CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 298

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Enclosure

4.

EXPORT RESTRICTIONS.

Memorandum on the Secretary of State's

telegraphic instructions of the 7th. Jan: 1919.

282

In discussing any measures affecting the trade of

Hongkong it cannot be too strongly emphasized that this trade

is purely one of distribution. The Colony produces nothing,

animal, vegetable or mineral of any account in the World's

trade. Its consumption, except in case of materials for

shipbuilding, ship-repairing and ship-furnishing is from the

same relative point of view, equally negligible. It is true

that the Colony absorba large quantities of certain raw or

semi-raw materiala notably tin, sugar and tobacco and refines

or manufactures them. But the output of the refineries and

factories is destined almost wholly for markets outside the

Colony and any restraint upon the exportation of their pro-

-ducts may inflict a vital injury on these industries,

In fact, export restrictions in Hongkong are essentially an

interference with gooda coming from and destined to other

parts of the World and making use of the Colony merely a8 &

convenient clearing house. A clearing house which obstructa

clearance will soon lose customers. The advantages of her

geographical position, her good harborage, and long-establish-

-ed shipping connexions will doubtless protect Hongkong from

desertion on account of any minor inconveniences. But the

World's free tonnage will be steadily and perhaps rapidly

increasing. At the same time the sense of an overruling

which common purpose/during the War has led Allied merchants

in Hongkong to acquiesce in unwelcome restraints upon their

trade, will be steadily fading, while the spirit of competi-

- tion will be growing daily livelier. Merchants will there-

-fore find divesions of trade both practicable and justifi-

-able in an increasing degree and inasmuchas each diversion

defead ts pro tanto the object of the restriction, the loss

to

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