Sessional_Paper_1935 — Page 79

Appendix "A",

Tables I-XIII.

Appendix "A",

Table I.

75

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no statistics suitable for purposes of comparison were kept. While, with the pre- sent modern trend towards accurate and minute statistical investigation, it might by some be considered that there should be available more detailed data relating to the trade of the Colony it must be borne in mind that Hong Kong is virtually a free port, that the object of the authorities is to impose as small a burden as possible on trade and that the production of accurate and detailed statistical information is costly. To increase the value of statistical information relating to Hong Kong more money would have to be spent. This money would either have to be provided in some manner from present revenue or further levies would have to be imposed on the merchant community. In either manner the general burden on the Colony would be increased. In the nature of the trade of the Colony the resultant value is open to doubt, and though it would be of interest and of use if we could ascertain figures showing the export of Hong Kong products, we are of the opinion that fur- ther expense in this direction is to be deprecated in this present time of depre-

sion.

2. It is a generally adopted axiom that the truest comparative portrayal of a country's trade is that made in its own currency and it will be seen from the statistical appendices to this report, in which sterling figures are also given, that after the Great War and until 1924 the trade of Hong Kong in common with that of the rest of the world appeared to be steady and prosperous. During that time there ruled a high rate of exchange with sterling. Unfortunately, owing to the hiatus in figures, we cannot see the trend from 1925 to 1930. It will be remem- bered, however, that trade was badly hit by a big shipping strike in 1925. When we come to 1931 we perceive an increase in the Hong Kong dollar value of both imports and exports but the sterling value of the dollar had become less than half what it was in 1924. Since 1931, while there has been a gradual rise in the average rate of exchange there has been a persistent drop in the dollar value of both imports and exports. Thus in 1931 imports were valued at 652 million dollars or 34 million pounds sterling, while in 1933 the dollar value of imports had decreased to 432 millions an equivalent of 29 million pounds. This decrease has been accentuated in 1984 and an estimate based on the first nine months of the year gives for the whole year a dollar value of imports of only $402.8 millions, a rough equivalent in sterling being 29.7 millions.

3. The same tale is told with regard to exports which in 1931 amounted to 542 million dollars or 29 million pounds, in 1933 to 403 million dollars or 27 million pounds and in 1934 (estimate for the whole year based on the figures for the first nine months) only 316.8 million dollars or about 23.3 million pounds.

4. Perhaps the trend of depression as assessed by trade figures may be more accurately shown by those of the first nine months of 1934 compared with those of the same period of the previous two years as follows:-

1932

1933

1934

(Millions)

Imports.

Exports.

$477.8

£31.4

$352.3£23.2

$381.1

£25.5

$307.0£20.5

$302.1

==

£22.3

$237.6 £17.5

Appendix "A",

Table XII.

5. It will be seen that in terms of Hong Kong Currency imports in the first nine months of 1934 declined by 20.7% as compared with the corresponding period of 1933; and 36.8% as compared with the corresponding period of 1932, while exports in the first nine months of 1954, declined in value by 22.6% as compared with the first nine months of 1933; and 32.6% as compared with the first nine months of 1932.

6. Another indication of depression is the fall in wholesale prices. The Price Index for Hong Kong has been constructed on the basis of the declared quantities and c.i.f. values of commodities imported into Hong Kong, the year 1922 being taken as 100. In 1931 the index stood at a peak of 136.6 whence it has annually decreased until for the first half year of 1934 it stands at 95.9.