CO129-549-14 Commission of Enquiry into trade of Colony 17-7-1934 - 18-1-1935 — Page 58

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natural resources and an intensive population to cater for.

position of Hongkong is vastly different and is more comparabls

with one of the old Greek City States or one of the Hansa ports of

Germany.

On what, when all said and done, is based the fundamental

prosperity of Hongkong? Surley on its deep water port and the

industries arising by reason thereof. By the industries arising by

reason thereof I mean the banking systems (in which I include

Hongkong as a financial centre), insurance systems, godown systems

and the shipbuilding systems. Now, is a high protective tariff

of advantage to these or is the present free port system more

beneficial?

Hongkong is not a producer of any primary commodities

such as iron, tin, coal, copper, silver, cotton, wool, silk, tea,

rubber, oil, etc. If she were, then it would be an advantage to

adopt a highly protective system, whereby industries can be built

up for the purpose of using her primary commodities to advantage.

What is Hongkong's advantage? Surely in being a dis-

tributing centre for the whole of South China. Ships of great

depthoome here because they cannot go elsewhere; it is an

advantage to the distributor to be able to keep his goods out of

bond, break bulk, and wait for a favourable market in the interior;

it is essential that the port charges, the expenses of handling

cargo, and the general taxation to be paid, should be of the

minimum and it is most desirable that wages should be low and

the cost of living as economioal as possible.

Under what conditions

would such circumstances be more likely to exist, under our free

port principles or with high protective tariffs? I cannot help

thinking that the answer is "Our present free port system"

If you have a high protective tariff on a number of

articles, it would call for a large staff of officials, bonded

godowns, together with a very complicated system of drawbacks.

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