has Increased by no less than one- third. It is true that there have been some special reasons which partly account for this, and fortunately re- venue has kept pace with the addi-

and profiteering

the

last

And come what may we shal! continue, whatever others may do, steadfastly to uphold those tradi- tions which Lord Halifax récent- ly described as "the old standards of conduct and human decency laboriously built up by mankind." By these methods we forvently

restoration.

Likewise I am in accord with the Chairman's rėmarke - about Hong Kong. I would like to see a greater proportion of the Cb- lony's revenue ploughed back into the Colony. It je a policy which I believe always pays.

(Continued on: Page 3)

Speolát keep-fit olassen for women;of the London A.F.8. are takin Company Omcer Disach, is a Danish trained physical Instructor and the is conducting a series of classes to

place in London. Their health offi ariable likdiy students to become Instructors themediver. Photo shows Company Commandal bleach P.T. class in Glerkenwell. (Copyright, Fox).