CO129-623-2 Rubber Industry- report and correspondence on the labour situation 1-12-1950 - 31-3-1951 — Page 5

The latest information we have had for H.K. is on 53508/1/1Q1 helms & park 2 of HK til 1272 shows that the number of persons employed in the rubler industry fall from 5,900 in the first quarter to 3,200 in the third quarter. of the facts in that

tel an accurate it wild appear that the H.K. traders

unlikely to be able to compete successfully in the U.K. markets unless (a) the price of subler comes down or

(b) He V.K. menfacteurs increase their prices.

5

On the other part I agree with the Welles' minute of 20/12. I feel sace He H.K. traders have already explosed the peachbity of alternative markets.

I also fully report te wille's last park. The U.S.A. notual embargo a goods & materials to H.K. & Chimere retaliation in good matinaly to the U.S.A. is bound to have

~ H.K. industring & trade. Attempts to keys

senms effects

A

ގ

H.K. out of the U.K. machets cannot but have further depening effects

a H.K. morale a as the South China Morning Post of

11.12.50 states "H.Ks fate ing is to be mesanderstood &

mes represented. & prospinty

< painted as profligate

receiving only.

catively underening. In aduenity

just deserts. We are convicted unheard of all manner

of sharps practices.

#

There is another aspect about which I am not

very

char.

when dealing with the P.Q. I was informed that in the U.K.

rubber shoes it was

only a

econdary industry 1.8. He same

manufactures had other

interest

major

2.5.

He manufacture

of tyres. The some is not the case in H.K. where the loss of

machets will probably

cloring the whole factory.