1933-02-27 — Page 3

HONG KONG DAILY PRESS, MONDAY, FEBRUARY 27, 1933.

BANK CHAIRMAN'S CAUTIOUS REVIEW

CAUTIOUS REVIEW recovery, and with it, of course, a

(Continued from Page 2).

them against the old oppression and misery which were, more than any thing else, the real introducer of

1 China and Russia,

revival of the export tradle of China and India than to introduce international schemes, which might very easily do more harm than good,

Position in China,

the Chinese Press lately. China's. best interests are not served in this ~WBY,-

We have listened with great-in- terest to our Chairman's reference to trade in China, which is all im roads and the introduction of mo- Minister of Railways, is occupying the peasants and ensuro tors. Another innovation which himself with the problem of over

portant to us in this Colony. The bids fair to transform many re due debts and has, as a practical

situation has been fully dealt with gions of China consists of long- measure, arranged for the setting

by him, and there is little left for distance air routes. An aeroplane aside of moderate sums-monthly communism. The land resettlement me to say on the subject, beyond service is now running from Shang- for loan service on the Tientsin- in ex-soviot districts, where titles expressing a hope that there may hai and Nanking to Chungking on Pukow Railway, a line which, for have been destroyed and landmarks yet be found a solution to the un- the upper Tangtre (shortening the the last seven or eight years past, obliterated, is the most immediato, fortunato trouble in the North, journey from ten days or a fort bad produced not a single dollar and perhaps the most difficult, part mutually satisfactory to China and

The handling of Japan. night to a matter of 30 hours); an- for the payment of its bondholders. of the business, ather connects Shanghai with Tian-Though the amount of the monthly these reconstruction problems will Great Britain's only desire is to tein, and Poking and a third route, payments which are thus being be a vital test of China's capacity help to settle the dispute by peace- of nearly a couple of thousand earmarked at present is not enough to set her house in order and miles, traverses half of China from to balance the growth of the debt, will be watched, I am sure, by all ful methods and it is a great pity that BO many misrepresentations the sea coast to Laachow in the Mr. Ku's action is a move in the of us with the most anxious sym-have been spread by propaganda in province of Kansu, whence it will right direction and we welcome.it pathy. in due course extend as far again as proof-of His Excellency con- to the westward to the remote city cern for the restoration of credit of Urumchi in Chinese Turkestan. The need for this is great if Chi

A political event of the year

The Chairman referred to the in British machines still-I regret tonese credit is to be checked on the which, claims our final notice is the crease of motor roads, and svin- say-figure exceedingly small among downhill course, The proud re-recent restoration of diplomatic re on in China and it is hoped Bri-- the aircraft imported.

putation for honouring obligations Intions between China and Russia. tish manufacturers will wake up to which China used to possess has Its full import yet remains to be the importance of this field to the suffered sadly by her Government's seen. Speaking from a commercial motor industry before it is too late. Chinese Government finance re-record during recent years, especial view point, I will merely mention, It offers immense opportunities to mains somewhat of a closed book to ly in regard to the railways. in passing, that the new agreement the progressive manufacturers at the outside observer, but the pub-Linse deeply in debt to bondholders comes at a time when the invasion home: lication last December of Mr. T. and private merchant creditors of the China ahrkets by merchan- With the increase in fresh manu V. Soong's third annual statement have had their revenue appro-dise from Russia at undercutting facturing industries in China, com- provided sufficient data to show printed by order of the very Gov prices a matter to which my pre-peting with articles formerly in- that the exchequer has borne up ernment which replied to the lawful decessor of two years ago made ported from Great Britain, and in moderately well against unfavour claims that money was lacking to special allusion-has been making creased competition from Japan able conditions at home and abroad. pay them. In this way many mil conspicuous progress. Russian oil, and Russin in the near future, it A sarious crisis just over a year lions of dollars have been diverted timber and piece goods are the pro- behoves our manufacturers to seiza ngo was surmounted by means of from the long-suffering bondholders ducts particular, concerned and on any new opening that may pre- an alteration of the interest rates of the Tientsin Pakow Railway (the these are now in serious competition sent itself. and redemption terms of the do-bonds sinking in consequence to 4 with imports from other countries.

(Continued on Page 4.) mestib loans, effecting a paving to bare fifth of their value) while oven the exchequer of some $100 million in the last few months sums amount- pér aanum; a rider attached that no more internal loans should being to four or five millions were abstracted from the receipts of the floated by the Government has Peking-Mukden line regardless of been faithfully observed. The pub the fact that this railway is far in Jished figures up to last June show arrears with its obligations on the an increase in total revenue duo Fengching Redentption and Can almost entirely to the steadily ton Kowloon Jonny, besides its growing yield of the Consolidated debts to individual foreign creditors.

China's Finances.

