CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 152

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whatever benefits may in theory accrue to Hong Kong

products under the Intermediate Tariff, in practice the

Canadian authorities have no intention of permit ting

Hong Kong ropes to find a market in Canada.

10. In his evidence before the Commission, Mr. Coulthart

stated that in 1930 the Company sent a shipment of rope

to Canada on the understanding that the goods would be

subject to the General Tariff rate of 25%. After payment

of the import duty, however, these goods were subjected

to a further dumping duty of 100%. In this instance

the dumping duty was eventually refunded after the Rope

Company had supplied the Commissioner of Customs at

Ottawa with full information regarding their cost and

selling prices etc., but the damage had been done and

since then the Company has not been able to negotiate

further business in Canada owing to the fear in the

minds of their buyers that similar arbitrary action may

be taken by the Canadian Customs in respect of future

shipments.

11.

The Canadian Trade Commissi ner in Hong Kong

was approached unofficially by the Commission for his

views in this matter. He informed the Commission that

the above incident originated in the fact that the con-

signment had entered Canada via U.S.A. He stated

further that Canada was anxious to increase trade with

Hong Kong and was sensible of the fact that she received

certain preferences in this Colony. While he was

unable to guarantee that the Canadian Government might

not alter their policy he said that he had been informed

that the imposition of dumping duties had been abandoned,

and he had no reason to believe that the Hong Kong Rope

Company would meet with any similar obstruction in the

future.