The-Hong-Kong-Weekly-Press-1896-07-16 — Page 13

Hongkong Weekly Press AND China Overland Trade Report All

Jaly 18; 1896. |

CHINA OVERLAND TRADE REPORT:

success. These artioles were represented by hosiery, lamps, paper, umbrellas, rubber shoes, soaps, biscuits, beer, locks, files, cutlery, etc., in which Germany and Japan are the principal competitors with England.

- to add one unofficial member to the unofficial bench. Who the latter should be and what special interest, if any, he should represent, Eleave to the Government to determine.

· Famay÷observe, however, that the Chinese community is the element which is least 5.-There has been a serious falling off in represented while it is also far the most the imports of metals from Great Britain, not numerous, and that I should regard as valuable ably in that of yellow metal, which formerly was any step which tended to attach them more éxclusively imported from thence. It is estimated closely to the British connection. and to in- that only about half the import of this metal crease their practical interest in public affairs. now comes from British makers, the inferior 6As regards the second point, namely, German metal being greatly aided by the lower whether or not an unofficial element should be rate of freight payable from German ports. introduced into the Executive Council, I would The same remarks apply to the trade in bar observe that, whilst most of the larger Crown iron, nail rod, and scrap iron, most of which is colonies possess one or more Municipal Councils, now imported from Belgium, the productions subordinate to the Colonial Government, in of which country are helped by cheaper cost of Hongkong there is no such institution. More- production and lower freights from Autwerp. ever, it seems impracticable to alter this state Pig lead, which 'formerly was imported from of things, for this reason among others: that England and Germany, now comes almost ex- the colony and the municipality would be inclusively from Australia on account of lower great measure co-extensive, and it would be cost of production. almost impossible to draw the line between colonial and municipal matters.

This being so, in my opinion the most practical course is to recognise that the Colonial Govern ment is discharging municipal duties, and that on that account representatives of the citizens may fairly be given a place on the Executive. 7-I therefore propose that the Executive Council shall in future include two unofficial membors to be selected at the discretion of the Governor. It is obviously desirable that they should, as a rule, be chosen from among the anofficial members of the Legislative Council. and the choice should, and no doubt will be, inspired by consideration of personal merit, and have no reference to the particular class or race to which the persons chosen belong.

18.-You will receive in duo course amended Royal Instructions and in the meantime this despatch may be made public, with an intimation that the subject has been considered from every point of view and that my decision is to be regarded as final.-I have the honour to be, sir, your most obedient, humble servant,

J. CHAMBERLAIN. Governor Sir W. Robinson, K.C.M.G.. ac.. &c.

GOODS.

The Committee are conscious it may be objected to the foregoing paragraph that a portion of the evidence does not bear out the statement that dead weight cargo shipped direct from Great Britain arrives here at a disad- vantage in freight compared with that shipped from Continental ports. The Committee were constrained, nevertheless, to accept the balance of evidence, which unmistakeably points to the conclusion arrived at; and, to more clearly elucidate the point, some tabulated examples of actual shipments have been obtained.

6-The trade in arms and ammunition and gunpowder is monopolised by Continental manu- facturers, owing to the much cheaper prices at which they can lay them down on this market.

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In considering this phase of the subject question seems to arise how far the Imperial Government would be justified in requiring the Conference s modification of their traiff fore continuing a subsidy or other suppor any shipping company which is a party to compact that places British manufacturers at a disadvantage with foreign rivals.

10.-The Committee, moreover, "feel bound to record their conviction that several of the witnesses were indisposed to speak freely on this subject of the Shipping Conference; and they are of opinion that it is a question of such paramount importance to British trade that it might fittingly form the subject of a searching investigation on the part of the home Govern ment.

11.-The Committee are satisfied that, apart from this preference to foreign cargo, shown by Conference steamers, the competition en countere by British goods is for the most part a fair business competition. There are occa sional infringements of British trade marks and more frequent imitations of British goods by Continental makers, but in the majority of cases the imitation is sold as such on its merita,- and in some instances the foreign producers strike ont new lines for themselves, and from small beginnings evolve a considerable trade. While the British merchant or agent in Hong- kong appears to be well on the alert, and to very efficiently represent the home manufacturer. the latter seems too often reluctant to alter bis styles and methods, does not care to make present sacrifice for future profit, and is apt to neglect small openings for a new trade. This is in marked contrast to the untiring efforts of foreign makers to study the market and adapt their goods to the requirements of the consumer.

12.-Turning to a consideration of the transit trade of the colony, which the Committee take to mean the transhipment of goods here for the neighbouring countries. Japan, Siam, Into- China, the Philippines, Netherlands Indies, etc., this trade exhibits a tendency to increase ou the whole, with the present exception of that with Indo-Chins, which has latterly shown a decline. This decline is due to the high pre- ferential duties recently imposed by our French neighbours, the effects of which are visible in the falling off in the export of yarns and British manufactured goods to Saigon and Tonkin..

