1939-03-30 — Page 9

SUPPLEMENT

Hongkong Daily Press.

Registered as a Nawapaper as the General -

Post Office in the United Kingdèm.

STARIJINED Lam.

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15-19 Marina House: Queon's Bond Custeni, G.P.O. Bax. No. 1.

HONGKONG, THURSDAY, MARCH 30, 1939.

VOLUNTARY LIMITATION OF OF RUBBER FOOTWEAR INTO U.K. FROM EMPIRE SOURCES

Summary Of Discussions

Held By General

Chamber Of Commerce

IMPORTS

The Sub-committes was unable to recommend acceptance of the proposal that Hongkong manufac- turers should limit their output to - four million pairs of summer foot- wear which would put them back to the position attained two years

Mr. Rowe also said that the low ago. In the first place no machin- price to which competition had ery existed for preventing the es- brought the Hongkong shoes was tablishment of new factories, in Itself an objection in the eyes which was likely to occur if higher of United Kingdom manufactur- prices made the business more at- ers, who suggested that Hongkong | tractive. In the second place, at- manufacturers could help them, tention was drawn to the fact that and at the same time help them one of the local factories was oc- selves, if they would make fewer | cupled almost exclusively with the shoes at higher prices, instead of manufacture of shoes which were increasing outputs to compensate retalled in England at 6d. per shoe

manufacturers to form an associa factory during the past season be- tion and fix prices from, factorying approximately 2 million pairs. | to "consumer through all inter-

mediate stages,

BENEFIT TO INDUSTRY

OBJECTION TO LOW H.K. PRICES for low prices. He urged local or 1- a pair, the output of the

In view of references in Parliament recently to negotiations with a view to voluntary limitation of im- ports of rubber footwear into the United Kingdom from Empire sources, the Hongkong General Chamber of Commerce has issued the following summary of the discussions held locally,

The United Kingdom manufad The majority of the Bub-com- turers asked. -Hongkong manufac-mittee was of opinion that the in- turers to enter into a price-main-dustry would beneft, both here tenance agreement (with 10 per and in the United Kingdom, ir cent, increase of prices) and into local rubber shoe manufacturers a voluntary limitation scheme for would enter into and adhere to a a two-year period and to under-price-maintenance agreement; al- take to limit output to the United so that, to forestall agitation ad- Kingdom tä

4,000,000 pairs of summer footwear,

500,000 H * Plimsolls, 250,000

..boots

The Sub-committee recommand- ed that the Chamber of Commerce

During recent years the increased importations of rubber footwear into the United Kingdom from Hong- kong have been viewed with concern by United King- dom manufacturers. There have been references to the subject in public speeches and in Parliament. It

verse to Hongkong's interests un- should be noted that Hongkong-made shoes are im-“

der Impérial Preference, it would ported into the United Kingdom free of duty under Im-

be advisable for the manufactur- perial Preference, the use of Empire rubber and canvas

ers to agree to a voluntary limita" qualifying them for the necessary Empire content.

tion of output. The figure of 4- With a view to discussing The United Kingdom manufac- other lines of footwear. There suggested

and to promise not to develop in 1000,000 palra of summer footwear by United Kingdom the possibility of voluntary turers also complain of compet would be a breaking clause in the manufacturers appeared impracti limitation of output and some on in the high-priced class from event of the position being affect cable in all the circumstances, but form of price control, Mr. S. Canada, and it is their destreted by new competition coming into the Sub-committee suggested that

arrive at an agreement with both T. Rowe, representing United

existence elsewhere, e... 'in an-

a figure lower than 1938 produc- countries for a voluntary limitation Kingdom manufacturers, ar-

tion be considered. rived in Hongkong early in market. The Canadian manufac-

of export to the United Kingdom Other British Colony.. 1939 and held. discussions turers have expressed sympathy

CONFIDENTIAL FIGURES with the Imperial Preference with the proposal, provided Hong- After various meetings with Mr. invite the rubber shoe manufac- Sub-Committee of the Cham-kons is also willing to co-operate. Ratre, the Imperial Proference turers to do their utmost to reach ber and the local rubber foot-[Mr. Rowe, therefore, sailed to Sub-Committes of the Chamber an agreement on the lines above wear manufacturers,

