CO129-528-1 Trade statistic returns- extent of trade passing through Hong Kong 29-12-1930 - 13-1-1931 — Page 27

the existing conditions, a double exchange between

gold and silver i is involved in respect of the trade

two non-Chinese countries, which is at

chinari

between

least as important as the interchange trade. As

regards the trade between China and the rest of the

world, which apparently forms the greater part of

the transit trade, an exchange between gold and

silver is involved any way and it does not seem to

matter whether Hong Kong is on a silver or a gold

basis for this purpose. The fence has got to be

climbed somewhere and it is immaterial whether it

is climbed this side of Hong Kong or the other.

The general conclusion is that from the point of

view of facilitating trade, it would be to Hong

Kong's advantage rather than disadvantage to change

over to a gold standard.

I am perfectly aware that the above figures,

based on one month's trade only, and on which I have

assumed that the whole of Hong Kong's trade is

transit trade, are nothing like exact, but I think

the general conclusion is reliable, as the general

direction of trade in the most important single

items, e.g., sugar, rice ana cotton piecegoods, is

not likely to vary from month to month, and is

quite obvious from a short examination of the

detailed returns. I would suggest, however, that

it would be very valuable if a more thorough

examination of the direction of trade were made

when

27