1935-02-02 — Page 9

TRADE REVIEW SUPPLEMENT

Hongkong Daily Press.

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SATURDAY, FEBRUARY

*1935

Registered as a Newspaper at the General Post Office in the United Kingdom.

TRADE REVIEW OF 1934

COMPREHENSIVE SURVEY OF LOCAL BUSINESS SITUATION

The depression in South China and therefore in Hong Kong has been the most noticeable fac- for in trade during the past year. An unfavourable balance of trade in the South of China, na yot unrelieved by improved remittances from Chinese emigrants abroad has result in decreased pur- chasing power. The general situation has resulted in decreased revenue to the Province of Kwangtung a partial result of which has been efforts to increase taxation in that Province. It is, of course, most unfortunate that this sequence of events should obtain as increased taxation, according to the law of diminishing returns, brings mi its wake a decrease in trade. The vicious circle is thus completed and the problem is to know how "it"may be broken." If the Chinese Gor- ernment were with one bold stroke to abolish taxation on exports some improvement in the car- riage abroad of China products might be expected. The increase in exports would help to pay. for imports and thus the wheel would commence to turn in the reverse direction.

SECURITY THE KEYNOTE

sumed in Hongkong and certainly Chamberlain said that the value not more than one-tenth of the of those approved during the first exports are Hongkong produce. months of this year was £58.500,- Hongkong is, therefore, a passage 000, against $49,000,000, and only for trade and that passage is con- £37,000,000 the year before. This trolled at the two ends by factors Agure is of particular importance over which Hongkong has no con- because there are so many ancil- troi. At one end is mainly China,lary industries dependent upon the the economic development of building trade and because it which, though of great potential gives so large an amount of em- value, is only just beginning. While ployment. Lastly, the speaker took at the other end are all the coun- the index of retall trade, which he tries of the world trading with explained was less sensitive than China. It is pleasant to note with the production index and always regard to the latter that there is lags behind it. In August this year a slight turn of the wheel towards the index showed an advance of 5 prosperity. Particularly is this per cent over the same month of noticeable, with regard to United Kingdom. There are two general improvement in the con

the last year. This indicated that the occasions in the year when thedition of industry is now beginning British people, through the person to affect the purchasing power of take stock of their financial and of the Chancellor of the Exchequer, the British people.

Another means of evening up the trade situation would be by the contraction by China- of- for- eign loans for industrial purposes, This would also be of ultimate economic benefit to the country. Security, however, is the principal factor and so long as China ap- pears to be unwiling to afford full' and complete security to foreign enterprise in China so long will it be impossible to attract foreign capital. Another suggestion has been made, that of prohibiting the importation into China of certain foodstuffs. If there was any pos- sibility in the near future of China producing her own requirements in foodstuffs this might not be a bad move. As things are, however, prohibition of imports of foodstuffs will merely add to the hardships of the poor people without much in-commercial position. The Arst and creasing production. To increase production, intensive agriculture on modern lines will be necessary and there is as yet but little organisa tion through which this can be effected. Improvement in this direction will therefore be slow.

Commission Sitting

This question of Hongkong's depression is now. receiving" the serious attention of an Economic

Commission appointed by HE The

Encouraging Picture"

greater occasion is the day plain thought that the picture Taken as a whole, Mr. Chamber- which the Budget is pressented. by the Chancellor to the House of

presented by these figures is deft- Commons This is in the spring of pointed to this that the improve- nitely encouraging. The Agures the year. Later, at the beginning ment in trade has been carried of autumn, the Chancellor is the farther than one might expect if chief guest at an annual dinner" given at the Mansion House by the those figures which bulk most one, confines one's attention to Lord Mayor, at which it is custom largely in the pubile mind-name- ary for all the heads of the greatly, the figures of unemployment. by that redoubtable figure, the by the increase in the population British banks to be present, headed These latter figures, were affected

Governor, whose report it is hoped Governor of the Bank of England. and the ever-increasing progress

In the mechanization of industry with its consequent displacement of labour. This latter aspect Mr.

the most disconcerting in

will shortly be forthcoming. While

The Position In Britain this will be read with great inter-

Perhaps the latter event allows est, however, we must remember of a more dispassionate review of that the efforts of this Commission British trade. No new taxes are Chamberlain characterized as one cannot alter external influences proposed or remitted, and no poli-or and that the prosperity of Hong- tical motives detract from the modern industrial life. It may be kong depends greatly on outside objective presentation of the case, added that a subsequent speaker, factors. "

For this reason Mr. Neville Cham- namely, the Governor of the Bank berlain's recent observations on of England, drew the company's: British trade at the dinner at the attention to the fact that unem- tradeMansion House have a peculiar ployment in Great Britain has value, and a summary of certain of been reduced to something like his remarks is given here.

one-quarter in the last year or two.

.......Nationalistle Spirit. An appreciation of the position of Hongkong involves con- sideration of world wide trade! We must remember that world trade has decreased during the

#

out that any calculations as to the The speaker began by pointing last few years and that nearly state of trade based on returns of every country in the world has revenue which are from time to adopted a policy of closely conser-time published are almost certain ving its own resources, developing to be fallacous. The bulk of the its own products and Industries, inland, revenue comes in in the and as far as possible excluding first quarter of the year, and until those of other countries. Such then not even Treasury experts Rolicy carried to its logical con- clusion would mean the destruc-what the outcome of the year may can prophesy with any accuracy tion of a very considerable volume be. But, added the speaker, there of international trade. It is there are available some figures relating

Chamberlain observed that the In his concluding remarks Mr." noted improvement was mainly in the during the first eight months of home-trade: Nevertheless, 1934 British exports exceeded the value of those in the correspond ing period of last year by more speech the Board of Trade statis- than £20,000,000. Since this ties have been issued showing that this improvement continued in the ninth month, Le. September. Bri-

fore conceivable that this economic to trade which show what the nationalistic spirit will greatly be movement la. These Mr. Chamber tish exports in that month scoring modified in the next few years lain proceeded to give and they probably by series of agreements between countries or multilateral

are quoted here,

Taking the figures for produc

tions

the highest total for any month of

this year.

China qu

trade agreements. As with in- tion by British industries, the crease in rapidity of communica speaker remarked that it was cer- would appear to be at the begin- As regards China, that country does not appear sane. that tainly satisfactory to observe that countries will want to revert to the in nearly all cases they showed as of a new phase of develop dark ages 90 must International marked advance as compared with couragement and assistance. It is ment which will deserve all en- trade again become a world occu- similar figures for last year. Take, to be hoped that vigorous action pation. In the meantime the free he said, those for the second quar-will be taken by the Chinese au- port of Hongkong is in an unen-ter of the year. In the case of thorities to cut down all the over- viable position. It is indeed an textiles-not generally considered oasis of free trade surrounded by one of Great Britain's most pros

whelming unproductive, expenses deserts of tarif protection. The perous industries the index of and to concentrate on productive difference between Hongkong and production is now 91, as against sa development and the decrease of 'the geographical "simile is however last year. For chemicals it is 108 taxation Machinery that for the time being the oasis against 97 for fron and steel 104 ment will be more and fourlahes little or no better than against 78; and non-ferrous metals quired

the deserta

A Wrong Impression In considering the commerce of Hongka prone to the tha done by Hongkong prove

„EITURCOUS can readily.

we reaus

one-tenth of the importa

142 against 104, Railway receipts | Interests

advanced, not: spectacularly duties appreciably As to shipbuild- | and

tonnage under com ruction tha

and at the

of shipping

time up has

Coun

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