1934-07-25 — Page 7

HONG KONG DAILY PRESS,

What Is Happening To Hong

Kong's Trade

Brilliant Address To Rotarians

By Professor Robertson

Professor R. Robertson, M.A. of the Hongkong University gave an interesting talk at the Rotary Club yesterday on "Local Economics: Some Aspecta" The subject is one very much before the public at the moment and Professor Robertson's referenNE to local trade is as illuminating as it is interesting. The speech was closely followed by those who were privileged to hear it and we give the context of it fa full below for the beneft of those who are closely in touch with this subject and would like to know the speaker's viowa.

Mr. M. K. Lo presided over the meeting.

Britain Buying More From Us

Professor Robertson said:---When one sets out to examine the economic ufe of "a

place like Hongkong, one is at once, met by certain interesting and distinctive features nos found or not so em- phatically found, in the economic units which are the usual subjects of study. When use the term 'local economics," I mean by econ aniles the study of man in the act of making a livelihood for himself, Now probably the greater part of , mankind earn their livelihood by taking it directly from the land in some form of agriculture. Others, also farmers, subsist rather by seil- ing their produce. Some, zgalnı, are engaged in producing raw ma- terials, minerals and other natur- al resources. Still others make a living by working up such pro- ducts in manufactures. Normally, when we examine any particular economic unit, we find it spec- ialises in one or other of these activities, or in some combination of them, by which its economic place in the world is assessed. For such a unit, trading means selling things abroad which have been made or worked up at home, and buying from abroad things which will be

tween China and the outer world with Hongkong as an intermediary. Secondly there is the considerablë movement of goods through Hong kong, from one part of China to another, such trade that is as would be

recorded more scienti-

Dically as part of the inter-port commerce of China. Thirdly, there is a certain amount of move- ment through Hongkong from one part of the outer world to an- other,

compare

what goods come from non-Chinese

WEDNESDAY, JULY 25, 1934.

ROTARY IN H. E. INSPECTS HONG KONG

sources The majority of course Mr. M. K. Lo Answers

DX.

the our

Critics

FIRST SPEECH AS NEW

-PRESIDENT

R. N. V. R.

Display on Board H.M.S. Cornflower

SMART TURNOUT OF OFFICERS AND MEN

come from the former scurce, but it would be interesting to get a more accurate estimata, especial- ly.of any changes that may be and other parts of China, and taking place in the proportions.. sul more Important destination of our exports, local manufactures." Entangled as they are with the gures of Taking the Chair for the first -"His Excellency the Governor Sir through trade, the statistics avall-time as President of the Hongtong William Peel, yesterday inspected able can only give a general idea Rotary Club, Mr. M. E. Lo yester the Hongkong Royal Naval Volun- of the direction of this movement day paid a warm tributë", to the teer Reserves on board HMS. of Hong Kong goods to South

work done by past holders of that Cornflower. He was accompanied China and abroad, especially to office and "took the opportunity of 1 by Capt.-R. F. Walters, RA, and Empire destinations abroad.

thanking the members for having | was met upon arrival by, Commo- Cement, sugar, hostery, singlets, elected him President.

dore F. Elliott, Pay Commander F. rattari ware, umbrellas: matting. "As to-day is the first occasion R Porter, Commander Hussey, trunks and bags, electrle torches on which I have the privilege to

Lt.-Commander F. H. Skye and and batteries, and so on, are Items preside, as President of the Hong Lt. Commander H. S. Rouse, com- that come to mind in this connec | Kong, Rotary Club” said Mr. Lo, manding the Reserves. tion. They are, taken as a whole. "I desire to express to you all my a small item in our total business, appreciation of the

honour you but it would be cause for satisfac-have done me in electing me Pre- tion they could be encouraged and developed. In this matter. the question of markets is of the greatest significance.

Boots and Shoes

After inspecting the Reserves, His Excellency want on the bridge deck where he saw "Away sea boat, sident, and my sincere thanks to Crew." The men showed signs of you for having done me this hon-good training and carried out ohr. (applause).

ther work with great eficiency. "Everybody Aft" was then piped and the force again mustered an the poop, where His Excellency handed Lt. J. R. Bergne Coupland his commission...

