16
sufficient to qualify for preference in colonial 'native' markets then it is a very bad outlook for us as I cannot see how the growing population of Victoria and Kowloon are going to find employment without industrial development,
I therefore consider it as politically important as it is, from our point of view, economically advantageous to give the Hong Kong Chinese a commercial attachment to the empire. Our military and naval defences are designed against external aggression, but if relations with China ever became antagonistic there would be an enemy totalling over one million within the fortress gates, unless their bread is liberally spread with Empire butter.
The governor's plea for Hong Kong's manufacturing industry was warmly supported by all the Colonial Office officials who wrote minutes on this despatch. It was quickly passed up to the colonial secretary, W. Ormsby-Gore, who endorsed it as 'an admirable letter' and gave instructions for copies to be sent to the Foreign Office and the Board of Trade." Officials made frequent use of Caldecott's argument of imperial interests when attempting to repulse proposals from the Board of Trade and other departments to place further restrictions on Hong Kong's manufactures in the years that followed.
British textile manufacturers continued to protest that they were suffering from unfair competition in the British and colonial markets and demanded that Hong Kong exports should be excluded by tariffs or quantitative restrictions. In order to fend off these pressures the Colonial Office suggested to the governor of Hong Kong that all cotton and artificial silk piece goods exported to Britain and the colonies should be accompanied by a certificate that they had been made from cloth which had been spun, woven and finished within the empire. This proposal posed difficulties for Hong Kong. There were no spinning mills in the colony and more than half the cotton yarn used in the production of piece goods and hosiery was imported from Japan and Shanghai. In order to continue to enjoy the benefits of imperial preference, the Hong Kong General Chamber of Commerce secured the manufacturers' agreement to switch their purchases of yarn from China and Japan to cotton mills in India which were within the empire. But the manufacturers of goods made from artificial silk protested strongly that the only alternative to yarn from Japan was British yarn which was double the price ($1.70 a pound compared to 85c). This would destroy their competitiveness with Japanese products in British Malaya, the African colonies and the West Indies and drive them to bankruptcy. The Colonial Office put its case to the Board of Trade which refused to compromise, asserting that if Hong Kong was to continue to enjoy the advantages of the
16
sufficient to qualify for preference in colonial 'native' markets then it is a very bad outlook for us as I cannot see how the growing population of Victoria and Kowloon are going to find employment without industrial development,
I therefore consider it as politically important as it is, from our point of view, economically advantageous to give the Hong Kong Chinese a commercial attachment to the empire. Our military and naval defences are designed against external aggression, but if relations with China ever became antagonistic there would be an enemy totalling over one million within the fortress gates, unless their bread is liberally spread with Empire butter.
The governor's plea for Hong Kong's manufacturing industry was warmly supported by all the Colonial Office officials who wrote minutes on this despatch. It was quickly passed up to the colonial secretary, W. Ormsby- Gore, who endorsed it as 'an admirable letter' and gave instructions for copies to be sent to the Foreign Office and the Board of Trade." Officials made frequent use of Caldecott's argument of imperial interests when attempting to repulse proposals from the Board of Trade and other departments to place further restrictions on Hong Kong's manufactures in the years that followed.
British textile manufacturers continued to protest that they were suffering from unfair competition in the British and colonial markets and demanded that Hong Kong exports should be excluded by tariffs or quantitative restrictions. In order to fend off these pressures the Colonial Office suggested to the governor of Hong Kong that all cotton and artificial silk piece goods exported to Britain and the colonies should be accompanied by a certificate that they had been made from cloth which had been spun. woven and finished within the empire. This proposal posed difficulties for Hong Kong. There were no spinning mills in the colony and more than half the cotton yarn used in the production of piece goods and hosiery was imported from Japan and Shanghai. In order to continue to enjoy the benefits of imperial preference, the Hong Kong General Chamber of Commerce secured the manufacturers' agreement to switch their purchases of yarn from China and Japan to cotton mills in India which were within the empire. But the manufacturers of goods made from artificial silk protested strongly that the only alternative to yarn from Japan was British yarn which was double the price ($1.70c a pound compared to 85c). This would destroy their competitiveness with Japanese products in British Malaya, the African colonies and the West Indies and drive them to bankruptcy. The Colonial Office put its case to the Board of Trade which refused to compromise, asserting that if Hong Kong was to continue to enjoy the advantages of the
No comments yet.
Private notes are available after approval.