CO129-442 - Governor Sir May - 1917 [4-6] — Page 362

than in Hongkong. Instead Hongkong as a free port concen trating within itself the bulk of the foreign commerce of South China, iti would became one of a number of ports all struggling for a part el the trade. All this may actually come about as the result of the war, for the Germans will in any case not very readily return to Hongkong, but to find a body of British mer- chants there 'deliberately advocat ing a policy that must in the end damage the pre-eminence of the port indicates a strange ignorance of economics.

The policy advocated by the Hongkong Chamber of Commerce, despite the warnings of such an authority as Sir PAUL CHATEL, not only ignores economics but is blind to considerations both of principle and expediency. As the General Officer Commanding the Forces at longong said, “The aim

object of é éry war is a lasting 'peace, and thighrotion is quite con trary to that idea." How could peace be made on the battlefield and the restrictions of a state of war be maintained in commerce? The re- solution of the Hongkong Chamber of Commerce will be received with the greatest delight by the mili taris of Germany, who will use it. Ito strengthen the resolution of the peo to continue the struggle. It will correspondingly depress the effo of those Germans who are opposing the militarists and urging the abandonment of all schemes off aggression. To our own men who have sacrificed position and pros. pects to serve their country and ex- tablish a princip it will come as a cold douche, for, rightly or wrongly. | the resolution will be interpreted as the 'attempt of a body of mez:< chants to secure for a term of years after peace is declared a monopoly of trade which they have enjoyed! during the war. Those working men) in England who are already looking] askance at the war and the sacrifices? it is involving will regard the declaration of policy as proof of the charge made by certain of their lenders that the war is being waged in the interests of capi- talism. Our allies will be re pelled by such an exhibition among British merchants of a polier of racial discrimination; neutrals wili, took upon it as justifying the false German charge that Britain entered into the war in the hope of destroy- ing German commercial competition, Thus from the point of view either of economics or sentiment, of priu- ciple or expediency, the policy ad vocated by the merchants of Hong- kong will not bear examination, while it is calculated to do serious | disservice to the cause for which

Britain is fighting. Reflection under calmer conditions will perhaps make this evident in Hongkong itself. It is not improbable that the time) will come when the refusal of the official members of the Legislative Council, supported by the Chinese representatives, to allow such a policy to go forth as that of the Hongkong Government will meet the approval of British merchants in Hongkong as it will certainly have the endorsement of the Government and people at home.

360