CO129-558-11 Mission of Sir F. Leith-Ross to China- proposals for a Hong Kong - China customs... 29-9-1936 - 30-12-1936 — Page 89

C. O.

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Mr.

Mr.

Mr.

Sir C. Parkinson.

Sir G. Tomlinson.

Sir C. Bottomley.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

FURTHER ACTION.

"autarchic" world; and were of the opinion

that there was a pressing necessity for

".... a closer friendly economic contact

with China and/or closer economic contact

with the rest of the British Empire". These

two lines of approach need not necessarily

be incompatible; but in any case an arrange-

ment with China is of overwhelming importance

for Hong Kong.

The Commission ascribed the present

depression in Hong Kong to two main causes:-

(1) the general economic depression.

and the widespread growth of economic

nationalism resulting in the use of tariff

barriers and a diminution both in imports

into and exports from China.

(2) the systematic encouragement of

the production of manufactured goods as well

as raw materials in China, in competition

with an increasing proportion of the staple

foreign commodities hitherto marketed in

China.

of