CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 144

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defence schemes of the Colony and because without the Mom

Cement Company there would be a grave danger that Hong

Kong would find itself completely deprived of this

essential commodity. In this connection it was

pointed out that the Company made a practice of carrying

at least two years supply of limestone, so that there

was no danger of a shortage of raw materials.

(4) It was also pointed out that the Green Island

Cement Company already received a preference of

Straits $12.00 per ton in the Fedorated Malay States,

and that this proference enabled them to market their

product in that country even in the face of Japanese

competition.

11.

Finally it was frankly stated that the Company

was in a critical condition. Shares had dropped from

par value of $7.50 to $1.80, and unless some form of

assistance was forthcoming the re would be no alternative

to a re-organisation involving writing off of this

amount as capital lost. It was urged that this would

financial upset of grave importance to the Colony

and would tend to shake the faith of investors in Hong

Kong and Hong Kong securities generally.

be a

12.

(a)

(b)

Remedial measures suggested were as follows

Imposition by Hong Kong of a quota restriction on

cements imported from foreign countrics;

Imposition by Hong Kong of a tariff on all foreign

cement except cement imported solely for

purposes of re-export. It was urged that the

duty should be at least $12.00 per ton;

(c) Imposition of a dumping duty;

ê

(a)

Full support by the Government in making use of

the local product in all public works.