CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 49

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purpose of assiting them in their legitimate business, and not for the purpose of enabling them to repay lons. To assist trade means inreality to assist everyone in the Colony

in a direct or indirect way. in any Government loan, a condition

could be imposed requiring that, everything being equal, prefer-

ence should be given to British goods. The Japanese Government

subsidises merchants and shipowners on an enormous scale. The speaker knows that in the case of one shipping company alone,

several million yen a year was paid by the Japanese Government

as a subsidy. Perhaps the Hong Kong Government could, as a

preliminary, apply the interest received from the trade loan to

assisting deserving merchants. This would be a small but good beginning. For instance, the interest might be utilised for subsidising the British steamers which have suffered losses. during recent months as a result of the political boycott. When one of the Chinese members present points out that the interest might be required for covering any bad debts, when the Trade Loan is closed, Ir. Liang answers that the duty of the Govern- ment is unlike that of a man in charge of a private business. A Government should not be too calculating, as if every item of expenditure - no matter how far-reaching its results may be → must first be worked out on the abacus. It should take large views, and should so model its policies as a to confer the greatest benefits to the community as a whole.

sd. R.H. Kotewall.

18th August,

1927

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