"It is no more conventional lang uage when I say that I comence my labour with much dimidence and trepidation for I realise what a well-nigh impossible task it is to follow in the footsteps of my

Addressing the men, His Excel predecessors--the

nell, one of brilliant and genial Rotarian Hor-

lency said: "It is a great pleasure to me to day to visit your training the Colony's elder pa real ship--and to see a statemen, Rotarian Tso and the small part of your exercises. The popular, energetic and energising Hongkong Naval Volunteer Reserve Rotarian “T. B.” -

thay be described as the child, or foster-child of Carnmodore Elliott

A glance at some relevent Items might be permitted. If we ex- amine, for example, the item Boots and Shoes not otherwise enumerat-distinguished shoes, we see that we have a large ed, which includes rubber soled

export balance. In 1932 we im. ported about 660,000 dollars worth. and exported 2,350,000 "dollars; "in 1933 our Imports were under 450,000 dollars, exports 1,776,000

dollars.

But I take consolation in the fact that our capable Vice-Presid-

take further, consolation in the reflection that it is realised and appreciated by all Rotarians that the Directors are merely your ser- vants to carry out your wishes, and" it. is therefore up to you to tell us from time to time what you

In the first five months|ent and the equally capable Board of 1934 we took 275.000 dollars and of Directors will keep me in the exported 1,250,000 dollars worth. right path and I need not say that Our chief importer was Malaya, I do most whole-heartedly rely on but is now Japan. Our exports their advice and guidance. went in 1932 to China, the Phili pines, Malaya, Siam chiedy. In 1933 our exports to all these, but especially to China, were heavily down, but this was counterbalanced by a large export to the United Kingdom, and a greatly increased sale to the British West Indies. In the first ve months of this year. the same movements re seen: Japan has already exceeded ber 1933 import; exports to China are still farther down; the Phill-

want done. We shall do our ut- most to justify your confidence add.carry out your wishes. We cannot and will not do less but we cannot do more.

I belleve it has been said against us as Rotarians that we do nothing

and I am glad to see it has grown into a lusty child”·

||

His Excellency said that we all hoped that the Colony would never be attacked, but it was, the Navy would cover a large part of its defence and there was no doubt the R.N.V.R. would form an im-

of portant part

defence scheme. He thanked the men for

come forward having

to offer their services.

the

"

His Excellency then proceeded to the Officers' cabin where he drank the health of the Force and wrote his name in the visitor's book.

Among the R.N.V.R. officers. present were Lt. Commander K. S. Rouse. Lieut. T. P. K. Kembie, Lieut, J. Petrie, DS.O. Lt. R. Stock..

In the trade statistics, of course, these cannot be separated off from each other. A careful examination of the figures may assist towards a general idea of how our through trade is divided up among these three categories.. but anything ap- proaching accuracy is impossible. Yet it would be of the utmost practical as well as scientific value to gauge the relative importance of the three movements. We know, of course. that the third is the least important, but how do the arst two

with each other? We are aware of large quantities of foodstuffs which be- long to the first category, among which rice from Siam and French Indo China plays a predominant | pines have disappeared as buyers. consumed or otherwise part with flour and many other

and Slam and other eastern lands but eat together once a week. This dealt with at home. The trade re-foodstuffs following. Petrol kero- are down; while the United King-criticism, is of course not true. We Pay Sub-Lt. E. Grossman Sub" turns of such a country, thoughsene and other oil from the Dutch dom had already almost doubled have tube sized moun per-Leur (E) J.R. Bergne Coupland including perhaps a little enterpot East Indies, sulphate of ammonia her purchases and the British West | haps we might have done more...in trade, indicate most definitely the from the United Kingdom, Ger- Indies and other parts of the Em-community service. But even if country's real imports and real many etc., metals, machinery and pire were more or less steady. Im the criticism were trãe it seems to

use the New Territories to breed exports.

and textiles all form part of this ports from Malaya are down al- ́ me that we shall be proud of the movement. But it is equally true most to vanishing point.

