and batteries, canvas and rubber footwear, rattan furniture, trunks, suitcases, umbrellas and rope. Almost all these exports went to China and the nearby states of the Philippines, Netherlands East Indies, Malaya, Siam, French Indo-China, Burma and India. The only significant exports to Britain were 268 tons of lard valued at £7,000 and £50,000 of preserved ginger.
In the 1930s exports to China were badly affected by a steep rise in import duties. Under the treaties imposed on China in the nineteenth century tariffs were limited to five per cent, but over the period 1926 to 1933 China achieved full tariff autonomy and soon raised its duties to gain additional revenue, and also to protect its own industries and substitute local manufactures for foreign imports. For example, the duty on rubber-soled shoes remained at five per cent until 1931 when it was raised to 17 per cent and then to 30 per cent in 1933. Similar protectionist moves were made by neighbouring countries in an attempt to combat the world depression of the 1930s. The Philippines raised its tariff on rubber shoes from 25 per cent to 100 per cent in 1933. This escalation in tariff barriers affected Hong Kong's trade and economic prosperity in two ways: the entrepôt trade through Hong Kong was reduced since China was deliberately seeking to curtail foreign imports; and Hong Kong's domestic exports of manufactured goods to China were also affected. A number of factories were forced to close having lost their markets in China. The value of imports and exports passing through the harbour dropped by 40 per cent between 1931 and 1934. Hong Kong's economy was saved from ruin by the amazing growth in its exports of manufactured goods to empire markets. This was an unintended consequence of the decisions taken at Ottawa to erect trade barriers to exclude Japanese exports.
Page 17
II
When the colonies of European settlement had advanced to internal self-government it was no longer politically possible for Britain to exercise control over their trade and tariff policies. The dominions wished to protect their infant industries against imported manufactures, including imports from Britain. At imperial conferences the dominion premiers offered to grant a preferential rate of duty to British goods and asked that Britain should reciprocate by granting a tariff preference to empire produce over foreign goods. Britain refused this offer and remained committed to free trade. The dominions then acted unilaterally to make Britain a beneficiary of their tariff policies. Canada was the first to grant tariff preferences to Britain in 1897, followed by South Africa, New Zealand and Australia. In 1907 the preferences granted to Britain by Canada were extended to the West Indian colonies, South Africa, New Zealand, India, Ceylon and the
and batteries, canvas and rubber footwear, rattan furniture, trunks, suitcases, umbrellas and rope. Almost all these exports went to China and the nearby states of the Philippines, Netherlands East Indies, Malaya, Siam, French Indo-China, Burma and India. The only significant exports to Britain were 268 tons of lard valued at £7,000 and £50,000 of preserved ginger.
In the 1930s exports to China were badly affected by a steep rise in import duties. Under the treaties imposed on China in the nineteenth century tariffs were limited to five per cent, but over the period 1926 to 1933 China achieved full tariff autonomy and soon raised its duties to gain additional revenue, and also to protect its own industries and substitute local manufactures for foreign imports. For example, the duty on rubber-soled shoes remained at five per cent until 1931 when it was raised to 17 per cent and then to 30 per cent in 1933. Similar protectionist moves were made by neighbouring countries in an attempt to combat the world depression of the 1930s. The Philippines raised its tariff on rubber shoes from 25 per cent to 100 per cent in 1933." This escalation in tariff barriers affected Hong Kong's trade and economic prosperity in two ways: the entrepôt trade through Hong Kong was reduced since China was deliberately seeking to curtail foreign imports; and Hong Kong's domestic exports of manufactured goods to China were also affected. A number of factories were forced to close having lost their markets in China." The value of imports and exports passing through the harbour dropped by 40 per cent between 1931 and 1934. Hong Kong's economy was saved from ruin by the amazing growth in its exports of manufactured goods to empire markets. This was an unintended consequence of the decisions taken at Ottawa to erect trade barriers to exclude Japanese exports.
17
II
When the colonies of European settlement had advanced to internal self- government it was no longer politically possible for Britain to exercise control over their trade and tariff policies. The dominions wished to protect their infant industries against imported manufactures, including imports from Britain. At imperial conferences the dominion premiers offered to grant a preferential rate of duty to British goods and asked that Britain should reciprocate by granting a tariff preference to empire produce over foreign goods. Britain refused this offer and remained committed to free trade. The dominions then acted unilaterally to make Britain a beneficiary of their tariff policies. Canada was the first to grant tariff preferences to Britain in 1897, followed by South Africa, New Zealand and Australia.” In 1907 the preferences granted to Britain by Canada were extended to the West Indian colonies, South Africa, New Zealand, India, Ceylon and the
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