1955-05-02 — Page 9

IL

TRADE and

THE CHINA MAIL, MONDAY, MAY 2, 1955.

COMMERCE

SECTION

COLONIAL DEVELOPMENT CORP

Chairman Anticipates Bright New Era

From Ronald Boxall

London, May 1.

The Colonial Development Corporation has entered into a new-and brighter-phase of its chequered career. For the four years since Lord Reith took over the chairmanship" the Corporation has been preoccupied with the "serious and sickening" task of limiting and reorganising its activities. Now again in Lord Reith's words "the emphasis has swung towards looking forward instead of backwards." The proof of this is that last year CDC "came very near to breaking even on current operations."

Lord Reith's report makes diverting reading. He does not hesitate to criticise Her Majesty's Government if he feels criticism is deserved. His language is not that of a civil servant. But he gets results.

N.Y. COTTON In various parts of the world to

MARKET

REVIEW

By William Plunkett

own limitations compensate built up an

and tries

to

for them. It has cineten staff ct

whenever

Malayan Tin Production

Singapore, May 1.

Official statisties issued here showed that the prU- duction of tin in Malaya for the Brst three months of this year totalled 337,615 piculs which was more than 700 tons aver the corresponding figure for 1954.

In March the production, of iin-metal amounted to 5.189 tops

Coal production for March was 18.222 tons, and bauxite production 14,181 tons. (337.615 picuts- approx. 20.334 LOTIS).— France-Presse,

HONGKONG

STOCK EXCHANGE

Adverse Factors Affect

London Markets

From Our Own Correspondent

London, May-1.

The general election and the implications of the Budget are compelling factors in the London stock markets at the moment. The former keeps down the volume of business and the latter ensures what little is done is by sellers rather than by buyers.

In these circumstances prices, especially in the gilt-edged section, took a hard knock last week.

The weakness of gilts was marlly attributable to selling ci short dated stocks by banks

needing to restore their liquidity NEW YORK

ratics. Sellers have not come forward to absorb this stock-

Government broker cannot

pase of Mr Butler's sterner

and money policy

private | institutions and investors will not because they fear the down- !ward movement of prices stil

has some way to go.

Unlike most of the score or so of similar organisations that have been set up since the war

its own; but excellent though it From Our Correspondent) because it would defeat the pur- channel

capital, into under is there are things it cannot do. developed territorits CDC has CDC therefore tries the disadvantage of being com- pelled by its terms of reference pay 113 way. Losses on un- seund projects must in the long run be made good but of the profits of successful ventures.

From the British taxpayers' point of view this is all to the god but it accounts for more of CDC's headaches than any other

[actor.

more UNFORTUNATE

New York, May 1. Cotton futures trading

became last week two-side in a less active market.

PROSPECTS

Business done on the Hong- possible to associate private en-kong Stock Exchange this morn terprise with its projects.

ing amounted to $388,026.20, Noon quotations and the morn Established industrial con-

technical knowing's transactions: cerns have the

To- how: CDC has the money.

they can achieve much gether

EANKS impossible by that would be

either geting slane. So all seven of CDC's new projects last year were undertaken in association with private enterprise.

But CDC dces

simply hand over money to private enterprise and invite it to get on with the

Cor- job. The poration encourages it to put up some of its own cash. This way its demonstrates t

not only And confidence in the project but stands to make a financial loss

prise fails,

ماز

Two-thirds of is £10 million accumulated deficit arose out of At Friday's close the list ruled "unfortunate" projects started 39 points higher to 34 points before Lord Reith took over and lower (or up $1.95 to off $1.70) subsequently abandoned. a bale compared with the pre-his

this financial millstone" ceding week.

management The prompt ab- something the new sorption of May delivery notices would like to rid itself of Theong with CDC if the enter-

by southern mill interests and

other trade accounts tightened

Government

agreed to waive interest on los capital but re-

on old crop fused the Corporation's request

up the situation"

months. As the week drew to

o

wipe out the old debt

a clase, the May open position altogether. approximated 30,000 bales,

INVESTMENTS

SHARES BUYERS SELLERS SALES

213

1030 1040

35%

TV 1340

HK Bank... 154 154)

East Asia

INSURANCES

Union Lombard DOCKS, ETC.

K. Wharf 23.70 24.16 500 24 12 300 a 12 Provident 10) 11 80 Wheelock... 7!4 2000 x 7.30 LAND, ETC. Ink Hotel HK Land

Humphreys

XRTS

Healty

171-17.00 2800 - 17.00

67

2912 6 67

5109 005 5:0

16.20

2.13

The gilt-edged market is also losing business

that might otherwise come to it because some industrial companies are investing their

surplus funds

STOCK

REVIEW

By Elmer Walzer

New York, May 1. Railroad shares featured

in treasury bills, now yielding a wide-moving stock market over four per cent, and other last week, stock outside the exchange...

