CO129-541-12 Application by Soviet Oil Company Union Petroleum Trust for permission to erect an oil tank... 14-11-1932 - 28-3-1933 — Page 43

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The petroleum trade in Hong Kong is of considerable

volume but is mainly an entrepot trade and the actual local

consumption, apart from the bunker trade, is not large.

It is presumed that the Russians have selected Hong Kong

as a base in order to obtain the security afforded by the

British Flag. If they are refused a site in Hong Kong they

may conceivably go to Canton, Foochow or Amoy, but in

those places they would not have the security afforded by

British territory. The Acting Governor states that refusal

of permission is not likely to be of any benefit to

Hong Kong. By this remark he presumably intends to infer

that if the Russians come in, the trade will expand owing

to petrol and kerosene being made available at cheaper

prices and the Hong Kong Government would secure a higher

revenue. On the other hand, it may be that there will be

no general expansion of trade and that the Russians will

make substantial inroads into the existing trade of the

Asiatic Petroleum Company which has been established there

for very many years. The attached statement of imports and

exports of petroleum products during 1931 shows the present

volume of business done. The duty on light oils coming

into Hong Kong is 25 cents per Imperial gallon, which is