1940-02-29 — Page 7

HONGKONG DAILY PRESS

MR. WINSTON CHURCHILL'S

CABLES

GLOWING

ADIDLIMI TA DAVAL NAVY IN CONFIDENT

SUPPLEMENT

Hongkong Daily Press.

Registered as Newspaper at the Genorul

18-19 Marina House, Queen's Road Castrai O.P.O. Box No. 1.

Post Office in the United Kingdom." 報西 ESTABLISHED 1857 剌孖

HONGKONG, THURSDAY, FEBRUARY 29, 1940.

CHINESE TRADE INCREASE FAVOURABLY

REFERRED TO

BANK ANNUAL

AT HONGKONG MEETING

War's Strain On Japan's Economic System

CONCERN OVER RISING COST OF GOVERNMENT

IN HONGKONG

The Chinese Government's work in developing trade despite transportation and other difficulties, and the persistence and enterprise of Individuals in keeping alive the channels of commerce, were favourably com- mented upon by the Hon. Mr. A. L. Shields, Chairman of the Board of Directors, at the annual meeting of the Hong- kong and Shanghai Banking Corporation' yesterday.

Reference was also made by Mr. Shields to the servic- ing of the Chinese Government foreign loans. He said that the interruption of the debt service was only a tem- porary measure, and that responsibility for the fallure did not rest with the Chinese Government.

Speaking on the effects of this lost has been met out of the the Sino-Japanese hostilities year's earnings so that the re- on Japan, he said that the sources of the Bank have not been economic system of that impaired. I trust you will ap country was

prove of this action which is, I undergoing Severe strain and it was by no think, the only sound polley. means easy to judge how de- velopments would work out in the present year.

Mr. Shields sald certain aspects

Cave rise to uncasiness,

whether economies affected," he said.

carinot be

months.

Trade

The Customs Foreign figures for 1939 mush again" be interpreted with great caution cwing to the fact that their method of presentation, the fluctuating exchange rates, trade In spite of dislocations at some controls and other complications, ports and the closure of certain make comparisons very unreliable, channels: new outlets have de- However, an examination of these veloped and the general rise in figures makes it clear that, com- the prices, of commodities pro-pared with any of the last three duced in the countries where we years, import values Increased operate, has caused a welcome im-appreciably (and this omits war provement in

recent

munitions), whilst export values Stock markets in the important were lower. centres out East have also re- The growth in the adverse sponded this too has been de- balance of trade." which was part cidedly helpful, although we are ticularly pronounced in: the first anxious that such rises should not balf of the year, caused a strain be overdone.

which fell almost entirely on the Shanghal exchange market. This Was so, because trade through the Chinese controlled ports was kept fairly well balanced by the mea-" sures of restriction adopted by the Chinese Government, but in North and Central China condition's were such, as I will show later. as...to

FOREIGN LOANS

I do not propose this year to refer to political events in the Far East, except in so far as they affect certain toples with which We are particularly concerned. One of these topics relates to the Chinese Govemment foreign loans, in floating many of which we encourage a demand for goods took a leading part. During the while exports suffered from the past year these loans,

situation prevailing in the hinter- I as tum afraid

land. Later on in the year the some of you are painfully aware, have

ra in exchange checked the im gone into complete default for reasons port demand and the rise in

have

THURSDAY, FEBRUARY 29, 1940. -PAGE 7

LIQUEUR BRANDIES

beyond the control of the Chinese prices consequent on the European Government. The measures taken war resulted in an improvement last Spring to set up a currency in the export position stabilisation fund led to hopes MOVEMENT OF TRADE Government to come to a tem- ment of trade, what stands out that it would be possible for the In connection with the move-

porary arrangement whereby dur-above everything else is the fact BALANCE SHEET

ing the period of hostilities the that in spite of transportation sheet, there have been sundry secured loans would continue to tinue to flow inwards and out- With regard to our Balance service of the Customs and Salt and other hindrances, goods con-

transfer of funds abroad for the difficulties, military Interference »"

changes, the principal ones being be possible, even though at a rewards in an astonishing volume of the Colony's financial situation culation in excess of our authoris-fact initiated by the Minister of long as crops are grown and es- a reduction in our notes in cirduced rate. Negotiations were "In considering the circumstances. So "I believe that most of us con-

ed issue by 15 million dollars, Finance and discussions took place sential manufactured cur with the remarks of the Warton in our holding of Government Committee in London.

