CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 145

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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13.

It has already been stated that the Commission

were not entirely satisfied that Japanesc competition

could be described as cither uncconomic or unfair.

In these circumstances the next question which urgently

demanded consideration was whether the manufacture of

comont in this Colony was cconomically sound. Opinions

wore divided but some measure of agreement was reached

on the fact that the Groen Island Cement Company as at

prosent constituted was over capitalised, and that it

could not be said to be economically sound until such

time as it had reduced its capital.

14.

In the light of this agreement it was then

necessary to decide whether the Company had any special

claims to consideration which would outweigh the disad-

vantage of subsidising an unsound industry.

15.

First and foremost was the claim of the

Company's vital importance to the Colony in the event

of war. This was referred to the Naval and Military

authorities with somewhat surprising results.

The

Naval authorities replied definitely in the affirmative

XXXXXXXX, while the Military did not regard the Company

as of any importance in time of war but were of the

opinion that if the Company censed to exist the price

of Japanese coment would immediately rise to the level

of, or higher than, the present Green Tsland Cement

Company prices, XXXXX

16.

On this latter point there is no evidence

before the Commission and the question must remain a

matter of opinion and argument. It is, however,

interesting to note that a fenture of Japanese competition,

which was commented on by the Straits Settlements

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