fact that People of diferent na-

pigs, and perhaps grow malze with that much of what we sell to Taking singlets; we import a │tionalities, creeds and outlook to feed them in part, and pro- duce thus a better pig or a cheaper South China comes from other small quantity of these, chiefly should deliberately, decide to meet parts of China.. Take for example from Macao, though Japan is com- and lunch together once a week one, then no sound principle 3 the textile figures; one very large ing up.. Our export in 1932 was in the friendly atmosphere of Ratiolated, although I would not use item consists of the lower counts 5,699,000 dollars, of which Malaysary for to my mind there is no bet the balance of trade as a par. of cotton yarn, of which in 1933 took about one third, China some- ter way of promoting friendship amount reason." over 45,000,000 lbs. came from what less, with the Philippines, and understadding."-T-therfore say In North "China, which practically | Stam and Netherlands East Indies that such a criticism so far from monopolises this trade. Some of as our next best customers. In condemning Rotary constitutes its this no doubt goes to French Indo

1933 our exports were down by two diftification (applause). China and Slam, but a very large million dollars; Malays took most, quantity goes to South China. The purchasing 1,330,000 dollars worth; same is true in less degree of some but our other purchasers fell back other textile items. I might men considerably, especially China. In the five months ending May 1984. exports continued to show a down ward tendency, especially to South China, but Malaya's purchases were well maintained.

Trade Returns The trade returns of Hongkong indicate no such thing. for the most part, and, from the economic point of view, have sometimes tended to obscure rather than to clarify the movement of world trade. Take for example the Chinese Trade. Returns in which. Hongkong until a year or two ago occupied a leading place both in the import and the export" figures, While this was so, it was impossi- ble to gain from the figures there recorded satisfactory information

as an interesting item because of the great increase in the quantity coming here from North China In 1933 only 300,000 dollars worth is recorded as arriving, while in the first four months of, this year the million mark was reached.

as to China's real trade with for- tion artificial silk or rayon yazı eign countries; the total trade was there, no doubt, but a considerable part of it, namely the Hongkong part, was incapable of being class lied as to origin and destination. To some extent this has been re- 'medied, especially with regard to trade moving from Hongkong to Chins, by the fact that China now demands countries of origin and destination to be stated. The import Agures from Hongkong thus dropped greatly from 1932 in the Chinese trade statistics, though

perfection in this matter cannot of course, be expected. Exports to Hongkong have not shown such a drop in the Chinese trade. Agures, as might be expected since is will often be impossible to say that the ultimate destination will turn out to be.

The admirable series of figures now emanating monthly from the Hongkong Imports and Exports Office do something to help, siace they give some general idea of where e.g., goods coming from China ultimately go: but it is still impossible to follow any consign-. ment of goods from its origin, say, in China to its Anal resting place

Hongkong Unique

4

In passing I may mention one matter relating to the statistics which involves some difficulties of comparison. The Chinese Trade figures since the middle of 1932 have not included the Manchurian ports... The Hongkong 1gures still include these under China;

North

The relative dimensions of these two branches of our trade, then, in one of which we are an inter- mediary between China and the outer world, in the other an in- termediary between different parts- of China, are matters of interest and practical Importance for us. Has one been guining at the ex- pense of the other? And if so, has this not an important bear- ing upon our economic welfare; and the means of maintaining it?

Hong Kong Goods

In addition to the through trade. there is a certain amount of com› merce which concerns Hong Kong But it is of Hongkong itself, ra- moté particularly as an indepen ther than China, that I wish to dent economic unit. We bring in speak. Hongkong's trade returns from outside certain "commodities are not comparable with the re- for our own consumption, and also tums of other units, since the bulk some which we work up locally represents through trade. Now in At the same time we export some any assessment of our economic goods of Hong Kong origin, chiefly position we should be able to elicit local manufactures. Here agalo It and distinguish certain portions of is of practical interest to distin- business. What are these gulsh China from the rest of the portions if they are to be selected world, and obtain, if possible, with a view to having a satisfac- some idea of relative proportions, tory basis for future policy? a task which is not easy and which have said that the bulk of our I am not attempting to-day. In trade is a through trade but this other words, it would be useful bulk is itself capable of subdivi- to know what goods of local con- sion. There is first the trade be- sumption come from South China

our

|

Electric Torches

As to Electric Torches, while we China, this is mainly an export import from Lacco and South

trade, in which we sell over 1,000,000 dollars worth yearly. We cell a considerable amount to the Netherlands East Indies, but here Empire countries purchasers taken

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YD.