נו

UNUSUAL PATTERN

Selling of short dated Government stocks and the abence of buyers has resulted in an unusual pattern of yields. Shorts yeikt from over four per cent for the earliest maturities, mediums substantially less, and irredeemables again-over four

A per cent. belief that long dated stocks must soon rise to restore the normal differentials is a further reason for the pre- 10001435 sent cautious

anitude ofi 1000 or 40 investors. 2000 14.80 33 500 38

1.000 ve 381⁄2 500# 383%

UTILITIES

Trzm Star Ferry 2120 21.40

mati Ferry 107 108 450 m 108 C. Light (0) 18.60 18.50 2800 - 18.10

1077

government policy

Another one of CDC's func- tions is to invest money in The matter has now been other people's

projects.......i loan. to £8,000,000 is now on Trader attention in new crop pigeon-holed and is likely months become distracted by remain so for a long time to 13 undertakings concerned with

In the meantime Lord' uncertainties over

future come.

power, communications comments on price Reith

somewhat housing in territories as widely

statutory testily: "CDC has а

as Malaya and the separated

to

JB

and

•

Electric

Macao Elec.

XD Telephone

INDUSTRIALS

Cement Hope XD... 15.40

STORES. ETC.

Dairy XD... 20.70 112 20.20 2015 20.00 Watson 12.30

10.80

32 32

4000

321)

4003 32

1000

32

29.20 29.40

2

L. Crawford 2311⁄2 COTTONS

future."

supports, production controls and the question of a subsidy for obligation to pay its way, taking West Indies. Last year these with another; until investments brought in new colton exports. Pending one year

the £340,000-"an clearer view of the outlook, reasonable relief is given

income which traders curbed market part-legacy of the past must be cipation in the later sessions. factor in CDC's policy for the gives the Corporation additional freedom of manoeuvre in taking

elsewher:

and

has enabled

early

doubtful schemes For the Corporation the

chance to prove Liverpool

other new question of what should be done be given a

£6 million deficit themselves beyond what would the early selling about the crop months,

Ecen justified." surge from that direction coin-piled up before 1951 is a matter otherwise have

success of these policies with

SELLING SURGE

לגום

cided

proposals

Senale group to expedite.

of

principle. As the ajol the on the old debt has been

interest

risks

he

sale of 300,000 bales of surplus it is not a physical Shows

up in the results. Lust

reduc-

The mid-April parity' price- showed an unexpected tion. The government plan Fate will be determined on the basis of the July parity, the month-to-month changes now are followed by increasing in Lerest.

financial

SOME DISCUSSED

year for the first time

a net income

ncluding

from

are income of £1

had

against a 1953.

Fil-

Hort

Texte Corp 5.70 3.85 5000 2.574

8,320 Nanyang....

MISCELLANEOUS

Yangt.... 6.20 0.30'

Singapore

Stock Market

colton overseas, and a recom-the "milstone" is an mendation for a subsidy to pre-ment rather than a vent a further cotton surplus burden. Meanwhile there

other more accumulation, «

pressing problems loss of £130,038 in

rent projects teen of the 56 Current for the Corporation. to face...

Teached have now

the trading stage and these brought in a pront of £280,000 £70,000 more than the previous year.

Atter

and administrative Some of these are discussed in

expenses, but before Lord Reith's report The fore other mast is the question of pro- allowing for colonial income tax viding amenities without which and Government interest show a net loss some new enterprises cannot ge

accounts the year of only £85,946. compared with the losses CDC experts may decide that £403,334 in 1953 and £838,277 project offers a reasonable re in 1952-London Express Ser turn on a capital investment of vice. say £500,000. But if as often the case. further expen ditures of £100,000 is required. for the provision of essential

houses arkd

The latest parity of 35.22 ahead. cents for middling inch cof- ten was down 12 points from margin but up 13 points from a year ago United Press.

Sugar Export Quotas Raised

is

welfare nities for those who are to

return on the bigger capital may be too small to make the

and well conceived

London, May 1 thing worthwhile. And so many

Because of the tight supply position in the world sugar

trade, the basic export tommages/ices are stillba

of the producer countries which

simply

But CDC does not ere members of the Interna pose the question; it has what

tional agreement have been raised by 10 per cent,

the In-

Council's

the for This of

Group Demands

Passage For Bills

New York, May 1 It believes to be the answer.

