ñamely, that we should fulff our} treaty to Belgion." Sentiment seems a curious term to apply to the honourable fulfilment of an obliga tion. However, MF. HOLTOAK denied that he ignored economic facts. One of the facts he advanced as justify- ing the exclusion of Germans from Hongkong washat almost 60 per cent, of the Gerinha trade in Hong- kong was done in British cargo, and often Lancashire tavellers reported] large sales to man frms when British merchantsbad precisely the same cargo lying their godowns. We can only express our surprise) that such an argyment should be: advanced. Briti manufacturers will be interested to learn that one of the chief reasons for the exclu sion of Germans om Hongkong is that prior to the war 60 per cent, of their dealings wakin British goods. It looks very much like a demand for a mercantile onopoly, and, in- deed, when calmly considered. it closely resembles the idea prevalent in this country that Japanese trade should be conducted solely by Japan- ese.
But Mr. HoLYOAK says that these purchases by Germans of British goods Tajured legitimate' traile because, while British mann- facturers were presumably paid for! the goods they sold, the Germans "That gave long credit to Chinese. credit had to be kept revolving, and therefore it was essential to then (the Germans), in order to carry on 1heir trade, not only to go on selling, but, what was more material to them, to gokon buying at therefore did not matter whether they sold at a Tosa or a prhfifiso long as the credit, kept revolvin
extraordinary explanation of suc cessful Germau competition we have ever beard. It is difficult to believe that it can have been uttered by a commercial man, and appears so 'fantastic that
are not sur- prised at the Governor's sarcastic references to Mr. HOLYOAK's view of credit. Surely the best criterion of sound or unsound methods of trade is success or failure. If the fcredit system as conducted by the Germans was unagiind, as the sepeut examination of ejjemy businesses in Hongkong seems to prove, then it must in the end Tollapse. It is in possible to go on for ever selling at a loss, even if credit is "kept revolv ing." But the British mercantile community have the remedy in their own hands. Let the British banks in Hongkong gemselves against unsound methods of doing business, and the whole of the loss would then fall upon the German banks which financed it. In effect the econo. mic justification for the exclusion of German from kong, after the
gar as Morfaced by Mr. HOLYOAK, with the concurrence of the Cham- ber of Commerce, is that the Ger- my methods of business are un- hodIt is a very weak argument forsion of merchants of one) nation because sound methods of bustless only are aimed at, such a ban should be applied to merchants For all nationalities, who might be rigidly examined us to their methods of business before being permitted to establish themselves in Hong- kong. We are afraid the test would exclude some British merchants. Mr. HORATIO BOTTOMLEY, for ex ample, who in John Bull would en rbusiastically welcome the proposal of the Hongkong Chamber of Com merce, has been responsible for com-j pany methods which have repeatedly! brought him intothe Courts, but he would be perfectly free to begin operations in longkong white a German merchant selling forpor| cash and carefully" avoiding the purchase of British goods fest he night arouse the jealousy of wer cautile competitors would he banned from the Island of Fragrant Streanis.
Some better economic justification; than Mr. HOLYOAK has advanced for the exclusion of Germans from Hong kong must be given before the pro-, 'posal is likely to be endorsed by the home Government or supported by British manufacturers, or acquiesced in by men who have some knowledge of economic factors. Hongkong has attained its present position almost entirely by reason of being a free port, a great emporium to which the productions of all the world can be brought and where they can be exchanged for Chinese goods. It is proposed that after the war this free. dom shall be limited by a ban being placed on the people of a commer cial nation with which Britain is now at war. As a result their ships: would not call at Hongkong. Driven out of the British Colony, German merchants would naturally seek to| develop a rival port on the Chinese coast, and, whatever may happen in wartime, the Chinese Government and Chinese merchants will 10. 'doubtedly encourage a migration
that is calculated to inure to theiri own advantage. A considerable number of Chinese merchants, find- ing that spot cash are the terms in- sisted upon in Hongkong, will gra- vitate to a port where they can have the advantage of long credit. Bri- tish ships would be compelled to call Fat the new port or ports to ge
cargo. British merchants would have to follow their Chinese cus- tomers and adopt the methods of! business of their competitors under far less favourable circumstances
359
No comments yet.
Private notes are available after approval.