Sessional_Paper_1935 — Page 82

78

4. The development of Kowloon during the decade 1921 to 1931 is evidenced by the fact that in this decade the population of the island of Hong Kong increased by only 17.79% as compared with an increase of 42.19% in the previous decade. whereas the increase of population in Kowloon between 1921 and 1931 amounted to 113.06%.

5. The total population of the Colony was recorded in 1931 as consisting of about $21,000 Chinese and about 28,000 non-Chinese. Of the 821,000 Chinese only 33% are recorded as having been born in the Colony the remaining 67% having been born in China (65% in the Province of Kwangtung). For those de- sirous of examining this position further it may be mentioned that the length of residence of the Chinese population has been gone into carefully in the 1931 Census Report. If suffices here to quote from that report, "The population still remains to a large extent migratory, a large proportion going backwards and forwards between the Colony and China. With the increase in family life this com- ing and going may be reduced somewhat, but the returns from this Census show that it still continues to a very great extent ".

6. From the above it will very naturally and correctly be inferred that over three quarters of a million Southern Chinese directly make a living in Hong Kong. There is no doubt that very many more in China derive their living from the ac- tivities of their compatriots in the Colony.

7. The Chinese population of the Colony and its commercial and industrial activities is of great value to its parent provinces in the same way that those Chinese who have gone abroad to Singapore and other parts of the world are a great asset to China. The Chinese people in Hong Kong and abroad are by their industry able to create wealth which they remit to the parent country. A recent estimate of this wealth by Mr. Remer in his book, ("Foreign Investments in China ") places remit- tances to China from Chinese abroad at a varying amount of $150 to 200 millions per annum. As the vast majority of Chinese emigrants come from the Southern Provinces and because of the excellent exchange facilities existing in Hong Kong, the bulk of these remittances pass through the Colony.

8. Inasmuch as depression in Hong Kong has caused economic stringency amongst its large Chinese population the latter's remittances to China have de- creased, and in some cases because of lack of occupation the workers are forced to return to their native provinces where they remain idle or even become destitute. Neither Hong Kong nor South China is benefited and the result is yet a further rise in the tide of depression.

9. It appears to us that South China is Hong Kong's largest and logical market and that South China needs the facilities which Hong Kong can afford. Close con- tact and effort towards mutual benefits, therefore, seem to be the only likely move which will tend towards increased prosperity. Judging from the Press, Can- ton would seem at the moment to be determined to be economically as independent of Hong Kong as she possibly can and the problem therefore, is how to turn this shortsighted spirit of independence into one of co-operative movement to the mutual benefit of both parties. In the long run of the world's history, policies of careful and balanced co-operation have always proved more efficacious than poli- cies of inconsidered independence. It may, in this connection, not be amiss to mention the recently concluded Hong Kong-Canton Railway Agreement in the nego- tiation of which mutual concessions were made in the greatest spirit of friendliness towards a final agreement. The value of an agreement on that basis can readily be seen in this case by the immediate speeding up of trains and increased traffic. The benefit cannot be otherwise than mutual. The same principle must apply to trade and commerce which are equally matters of two way traffic. Hong Kong supplies South China with the use of a first class free port and first class entrepot trading facilities. Is South China prepared to increase the value of those facilities to her- self by helping Hong Kong to maintain them?

10. Various suggestions have been made to the Commission with the view to an increase in the development and prosperity of the whole economic unit of South China and Hong Kong, but before examining these there is one point which might with advantage be dealt with here. This is the suggestion that Hong Kong should