which 15 offset by a similar reduc-with

goods are Revenue Committee about the con-Certificates of Indebtedness. Cur-

the Chinese Bondholders' available, so long will they keep tinuous rise in the cost of govern- )

moving in China. ment and support their recom-rent Accounts are lower by some that time in the home press was prise of individuals have been A question which was raised at The sheer persistence, and enter- "mendation that an official investi-33 million dollars, but on the other that of the prior rights of certain responsible for much of this, but gation should be held to ascertain about 18 million dollars. On the ed, and quite justifiably in our themselves taken a very, active

hand Bfils Payable are higher by loans. It was strongly represent the Chinese Government other side of the book, Cash is opinion, that under the terms of part in fostering the cutflow of Securities by 29 million dollars, had claims on Customs, or Salt ment's difficulties are now creater. lower by 10 million dollars and their contracts the various loans exports. Naturally the Govern- against which Bills Receivable Revenues, or both, ranking in or than ever before as a result of the haye increased by about 35 million der or date, and that this distinc- loss of Namming and the bombing dollars.

tion should therefore cognised as a matter of principle.

be re-of the Yunnan Railway."

Shanghai merchants, both Chi- ACTION SUSPENDED " nese and foreign, have also played Unfortunately of accounts having been in your than they had ever been in the decision was reached, the diffi-wheels of trade moving, and last before a finala prominent part in keeping the hands for the required period, I history of the Bank. Last year culties which arose in the Shangyear they managed to overcome will, with your permission, take your Chairman noted how pre-hal exchange market forced the many of the obstructions which them as rend

carious and changeable the cut-Minister of Finance to suspend existed in 1938. After making full provision for lock must inevitably be whilst action. He made it clear, how- all known losses and contingencies China and Japan remained ants-ever, that the interruption of the tonnage of vessels which cleared A remarkable fact is that the after writing down Invest-

gonistic. Now we find ourselves in Debt Service was only a temporary from Shanghai for foreign coun ments, the net pronts for the year the third year of this Sino-measure, and that the Chinese tries was in 1939 only 6% lower amount to $13,333,985.48. to which taking place on our very doorsteps of resuming the full service of and the port of Shanghai thus Japancae conflict which has been Government had every intention than in 1936, the last normal year, must be added. brought forward from last year.

and the end of which is not yet in their obligations at the earliest shows that it will in due course The interim dividend of £400,- sight. On top of this our own possible moment. 000 paid at 1/23/4 and Directors country is involved in a war which

have no difficulty in recovering. As a gesture of good-faith, es-its position as one of the first remuneration have to be deducted may prove to be the most serious timated quotas of the shares due half-dozen ports in the world. There then remains available for in its long history. Considering from Customs and Salt offices, distribution $10.165.111.06; which it this state of affairs as well as our which

The final dividend approved yes terday was - £2.10s. per share, which was lower by 10 shillings than last year's dividend.

CHAIRMAN'S SPEECH 'The Hon. Mr. A. L Shields, In 1938 your Chairman warned Chairman, sald: Ladies and Gen-shareholders that conditions tlemen. The report and statement the Far East were

and

To pay a final dividend

of £2.10/- per share

(subject to the dedus-

$3,400,634.26

tion of income tax)..$ 6,153,781.61

Transfer to Back Pre-

mises: Account

Carry Forward to New

Account

dend,

in

more serious

Of great importance too was the the manner in which last year Bhang-

still remain under is proposed to allocate as follows: proposal to reduce the final divi- direct administration of the Gov-bal re-established itself as the shareholders would have ernment; have throughout the past main manufacturing and supply justification for expecting & year been regularly set aside in depot for such parts of the interior aloomy report from their Board of the Central Bank of China in as can be reached (and these are Directors. But as a matter of fact national currency reckoned at the many), for coastal ports and for the strength of our balance sheet official rate of 1/2.1/4d. 300,000.00

is only too apparent. It is the

countries further afield. A clear The total revenue collected by ludication. of the growth of this 3,411,328.65 politicul outlook that is depress the Chinese Maritime Customs Industrial activity is seen in the

ing. $10,105,111.06

Administration amounted to 331 consumption of electricity supplied The figures of our balance sheet I would remind you that several But in fact roughly 33% of this which at the end of the year ap

million dollars in the year 1939. by the Shanghai Power Company have been converted at the rate of of our branches such as Hankow, revenue was collected in ports un-proached" the record output, This 1/27/8d, per dollar.