Canada from Hongkong.

indicated. presented a report, 'which was The United Kingdom manufac-AGITATION INEVITABLE

adopted by the General, Com- In the course of further discus- was that, after the

mittee. turers case

slons, Mr. Rowe amended his pro If nothing is done, the United introduction of the crepe sole shoe Kingdom manufacturers state that

The Committee discussed the posal as to limitation of output in about 1924, the manufacturing in- there will inevitably be agitation, provided by Mr. Rowe and showed he had learned as to the factory bearing of the confidential figures one particular. In view of what dustry developed

considerably. both from manufacturing interests that from 1954 to 1937 United sold retail in the United Kingdom Home manufacturers did not reap and

manufacturing exclusively shoes from trade unions, for a what they considered their right-modifcation

Kingdom manufacturera had in ful share of the benefit on account ference. The argument against fact had more than 50 per cent, of a dy, per shoe, he increased the severe Japanese competition. Hongkong will be unfair com- the Home consumption. It was the limit, for summer footwear, to

Agure of four million, suggested as. This was suppressed by action un-petition" from workers on scales only in 1938 that, for the first nifie five million, the other points to EE- der tariffs, but was immediately of wages lower than those which months, the total showed the main the same. He added that the succeeded by Hongkong compet prevail in the United Kingdom, United Kingdom manufacturers

productions to be below 50 per conditional upon price control.

proposed limitation was strictly cent. of the total; and this might

tion, which was duty" free under Imperial Preference and therefore could not be excluded.

.....

.HONGKONG COMPETITION

of Imperial Pre-

United Kingdom manufac¬ turers state that Hongkong exports have almost complete-- ly eliminated their footwear i from other British markets, while Japanese competition has captured the foreign mar- kata." 15. fo\"only reasonable, they urge, that they should » have at least 50 per cent. of their own home market in the

· lines in which Hongkong com- petes,

With reference to the claira that Hongkong shoes met s hitherto unsatisfied. demand ). for low-priced article, Mix]--- Rowe admitted that to some extent, a market had been created, first by the Japanese shoe and subsequently by the Hongkong shoe, but he declar- ed that the presence of so many low-priced articles" on the market was detrimental to the Home manufacturers, who thereby lost many potential customers and found them-Rowe brought candidential - figures] sèlves unable to expand their business in proportion to the expansion of demand. They were compelled, also, to reduce their prices to uneconomie levels on account of the Hong- kong

Mga Petition.

Hongkong exports to the United Kingdom of summer footwear have risen from approximately 2,000,000 pairs per annum between 1936-1936| to 4,540,000 in 1937 and 5,428,000 in the arst nine months of 1938. Mr.

showing that importations from other countries were beginning to exceed home production in sports shoes, principally on account of Importations. from- Hongkong, which seemed to be ever on the Increase

not be the case on the whole year's | LIMITATION SCHEME figures. Total United Kingdom output of rubber footwear was well At further meetings it was sub...“ maintained and even in the class mitted on behalf of Hongkong in- in which Hongkong competed terests. that, without Government there was a reasonable main=| co-operation, any limitation tenance of output.

schetne which might be agreed up- on would be in danger of breaking down. It was suggested that it might be possible to institute a system of special certificates similar to those under which ex2 - ports of Colonial sugar to the United Kingdom were controlled, the certificates to be issued by the Hongkong Government and their production to the United Kingdom Customs to be a condition of ad- mission of the goods under Im-- perial Preference. If new facts- ries had no right to participation in the manufacture for markets other than the United Kingdom, it was submitted that this would meet the present manu apprehensions in regard

The inference was that Home manufacturers tended to overstress the effacts of Hon kong competition. The Im perial Preference Bah-Commii- too's view was that Japan created a market (to which Hongkong succeeded) for a cheap shoe attracting a class of consumer which did not previously exist, and for whom the Home manufacturers were unable, on secount of higher Jabour sosis, to enter Their most: serious competitões ap peared to be the Canadian manufacturing operating in the higher priced class.

turers

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