CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 59

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

Zinc ore Wolfram ore

Arms and ammunition

Arsenic

Bran

་ ་ ་ ་

Candles

Bristles

Rice

China root

Cigarettes

Egg products

Hemp

Flour

Fruits, dried and fresh

Fungus

Intestines

Nutgalls

Wood poles

Unenumerated sundries

Total Exports

Net Total Value of Trade

9

1922.

1925.

0'3

0'1

0'6

0:3

0'6

0.6

2.4

1'4

0.5

6.3

10'1

1.6

1'8

0.8

0'8

1'4

1:0

5'9

31.8

7.9

109.9

155 1

206'0

288'8

30. A scrutiny of these figures shows that as usual cotton-piece goods form one of the most important items of import, while raw cotton forms one of the principal items of export. It is probable, however, that this cotton was proceeding to other ports in China. The export of tea is rather noticeably small, and is said to be a declining industry.

31.

Canton and the South.

The proportion of the value of this trade to the total trade with China is much smaller than that borne by the area dealt with above, viz., the Yangtse Valley. The problem, too, presents certain difficulties of its own. We must be careful not to be guided entirely by the considerations which weighed when considering in March, 1926, the blockade of Canton. That measure was at the time directed entirely against the town of Canton, which was then the headquarters of the Nationalists, and it was intended to be a sharp and sudden measure to bring them to their senses. From this point of view there was reason to think that it would be welcomed, to some extent, by the mercantile community of Hong Kong, who are practically at their gates, partly owing to the fact that they had been suffering severely from the stupidities of the Cantonese Government, and partly owing to a long-standing jealousy existing between the two towns. The most important change in the situation which has occurred has been the acquisition of a vastly greater amount of territory in China by the Cantonese Government. A blockade on a much larger scale and for a much longer period directed against the whole trade of South China would, of course, seriously embarrass Hong Kong. As many of its inhabitants are Chinese, and the greater part of its wealth is derived from those who are Chinese by race, it seems most doubtful whether any effective co-operation would be forthcoming from them.

32. In March 1926 we carried out a detailed investigation into the trade of Canton and our Report was circulated as C.I.D. Paper No. 681-B. We consider it unnecessary to reproduce the statistics put forward in this paper, since, though trade figures for 1925 are now available, they throw no further light on the situation. We would point out, however, that our conclusions were then arrived at under quite different, and indeed more favourable, circumstances than at present exist. Our main conclusion was as follows

A blockade of Canton, undertaken with prior international agreement, will be sufficiently effective to cause the Canton Government to give way if—

(a.) The latest rice crop has been a poor one.

(b.) In addition to the seaward approaches, the whole delta is patrolled and the West River blocked by a gunboat stationed between Wu-Chou and Canton.

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