CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 140

Enclosure No.2.

SUPPLEMENTARY CONFIDENTIAL CHAPTER I.

THE CEMENT INDUSTRY IN HONG KONG.

164

1.

The case of the cement industry in Hong Kong

was brought before the Commission by a Memorandum from

the Green Island Cement Company, Limited, which was

subsequently amplified by evidence given by representa-

tives of this Company.

2.

Summarised briefly, the facts and arguments

put before the Commission are as follows

The cement industry in Hong Kong has fallen

on very evil days. The Green Island Cement Company,

which is the only manufacturer of cement in Hong Kong,

is being forced to work at a loss and at only one-third

of its full capacity and is faced with the imminent

prospect of liquidation and re-organisation unless

its position is relic ved by means of Government

assistance.

3.

The causes of this state of a ffairs are

stated to bc,

(a) Unrestricted dumping in Hong Kong of Japanese

cement;

(b)

Increase in Chinese tariffs in May, 1933, which

has virtually closed the South China market

to Hong Kong products, and has resulted in

an accumulation of stocks and consequent

cessation of product ion. In the case of

Kwangtung this has been followed by the

creation of a Government monopoly in cement.

In support of (a) the following figures were

quoted by the Company, the rate of exchange being taken

:

as Yen 1.00 HK$0.80.

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