Sessional_Paper_1917 — Page 89

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NEW GOVERNMENT BU DHING, Des Voeux Road,

HONGKONG, 10th January. #IT.

SIR, I have the honour to acknowledge receipt of your reply No. 3310;1916 to this Chamber's letter of 5th December regarding the purchase of Empire-made goods and the placing of all contracts with British firms.

2. This Chamber would be glad to see the system of requisitioning through the Crown Agents in London entirely abolished and opportunity given to all British Mer- chants in the Colony to tender for Government requirements.

3. My Committee is of opinion that only British firms should be allowed to tender for local contracts, but should this be found impracticable then the Chinese should be required to guarantee that the material supplied is of British manufacture unless not produced in the Empire) and failing such guarantee a higher tender from a British firm should be accepted.

4. In the case of the Green Island Cement Co. no real argument exists against the adoption of the general principle, for the finished product is a British product, produced in the Empire. In any discussion of protective measures my Committee hold the view that raw materials are generally excepted and this exception would embrace both the case of the Green Island Cement, and the consumption of Chinese or Japanese Coal.

A Company with British Capital manufacturing in a foreign country on the other hand, should be penalised as against competitors operating in the Empire, for the former are probably doing so partly to evade charges within the Empire.

5. Public utility Companies such as Gas, Electric Light, Telephone and Tramway Companies would probably be largely influenced by the example of a Government practising principles of "British for the British". The fear of Government absorption might prove sufficient, and in any case legislation obliging such companies to us British Machinery, Stores, etc., where practicable, would not be unjust, for the public is their stay and support.

I have, &c.,

E. A. M. WILLIAMS, Secretary.

The Honourable

The Colonial Secretary.

3310/1916.

COLONIAL SECRETARY'S OFFICE, Hongkong, 10th February, 1917.

SIR,-1 am directed to acknowledge the receipt of your letter of the 10th January regarding the purchase of Empire-made goods and in reply to inform you that the Colonial Government cannot agree with you on all the points raised especially with regard to the Crown Agents' system. After long experience the Colonial Government are completely satisfied with this system.

I am to add that the correspondence will be forwarded to the Secretary of State for the Colonies for his consideration.

I have, &c.,

CLAUD SEVERN, Colonial Secretary.

The Secretary

Hongkong General Chamber of Commerce.