Sessional_Paper_1935 — Page 89

85

It should, in the opinion of the Conference, be the subject of any policy of industrial co-operation within the Commonwealth to secure the best division of Industrial activities among the several parts of the Commonwealth and the ordered economic development of each part, with a view to ensuring the maximum efficiency and economy of production and distribution.'

It is further the view of the Conference that the precise nature and extent of the co-operation to be achieved in any particular industry must largely depend upon effective consultation between those engaged, or proposing to engage, in that industry in any two or more parts of the Commonwealth.

"The Conference therefore recommends to the various industries in which con- ditions are suitable for the purpose, the desirability of making arrangements for such consultation at the earliest possible date; but it records its belief that such consul- tation, to be fully effective, should be conducted between responsible persons or bodies adequately representative of the industry in each part of the Commonwealth concerned.'

"The Conference further recommends that the Governments concerned facilitate and assist such consultations by all available means."

"The Conference further recommends that, without prejudice to their liberty to determine their own general economic policies, the Governments of the Common- wealth should give sympathetic consideration to any proposals which may be put before them by responsible parties representing similar industrial interests in the parts of the Commonwealth affected. In this connection the Conference would draw attention to the importance of taking into consideration the interests of other parts of the Commonwealth which might be affected by such proposals.'

14. In the agreement between the United Kingdom and Canada it was agreed that Hong Kong should afford Canada a preference of 20% on Motor Cars. It is not clear that whether Canada affords Hong Kong any effective preference in ex- change for this. (Ottawa Conference Blue Book, Art. 19-page 22, and schedules E. and F.)

In the agreement between the United Kingdom and Australia it was agreed that Hong Kong should afford Australia a preference on Brandy.

It is not clear whether any effective preferences are accorded to Hong Kong by Australia except in regard to ships. (Ottawa Conference Blue Book, Art. 15- page 45, and schedules F. and G.) Even in regard to ships the effectiveness is doubtful.

In the agreement between New Zealand and the United Kingdom there appears to be no arrangement affording any effective preferences between Hong Kong and New Zealand.

The above paragraph also applies to the agreements between the United King- dom and South Africa, Newfoundland and India.

In the agreement between the United Kingdom and Southern Rhodesia it was provided that Hong Kong should afford a preference to Southern Rhodesia tobacco. There appears to be no arrangement affording any effective preference to Hong Kong.

15. In all these agreements there is provision to the effect that preference afforded by Hong Kong to one part of the Empire shall be accorded to all other parts of the Empire.

16. While the natural markets for Hong Kong manufactures are the adjacent countries, such as China, The Netherlands East Indies, French Indo-China, the Philippines, etc., the policy of national economic sufficiency adopted in those coun- tries resulting in high protective tariffs, either excludes Hong Kong or affords it pre- carious, unreliable, and dwindling markets.