$1.50 $1.00

50 SUNDOUR CASEMENT.

CRETONNE COVERED

CUSHIONS...

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CARD TABLES $8.50 CAMP BEDS $15.9

YD.

EA.

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LANE, CRAWFORD, LTD.

assessing Hong Kong's economic activity during any period, it seems to me, then, thatK

we should be able to watch more closely than available” information allows us the trends in the differ-

ent categories I have attempted to outline. Their relatioris and in- teractions are of real importance to us, and if we could keep a finger

on the pulse of each of these trade

exported commodities which are manufactured here (I include the shipyards of course in the term shipping services); and on the other side the goods we take for our 'owa consumption or for movements separatively, we should working up into other goods.

be in a better position to Judge Looking at the matter in this way of advantage and disadvantage. I we get a better idea of Hong have said enough to suggest that Kong's economic role. The more through trade there is, the larger is the credit side of the balance. Other credit items will be main- can carry on our

tained if we ship-building and repair services to competitive advantage, and if we can find and keep markets for 鼈 whole, our own goods without losing any

Bre Our best

specially India and Malaya, whose or too many particular advantages purchases are well up his year.

we may now possess. I have not the United Kingdom which had

heen technical on this matter of already in May exceeded ber 1933

mur balance of payments, and have purchase, and South Africa.

therefore omitted such items as remittances, capitai movement (e.g. to Cantori), etc., which are Important, but which I cannot now difate, upon.

Pigs and Poultry

I have already suggested that there is nothing in Hong Kong's economic position which would make economically unsound any further development of her own

this act of judgment we may sometimes find ourselves on the horns of a dilemma; but a clearly seen dilemma is better than one that is only vaguely felt.

i

Rotary's Part

I should have liked to speak of

other aspects. There is, for ex-

ample, the fact of having a silver

currency: the exects of this, which We share with Chins, sometimes good, sometimes bad, but always uncertain, are a long story. It is sufficient to say that, to an extent

other currency : can, boast, China's money and ours, in for- eign valuation, is subject to cut- gide movements and pressures --largely outside China's control and our own. The speculative element. indeed enters Into our económic te in greater proportion than elsewhere, and this is not true only of exchange. The extent of this

I do not want to weary you with gures, but have mentioned these as examples of the complexity of the problem of Hong Kong's economic place in the world where her particular lines of goods are concerned. The Ottawa arrange- ments, of course, have not left Hong Kong un-affected and this will be found reflected in the statistics, including some of those I have mentioned. At the same particular industries. A distribut- speculative aide of our economics time, there is an undoubted con- | ing port, as Shabighat shows, need might form an interesting" study, fict of interest, which is why I not confine itself to distributing as well as affording some idea of have stressed the importance of trade, and no economic principle the effect produced on our busi- ascertaining relative proportions. has ever stood in the way of a ness as a whole, as compared with The upshot of these few re- community developing' any indus-speculation in other places. Trað- marks is that we should not read try which will pay. And I would ing methods, whether credit trad the trade returns of Hong Kong tend this to Industries capable ing is apt to get top-heavy, whe- as we read other trade statistics of economically providing for Hong ther greater co-operation to avold Economically linked as we are with Kong's own wants, as well as in- excessive supplies, these and many China, a great part of the Agures dustries for other market. It is other topics occur to one. But T really belong to China, and must not of course unnatural that Eong must leave them to others. I be read as such. They are of use Kong should consume pigs and hope I have not been too diffuse in estimating China's balance or poultry from South China, being as it is. May we not hope that trade rather than Hong Kong's economically linked with that area. this Club may in the not too dis- Dur own balance is to be got by especially in view of the fact that tant future play a useful part, placing on the one side the value Hong Kong sella-much more to hich its members are well quali- of the distributing and shipping South, China than we buy from fled to play, in throwing more light and banking and insurance ser” - that region, (I am speaking of the upon some of the matters that f vices we perform, together with the entreport trade). But If we could have touched upon?

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