CO129-554-5 Commission of Enquiry into the Hong Kong trade depression- correspondence and report 27-3-1935 - 11-8-1935 — Page 78

N. CONFIDENTIAL.

Sir,

Y

GOVERNMENT HOUSE,

HONG KONG,

14th May, 1935.

90

4

(7) in

34

33829

Enclo No.1

Round 5.

With reference to your despatch No.393 of

24th October, 1934, on the subject of the Economic

Commission, I have the honour to enclose a copy of the

Commission's Report which was laid as a Sessional Paper

before the Legislative Council on 18th April.

The Report

as laid differs from the Report as originally submitted in

the omission of three items. With the advice of my

Executive Council and the consent of the Commission, a sub

paragraph was omitted from paragraph 9 of Chapter VIII

"Property". It read :-

(a) "Lack of confidence in the future of the Colony.

In consequence of the growth of economic nationalism

in China and the political unrest of the last few years

in this portion of the globe, there has been a change

of heart in the Chinese as regards the commercial

future of this Colony. Whereas the history of this Colony is marked by numerous depressions and slumps, during previous depressions there have always been

far-seeing investors who were ready to take advantage

of cheap prices to buy property. At the present time

property is in most cases unsaleable because of the

complete absence of such investors. We have been told

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.

&c.,

&C.,

&c.