Forty-six prominent citizens બુડ "Here," says Lord Reith,

for co-ordination of two today urged their fellow Ameri cans to demand passage of two

considered

and

in

me tire and CDC." The associa. Congress to extend the Ro

would crableí

Singapore, May 2.. Brokers

today quoted the following stock prices:

Opening 30/6 British Borneo Petroleum - Consolidated

Smelters

20/6 Ord Fraser & Neave Ord

$1,27 Fraser & Neave 14 pe cum

PIT...........

..!.. $3.50 Hongkong Shanghai Bank 3815 Malayan Breweries

$177 Raffles Hotel

Singapore Cold Storage South British Insurance Straits Trading.

Straita Steamship

Government The

securities Index was down to 07.14 n Thursday compared with 98.90 a week earlier. Prices stiffened on Tuesday on the firmness of sterling and the improvement in Britain's terms of trade, but renewed selling put them down again next day.

The all list showed a rise of nearly 1 points on average while other averages were up only a trifle.

The market ignored a hike in margins announced after the moved close a week ago and higher on Monday and Tuesday.

"On Tuesday he Industrial average set a new high for all time and rails were at their best since Oct. 20, 1929.

Declines on Wednesday and Thursday wiped out 7.45 points of the industrial decline, and a smaller portion of the rail gain. The major groups rallied on Friday on reduced volume.

· GOVERNMENT THREAT

Page

EVERETT LINES

EVERETT ORIENT LINE Fast regular freight refrigerator passenger service to Korea, Japan, Philippines, Indo-China, Siamı, Malaya, Rangoon Calcutta and Chittagong. "REBEVERETT"

Arrives May 5 from. Singapore, ; Sails

May 3 for Kobe & Yokohams,

“NOREVERETT":

Arrives Sails

May 21 from Singapore, Atay 22 for Kobe & Yokohama, (Accepting cargo for transhipment Kobe/Pusan, and Kabe/OkinawL),

EVERETT STAR LINE

Fast regular freight — refrigerator service to Japan, Malaya, Colombo, Bombay, Karachi and

Persian Gulf.

(89)ject to mducemens for- diract call Korea),

"STAR ALCYONE”

Arrives

Sails

"THAI"

Arrives Sails

May 14

from Singapore. May 14 for Kobe & Yokohama,

May 18 from Japan. “

May 19 for Singapore, Port Swet- tenham, Madras, Colombo, Karachi, Bashah, Kuwait & Bahrein.

́(LIMITED PASSENGER. ACCOMMODATION)

(Accepting cargo for transhipment Kobe/Okinawa) Kobe/PusanN

And

EVERETT STEAMSHIP CORPORATION S/A (Incorporated in 'the Republic of PataIRA with Limited Liability)

Chinese Department: Telephone 28293. Queen's Building, Telephone 31206.

PENINSULAR

QUIS NOS FERSABIT

& ORIENTAL

STEAM NAVIGATION COMPANY

R.M.S. "CARTHAGE"

SAILS:

NOTICE TO PASSENGERS

There was a tendeney to take BAGGAGE: profits from time to time on the theory the Governmeņ; agencies were aiming steadily to curb the

The industrial, share market was unsettled by a fall of gilt-arket rise.

while the threatened edged rails strike and the publication

The news of the week was considered highly favourable, of the Socialist election mani-condsing of higher production. increased carnings and some dividend hikes.

.

movis

new did

festo foreshadowing nationalisation nothing to brighten the outlook.

INDUSTRIALS' DOWN

The steel companies, notably US Steel and Bethlehem reported The Financial Times indus-record first quarter earnings:

these units were

not trial share index fell from 187.7 But

Big to 183.9 in the week to Thurs generous with dividends. day's close. It would probably steel held its dividend at $1 a have

fallen more had it not share. Bethlehem declared $1,50′′ been for some.. excellent com- which compared with a $2.25 pany results which put a little payment in the first quarter of heart into the market.

1954 and $1.25 a share for each of the last three quarters of 1954, Outstanding among these was the announcement by Imperial The Street had anticipated a Chemicals of group profits at a stock split for Bethlehem, and new record of £271⁄2 million had hoped for more in the way over £10 million more than in of dividends. Bethlehem stock the previous year. The divid-plunged 8% points on Thursday end has been raited by. 2% per when

made the report was cent to 20 per cent.

public before the close of the market.

million rise in group sales to

$2.80

$1.75

An interesting feature of the ICI statement is the

£70.

