Directory_and_Chronicle_1937 — Page 843

CANTON KOWLOON FRONTIER DISTRICT

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responsible, at least in part, for the falling-off in the volume of imports during the latter part of the year. On the whole, however, the trade of this district may be considered to have been well maintained, a promising feature being a small but gratifying increase in the value of exports. With more settled rates of exchange resulting from the nationalisation of silver both in China and Hongkong, a decided all-round improvement during the coming year is confi- dently anticipated. The following are the values of the direct foreign trade during the year under review, with comparative statistics for the preceding year: imports, 70.4 million dollars against 75.1 million dollars in 1934; exports, 5.6 million dollars against 5.5 million dollars. As was the case in 1934, when 2.7 million quintals were imported, the quantity of rice imported was only 2.6 million quintals, as compared with 5.3 million quintals in 1933. The decline in the volume of this commodity must be attributed to a bumper second local crop and to provincial taxation. Fuel oil declared for refining purposes has continued to be imported in large quantities, the figures for this commodity recording an excess of 7,000 metric tons over the large quantities imported during the previous year. Extensive purchases of machinery were continued throughout the year. The increase in the value of machinery imported for sugar centrals, breweries, and distilleries was approximately 0.3 million dollars, while machinery to the value of over 1.5 million dollars was also imported for the Provincial Factory on the outskirts of Canton, the erection of which was completed during the year. Gasolene continued to be imported in large quantities, but fell short of the previous year's importations by 1.7 million litres Bus companies have displayed considerable interest in Diesel- engined vehicles, and it appears quite possible that as the existing buses are replaced the new ones will be furnished with Diesel engines. Should this be the case, the demand for gasolene will be materially affected. During the year marked progress was made in extending and improving the road system of the province, and there can be little doubt but that these facilities are adversely affecting the junk passenger trade. Actually, the decrease in the total number of water-borne passengers for the year is small but the greater facilities for speed and comfort offered by the rapidly increasing new land routes are bound to attract the travelling public. The railway was well patronised throughout the year, more particularly during the latter half, when the inauguration of cheap fare specials attracted full trains. The total number of rail-borne passengers for the year was 1,302,039, representing an increase of approximately 10,000 over the previous year's figures. It is worthy of note, however, that while the number of passengers using the railway during the last two months of the year did not exceed the average, passenger traffic by the Hongkong-Canton steamers experienced a sharp decline. Smuggling of import cargo from Hongkong to the coastal areas of China was not nearly so intensive as in recent years. This may be attributed partly to improved preventive measures, partly to the general falling-off in the demand for foreign goods, and more particularly to the fact that these areas are now mainly supplied by the road routes from Canton and Swatow. Smuggling across the frontier and into the immediate neighbourhood of Canton, however, is still prevalent to the extent of making it unprofitable to import such commodities as sugar, silk, woollen and cotton piece goods, matches, and the higher-duty- paying medicines and delicacies through legitimate channels. During the first half of the year Hongkong was used as the base to which silver was smuggled for eventual shipment to the European and American markets. In June 1935, however, the Hongkong Government rendered valuable assistance to China by placing an embargo on the export, except back to China, of Chinese silver dollars and bullion. The rate for Hongkong dollars in Canton silver money rose from $1.50 to $1.19 in December. Sterling exchange on Hongkong fluctuated between 28. 6d. and 1s. 4. to the Hongkong silver dollar, while since the nationalisation of silver by the Colonial Government the rate has remained steady at 18. 34d. for the Hongkong Treasury dollar note The whole financial situation was, of course, overshadowed by the enormous increase in the export of treasure from Hongkong, the total value of treasure, i.e., gold,

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