Taxes, which as a major source of While I hold it a duty not to gloss revenue are now beginning to rank over these facts, we should not be with the Customs and Salt Gabelle. A drop of 45 million taels-in blind to the efforts made to main- the Customs receipts, though part-tain the status of other classes of ly due to the cutting off of Man-loan secured on the Customs and churia, is creating doubts as to the Salt, China's foreign creditors as revenue-producing effects of the a whole, while naturally impatient raising of the tariff. A serious at the delay in the promised taking quel to the increased duties has in hand of the question of the overdue dehta, will give China her been a phenomenal increase in due for remaining among the na smuggling. The situation causes tions which have resisted any concern, but we implerstand that preventativa mensures are being temptation to enter on fresh de- energetically taken in hand by the faulls on the plea of the general Chief Inspectorate, in connection economic collapse. with which, I am very pleased to record that Sir. Frederick Maze, whose wise and capable direction of

Manchurian Oondlet,

Before closing my specch, I wish! to mention the fact that the end of March this year will see the retire ment of Sir Charles Addis from the position of Chairman of our London Committee, a post which he has It would be held since 1919... superfluous for me to enlarge on Sir Charles' distinguished record of public service following alter the important work which he performed

connection with international when Manager of our London Office

with the organisation of the Con- loans to China and, at a later date, sortium of banking groups. He will retain, I am glad to say, a link with the Bank in his continued capacity as the representative of the British Group of which we form part.

in

Another recent retirement which

I cannot pass by without & word of reference is that of Mr. H. D. C. Jones, a veteran who lately com- pleted his fiftieth year with the Bank. Mr. Jones, as you doubtless know, was for over twenty years one of our Joint: Manager's to Lou- position after Sir Newton Stabb's death in 1031. We wish him many years of well-curned retirement.

So much limelight has been direct the Customs administration during ed on Far Eastern polities during the past few years has benefitted the past year that I can sufel don where he took over the senior both China and the foreign trading spare myself the effort to review nations, received during the year a the state of affairs in any great de- mark of recognition in the form tail. The Manchurian conflict has, of a British Empire Knighthood. of

dominant been the course, The Salt Gabelle figures are not featury and about it I need only say available to the public, but it is that the disastrous state of uncer- to be assumed that the loss of re tainty which it has brought in its mittances from Manchuria will train has been a very serious factor have reduced the total receipts, in the trade depression in this part The "quota" remittances for the of the world, which makes foreign loans have, I believe, re-doubly anxious for the first appear- mained fairly constant.

ance, of a move towards a settle

Chinese Politics,

Twelve months ago my predeces- son referred to 1931 as one of the most difficult in the history of the Bank, I bave said that 1032 has been even worse.

118 I want, therefore, to say on be- balf of the Directors how much we appreciate the most excellent work done by our Chief Manager, the Branch Managers and all the staff of the Bank. Mr. Grayburn bas had many burdens on his shoulders, that they are well fitted for the task is very patent to all of us.

Railway revenues, on the other ment. hand, have generally improved al-] . · though the Nanking-Shanghai sys- tem forms a regretable exception owing to losses inflicted on the lins by the February Shanghai troubles, the last twelve months brought no

From the improvement in railway earnings no immediate relief has,

In China's purely domestic affairs

I now beg to propose the adop- important changes. Such ware aa took place were, happily, localised tion of the Report and Statement I am sorry to say, accrued to un- and relations generally between of Accounts, and after this has been paid foreign creditors. It is, how- Nanking and the provinces have not seconded I shall be pleased to ans- wer to the best of my ability any materially altered. If the your has learn ever, encouraging to

left nay lesson it is, I would ven- questions which shareholders may Mr. Ku Meng Yu, the present ture to say, the old lesson of pati- have to ask.

ence. China's advance along the road of political reintegration must

that

KING'S THEATRE COMMENCING" WED. 1ST MARCH.

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Mr.

SECONDER'S SPEECH

inevitably be slow and it is useless for us to expect too rapid a rate of progress. Even the form which the

H. R..B. Hancock, in final solution of the national pro- blem will take is still far from cer- seconding the Motion said :— tain and in this transitional period Ladies and Gentlemen, It is we may rest content with seeing with much pleasure that I rise to another year go by without any fur- second the adoption of the Report ther return of widespread civil war and Statement of Accounts which

we have before us.

fare.

The Chairman has given us such The Communist Menace,

a lucid explanation of the affairs Another hopeful feature is the of the Bank, and has covered the start which the Government has ground of its working in various made in dealing with the bandit parts of the world so fully, that I communist movement. Readers of approach my task with soine diff tha Lytton Report will have noted dence. the serious terms in which it speaks

of this movement, referring to it as

Firstly, however, I should like to congratulate the Directors, and an actual rival to the Chinese the Management on the excellent Government." Maps depicting the situation at the beginning of last result of the past year's working. year showed vast rod areas in the The figures which we have bofore central Yangtze regions, signifying us are indeed most satisfactory. Soviet rule and complete closure to To have shown an increase in net traffle with the surrounding dis profits of over 84 lacs, and to have tricts During the summer General maintained the same dividend as Chiang Kai Shek conducted a milf last year, at a time when most tary drive resulting in the clearance similar institutions have shown de of the areas in question, the red creased profits and reduced divi- armies retreating to the remote redends, is a tribute to all concern-

ed. gions of the West... A drive against

the other great communist strong- I am pleased to see that the hold in central and southern Kiang- transfer to Bank Premises Account, mis said to be now preparing, namely 81,500,000.00 has been in. Though Hankow has been alived creased by 8500,000.00 this year, and, relief brought to the whole of and reverts to the 1931 figure. central Ching, the task is far from When so much new building is accomplished. Apart from the fast either going on or in contempla. that the defeated red forces still tion, it is of importance, I think,. remain in oxistence, the whole pro to keep this transfer as high an. blom of combatting communism is possible.

na General Chiang has publicly

said, essentially economic. When

I am sure we are all in accord

the house has been swept and with the Chairman's remarks about garnished it must not be left empty.

In other words the vacuum vacated the restoration of silver. Artificial by the destruction of the communist measures of control have been tried régime must be filled by the build Take a repetere

other commodities with fai ing up of new local governments: Availab

Ture in almost every cake. It wors to improve conditions of life for better to wait for economic world

Methods and men must be ruch ne

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