Canton, Foochow and Swatow are der Japanest control, and we ex was in spite of the fact that Chi- A REDUCTION

in treaty ports which are virtually timate that at the end of the year nese factory owners still left un- Your Directors regret that it has riosed to trade. From Hamburg some 380 million dollars of Cus-occupied and unworked Important been necessary to recommend a We of course have no information, toms funds should have been lying plants In the Northern and East- reduction in the final dividend by but the British members of the in the Yokohama Specle Bankern parts of the Settlement. 10/- this year, but I am sure you sta got home safely. Other waiting the outcome of the Sin will realise that the heavy decline tranches are in places where trade Japanese conflict.

. CLOSED TO TRADE

in the value of the Shanghai dol- Is greatly handicapped by political lar necessarily means a decline in difficulties, currency experiments the Hongkong dollar value of in- fand trade controls. Yet we have vestments which such an institu-weathered the Far Eastern, war tion as the Bank must have in for two and a half years without Shanghal. I am glad to say that suffering any severe effects.

FORMER SPEECH

(cheers).

"We have reason to know that several of them have sheered off very LONDON, Feb. 28 (BWS)-The quickly when they found that the Manchester Guardian, comment fabermen who bad only just been ing oh the speech of the First given a weapon fired back upon them.

Thousands of guns of all sorts and Lord yesterday, which has been sizes are being issued to our merchant, received in the press generally and fishing fleeta.

MU, NAZI RETORT-

It is clear, therefore, that ̈ responsibilities for failure to meet the service of the Cus- toms Loans does not for the time being rest on the Chinesa Government.

H.M.S. Nelson Was Holed

While there is a strong under- current of optimisti in commer-.. cial and industrial circles in Shangbal, we must emphasise that Go long as the administrative problems of Greater Shanghai are unsettled there will be reasons for dissatisfaction about the stun

founderings increased” TOE me' second time since the beginning of the war,

OLD RESERVE

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Facts Concerning

Oil

Exports From Rumania Unfavourable To Nazis

an LONDON, Feb. 28 (BWS)-That facts concerning Rumanian oll ttle-

exports are by no means so favourable to Germany, as superficial ob- servers have supposed, is the conclusion of an analysis of recent, Rumanian oll exports in the Petroleum Press Service, semi-official Journal of the petroleum industry.

In consequence, it is stated, of, principal buyer taking 1,285,000 the continued decline in Rumanian tons, compared with 99,000, in production and the moderate in 1938, which brings the German crease in home requirements the share to 30 per cent, of the total --In country's export surplus was fur-Rumanian of exports compared

Mr. ther reduced during 1939.

with 22 per cent. in 1938.-

for Total exports of mineral oll, tri-

But the expansion of supplies to

at 1 cluding bunker sales, amounted in Germany took place in the first olish 1939 to 4,178,000 metric tons, eight months of the year and the col- against 4.495.000 in 1938, or a de-war months have actually witness- riate cline or 7 per cent.

ail-

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nationality is not known.

The collision, occured of the The increase is cleven cents per Scottish coast on February 24

$100

with considerable satisfaction, re-

LONDON. Feb. 28 (Router) The

LONDON, Feb. 23 (Reuter)-The calls the speech by Mr. Winston battleship HMB Nelson, which The Nazis have retorted by saying Churchill on a similar occasion in Mr. Churchill yesterday disclosed first consignment of over 13,000 this entitles them to break all con- 1915, though more actions had was struck by a mine in Decem- garments for Hivilian hospital, and ventions which they have already been fought at sea than during ber, was holed. It is believed that evacuees arrived in Britain from broken many times over. (laughter).

"They may be, of course, able to the present, we were still allow some members of the crew were the American Society for British

Medical and Civilian Aid, apply their methods on a larger scale ing imports to reach Germany injured.

PRINCIPAL BUYER

ed a decline of 30,000′ tons compar-

ed with the corresponding period in 1938. This decline is, of course,

As in previous years, Germany, largely attributable to the Allied including Czechoslovakia, was the blockade.

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Estimates of the Board Education for 1940 show an in- crease over last year of £302,537, The total for 1940′ is £62,544,573

(BWB).