CO129-622-7 Department of Commerce and Industry- reorganisation and Annual Report 4-4-1949 - 20-2-1950 — Page 45

ORANDUM ON THE PROPOSED REORGANISATION "OTHE IMPORTS AND EXPORTS DEPARTS ENT-

OF

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1.

INTRODUCTION

Tho

In the early years of the 20th century, the main function of the Superintendent of Imports and Exports was the protection of the Opium Monopoly, which was then a major source of Government revenue. opium monopoly was, in those days, fawned cat and tho farmor was given the full protossica of the Government to safeguard his monopoly. Towards the end of tho first decade of this contury decided to run the opium monopoly directly and the task was riven to

the Government the Superintendent of Imports and Exports who retained this function until 1945 whon tho opium monopoly, which had boon decreasing in importance as a source of Government rovonue, was formally abolished.

The Government, moanwhile, had sought to augmont its incomo by tapping other sources of revenue and in 1909, to the criticism of many who doubted the wisdom of tho measure, it introduced the practice of levying taxes on liquor and tobacco. Those taxes were increased in the early thirties and again after the outbreak of war in 1939. In addition a duty was levied on hydrocarbon oils in 1988, on proprietary medicinos and tollet preparations in 1941, and on aorated waters in 1941, functions of administering the Dutiable Commodities Ordinance, under The which these duties were raised devolved upon the Imports and Exports Department. The Posult was that from being a Department primarily concerned with raising revenue on opium, the Department became the chief revenue collecting Department in the Government, and in the fiscal year 1946-7 was responsible for some $36 million of Government

revenue.

At the same time other functions had been added to the Department. In 1925 at the behest of the Hong Kong Chamber of Commorce a system of compiling statistics of imports and exports was introduced and the Imports and Experts Department was given the task of collecting and publishing such statisti4s.

The Imports and Exports Ordinance passed in 1915 aimed at the control of a fow comodities, such as arms and ammunition, and the Department was mado responsible for the administration of this Ordinance.

To 1939, however, the chief functions of tho Department were the protection of the opium monopoly and the collection of duties on dutiable commodities.

II.

THE WAR AND ITS AFTERMATH.

With the outbreak or the war in 1939, the Dopartment was called upon to undertake the control of trade which the war made necessary, and the Superintendent of Imports and Exports became the controller of trado. This function coerced with the outbreak of hostilities and the occupation of the Colony by the Japanese.

When the Colony was relieved, it was essential that there should" be set up some Government organisation which could handle the procure- ment of supplies the atribution of the same to consumers and the rehabilitation of industry. The British Military Administration brought with it a Department of Supplies, Trade and Industry, which has been responsible for the procurement, control and distribution of commodities in short supply, or those operated under world allocation and on a Government to Government basis, Thus a Government Department ontered the commercial field and carried on transactions on the same lines as an ordinary commercial firm, The Department of Supplies, Trade and Industry was a temporary Department which was intended operate until such time as crdinary commercial firms wero fully organi sed and the movement of commoditics could be undertaken on a peace time basis once aguin.

Neverthe loss, the Department did maintain a very close day to day contact with commercial firms and in the course of its operations