14224

Unlied Engineers Ord

$2,72

Petaling Tin

Hongkong Tin

1/0

$40

Batu Lintang Rubber

$145

the

Kempas

Lens Rubber Estates

Wearme Br

New Serandah Hubber

3,900,000TH CAR

£353 million. But shareholders Automobile companies. $11.25. | were not left to enjoy the con" responded only meagrely to templation of sales at a rate of recent automobile production.

£1 million nearly

day For statement coincided

The auto industry next Wednes- with $2.47

the publication of the Socialstay will produce its 3,000,000th $1.90

manifesto 31.0

which places the car of 1955, the earlier in history.

this figure has been attained sq chemical industry high on the

-5 ex÷dly-China Mail Special.

U.S. RAW COTTON

EXPORTS

ternational Sugar Council, an- ristruments of colonial develop bills now being nounced today.

colonial development Total export quotas for this

ciprocal Trade Agreements Act year will thus be raised from tion of HMG and Corporation and to ratify United States 3,708,000 metric tons 10 4,153,500 Capita! "is a sensible and over membership in the the organisa-

due cbjective; it

New York, May 1. Raw cotton exports by de things to be done which cannot tion for trade co-operation.

Their statement said that the stination as reported in bales by bills were needed in the form the New York Cotton Exchange in which they were now offered for the 1954-55 season to April 40 bolster

our strength and 26 were as follows:

Britain the strength of the nations on Continent our side in the world conflict of Orient. Ideologies ?

༣་་।་

metric tons. The action acnounced today was the now be done.. result of a decision made by the executive.committee in its meet-

inga during the first week of

NOT YET

April. The increase represents an addition, on paper, of 444,300 So far, however, nothing has melric tons to the supply posi-been done to implement this 1on..

proposal The difficulty here is that HMG does not say how PRIVATE ORGANISATION Tho following producer-CD and W. funds are to be

the colonies themselves Mr Lauls Pink, Chairman of Citizens Conference on export the following additional

are approved, HMG makes the International Economic Union,

countries will now be able Vecide that and if their ideas the

Belgium

Bow value (metric ton money available. But one deals: R.Private organization issued a

5,000 that it cannot be long before plea on behalf of the group. 17 Sod Lord Reith's suggestion, is. 60,000 225.000 adopted for its logic is on-

27 Bodafeallable.

Bruril Гострова

Cuba

Czech

nican Repubüc

: 60,000

land

B. 3.

"It is urgent that this b01

passed without amendment.

Coneda Total for period: Same period last yea

list of candidates for national-early. sation. ICI sharts ended the

Best performers when week 144 lower at 43s 11⁄2d market was on the rise included

the

Losts among other industrial metals, shipbuilders and other

special issues. shares ranged to 2s.

cils

In the other markets

Amusements picked up. To- were

firm until Friday when baccos ran up to new highs in Gold several instances in higher prices fell back sharply.

Cornings and Indications of a shares and coppers improved.

pickup in cigarette smoking Rubbers were in demand but after the recent cancer scares

United Press. teas were depressed.

MESSAGERIES MARITIMES

PO Box 53 Queen's Building Tel: 2685 | FAST PASSENGER/FREIGHT SERVICE JE

Balling May 21st sailing June 18th

Exchange Rates "CAMBODGE"

Business Man done in the Inesi unofficial exchange market

at the following Tote B the defeat of this bill would Pri (per 11.

6,81. The new thinking that has destroy GATT and would be an sterling notes (per £1) 10* "PEIRO"

er 10031.40 gone into the Corporation's ac invitation to trade warfare Indonesian rupiah #per 444,500 yities shows tip in other parts among the world's free nations." Bamn ticals (per 100) BIR HAKEIM”

Singapore (Straits) villain at the report CDC realises -Reuter

*Judo-Chin@"plastros: (part-ton)

22.005

20,000

Presz

FAST FREIGHT SERVICE CENES

calling May 12th Balling June 25th

Thursday, 5th May at 12.00 Noon for the UNITED KINGDOM via Stazits, Colombo, Bombay, Aden and Port Said.

Passengers are requested to send ALL BAGGAGE to the Hongkong & Kowloon Wharf Co.'s Godown at No. 2 GATE, CANTON ROAD ENTRANCE, by Noon on Wednesday, 4th May.

SPECIAL NOTE: With the exception of hand packages carried by passengers themselves, ALL BAGGAGE must pass through the Wharf Co.'s Godown for loading on board by ship's slings only.

EMBARKATION: Passengers should embark between 9.30 and 11.00 a.m. on Thursday, 5th May, 1955.

SUBJECT TO ALTERATION WITH OR WITHOUT NOTICE

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