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(2) That, inasmuch as alien firma enjoy the benefits of British rule without contributing to Imperial taxation, a tax should be levied annually upon their turnover. Such tax should not be applicable to Asiatics. Should it be considered desirable, the tax might be graduated as between the subjects of Allied, neutral, and enemy states. (The difficulty of excluding all Asiatics is that Japanese firms, who are likely to become severe competitors in the future, would not be controlled.)
(3) That the mail service between British Possessions and Dependencies should
be reserved exclusively for British shipping companies.
(4) That no enemy subject should be allowed to occupy the post of pilot in British waters or any other position affecting Imperial defence or economic independence.
SUMMARY OF CONCLUSIONS.
I. The present predominant position of the Straits Settlements in general and Singapore in particular is due :—
(1) To the unique position of Singapore as the Emporium for the whole of the Malay archipelago, and the entrepôt for Siam, Borneo, Java, Sumatra, and the other Dutch islands;
(2) To the recent rapid development of the Federated Malay States (particularly
in respect to rubber and tin) under British rule; and
(3) To a policy of free trade, ample facilities for shipping and commerce, and
a tolerant attitude towards Asiatics, particularly Chinese.
2. The pivot of the trade is the Chinese or Arab trader with connections throughout the archipelago, who has been attracted to Singapore on account of its favourable position, good shipping and trading facilities, and absence of restrictions of
any kind. It is therefore in the highest degree essential that no restriction should be placed upon his activities.
3. As the trade is largely a transit trade, it is desirable that the Straits ports should remain free, open ports, in order to maintain and consolidate their position as collecting and distributing centres for the archipelago. The imposition of a tariff would be most detrimental to the interests of the Colony.
4. Over 60 per cent. of the imports of manufactured goods in the Colony before the war were from the United Kingdom, and statistics show that British manufacturers were maintaining their position. More, however, should be done in stimulating the demand for Straits produce. At the present time the United States is a greater consumer of the two staple articles of tin and rubber than is Great Britain, and the Continent was becoming the market for miscellaneous produce, copra, &c.
5. The imports from enemy countries before the war were almost negligible, being 2 per cent. of the total values, while the exports amounted to only 5 per cent. of the total values. The competition of German merchants in the Settlements was, however, being felt more severely.
6. The strength of the German position lay in their shipping services. The N.D.L. controlled the Singapore-Siam route, and also the mail service between Singapore and British North Borneo, and the local German agents have made unscrupulous use of their position in order to coerce trade into their hands. Messrs. Alfred Holt & Co, are now making a determined effort to regain this trade, and by according financial support to the Straits Shipping Co. are extending their services among the islands.
7. Japanese competition in goods is mainly directed to those low-priced sundry articles formerly supplied by Germany and Austria, particularly cotton and woollen hosiery. The Japanese are rapidly improving their position in shipping, and enjoy a virtual monopoly of bunker coal in the Straite.
8. American competition is being felt since the war, particularly in iron, steel, and engineering, but the Americans suffer from the lack of marketing facilities on the spot, and when normal conditions recur it is not expected that this competition will be seriously felt. The United States is rapidly becoming a most important consumer of Straits produce, and this fact may tend to react favourably on the trade in American manufactures.
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9. In view of the fact that the Singapore Chamber of Commerce nominates a member of the Governor's Legislative Council, and also in view of the need for a purely British mercantile body in each market to act as the intermediary between H.M. Board of Trade and the mercantile Community, and for the receipt of coufidential commercial information, it is strongly urged that British Chambers of Commerce should be formed in the Straits ports.
10. Having regard to the vital importance of Singapore as an Imperial nerve centre, and the value of its foreign trade, I would suggest that a British Trade Commmissioner be appointed for British Malaya with headquarters at Singapore. His sphere of activity should include the Straits Settlements, the F.M.S., and periodical visits to the markets served by Singapore and Penang, viz., Siam, Borneo, and the Dutch East Indies.
11. While deprecating any restriction on the freedom of the Straits ports by tariff or otherwise, it is felt that some control should be exercised by H.M. Government upon the activities of aliens within the Settlements. It should be clearly stated, however, that in view of the dependence of the Colony's trade upon Chinese activity and industry, and in view of the deep-seated Oriental dislike of restriction, such measures of control should certainly not be applied to Chinese subjects.
The measures suggested are:-
(1) The compulsory registration of all alien individuals and firms, other than
Asiatics, residing or carrying on business within the Colony.
(2) The levy of an annual tax on the turnover of all alien firms, other than
Asiatic, conducting business in the Colony.
(3) The reservation of the mail services between British Colonies and Depen- dencies to British shipping companies. This applies especially to the Singapore North Borneo route.
(4) The prohibition of the appointment of a foreign subject to the post of pilot in British waters, or to any other position affecting Imperial defence or economic independence.
12. The striking development of the trade of the Straits Settlements before the war is likely to continue without interruption after the war. The Malay States are enjoying unprecedented prosperity owing to the heavy demand for their staple articles of tin and rubber, and this prosperity is reflected in the emporia of Penang and Singapore. The future rests in the hands of H.M. Government, and the enterprise and initiative of the British merchant. The measures which should be adopted to stimulate the progress of this, the richest of the Crown Colonies, are essentially constructive rather than restrictive. Every effort should be made to attract the best type of Chinese merchant or settler, The dock and harbour extensions should be pushed forward to a speedy completion, and no money or trouble should be spared on extending and improving the shipping facilities, upon which the future of Singapore depends. British shipping companies should improve their local services with the object of attracting a larger share of the trade of the Dutch islands to Singapore, which otherwise would gravitate towards the Java ports. By this means they will not only provide cargoes for their through steamers, but will bring trade and prosperity to the Colony and its British merchants. British manufacturers should, in! fature, award their agencies and representation to British merchants exclusively as there is little doubt that the placing of their interests in the hands of Germans in the past has contributed very largely to enemy influence in the Colony. On their part, British merchants in the Straits should adopt a more expansive policy, should study the peculiarities of the many subsidiary markets for which they cater, and should not decline business because it involves troublesome detail work. Inasmuch as the prosperity of the Settlements depends upon their shipping and trade, it is essential that H.M. Government should take a much greater interest in these matters than it has done in the past, in order to facilitate the commercial activities of its subjects, both British and native, and, by foresight and the adoption of timely measures, to insure that Singapore retains its position as the premier port of the archipelago. "To quote the words of one of the greatest governors of the Colony, Sir Frank Swettenham, "Free trade and facilities for shipping are necessary for the expansion of the Colony, which is essentially a place of business, a market, a port of call, the Clapham Junction of the Eastern Seas."
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