7. Certain branches of trade, such as those in wire nails and window glass, have always been in Belgian hauds, the prices charged being apparently beyond the competition of all other producers. Not so, however, the trade in candles, which has been completely wrested from England by Belgian makers, this being to a great extent due to superior packing.

8.The competition of Japan is only just commencing, but promises to prove serious later on. Already the Japanese have secured THE DISPLACEMENT OF BRITISH almost a monopoly of the trade in cotton waste, washing soda, and sulphuric acid; they are competing in cotton goods, paper, ship's lamps,. 13.-When the provisions of the new treaty' and cheap substitutes for cretonnes, blankets, with Japan come into force a most serions towels, soaps, etc. Among other items, they decline is expected to ensue in the export hence are exporting really well made cotton half hose of refined sugar to that country_under the fifty per cent. below the cost of similar goods revised tariff, and it is feared that this, the from Germany; and their cement, though in-chief industry of the colony, which has ferior in quality, is cheaper than any European cement that can be imported, competing even with the local product, which has the advantage of paying no freight or marine insurance.

9.-The causes to which the displacement of British goods in this market are to be assigned may be briefly stated :-

THE Shipping CONFERENCE ONE OF THE CAUSES.

The following report was laid on the table of the Legislative Council on 8th July :

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1.-The Committee, appointed by His Ex- cellency the Governor, in response to au inquiry from the Secretary of State asking whether there had been any and what displacement of British goods in this market, held their first sitting on the 29th February, and have since met thirteen times and taken the evidence of fourteen witnesses, which evidence has been supplemented by information gathered by the Secretary. A careful consideration of the whole has enabled the Committee to arrive at the conclusions given herennder.

The

2-At the outset the Committee were con- fronted with the difficulty that Hongkong being a free port, precise returns of trade can- not be made up in this colony owing to the absence of any statistics of imports and exports (with the single exception of opium). Committee have therefere limited their investi- gations to ascertaining where there has been displacement of British goods in this market by foreign manufactures, to what extent this displacement has been effected, and to what

canses it has been due.

3-It is apparent from the evidence that the displacement of British goods has been going on steadily for some years, but it has not been on a strikingly large scale nor have many great starles been very seriously affected. There are

tanicus, br wever, in which the British manu- facture babeen entirely ousted by foreign goods, as in the cases of Llama braids and aniline dyes, while others, such as Spanish stripes and broad cloths, have been in great measure replaced by similar goods imported from Germany.

4.In other cases, again, there have been attempts to cut into British trade in smaller wares, sometimes by foreign imitations, with, however, often only a qualified or temporary

J-Bower cost of production of rival for-

eign goods. 2.-Disinclination of British manufacturers

to study taste of consumer. 3-The steadily falling value of silver

since 1873,

4.-Lower freights outwards from foreign

as compared with British ports. 5. Cheaper railway transit to foreign

ports of shipment.

The last two named causes apply more espe- cially to metals and heavy goods, and No. 4, the Committee regret to say, is due to the aetion of the Shipping Conference (consisting chiefly of British steamship owners), which, while maintaining freights from British ports, carry cargo at a much lower rate from Continental and American ports, thus giving foreign manu- factures a virtual subsidy in their competition with British products.

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already been very adversely affected, may perhaps be permanently injured. Had the Hongkong Government been consulted before the alteration of the tariff was decided upon, it is probable some adjustment of the duties fess unfavourable to this colony might have been arrived at, and this important in- dustry saved the check it must presently meet.

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14. Whilst the words the Transit trade of Hongkong" are perhaps not intended to directly include the conduct of trade with the interior of China, yet the Committee feel it within the scope of their inquiry to point out here that this transit trade would be largely benefited and increased, were the transit pass system allowed by the native authorities in South China to work in accordance with t 10 treaty requirements. Unfortunately, ever since the signature of the Treaty of Tientsin. Article XXVIII. of which confers this transit pass privilege on British subjects, the officials in South China have stead fastly and persistently sought to render it a dead letter, and so far their success has been most complete. If the transit pass system” bé enforced, and the inland waterways of the Two Kwang provinces be opened to foreign frade and steamer navigation, as the result of negotiations now proceeding, there is every reason to believe that a marked increase in British trade will soon be apparent.

In this connection the Committee wish to make special reference to the advantages con- ferred on American cotton piece goods in the China market by the rates of freight charged 15.-Another subject not perhaps strictly by the Conference steamers from New York to within the scope of the present inquiry but Hongkong and Shanghai, which average from which has come before the Committee inc 258. to 30s. per ton as compared with 57s. 6d. dentally, and is closely associated with the from London and Liverpool outwards. The British shipping trade, is that of the impedi same remarks apply to the shipment of machi-ments placed in the way of British ship. ob nery from the United States to China, the ing their fair share of the Chinese freight for which is about 40 per cent. lower traffic at certain of the neighbourin

This is due to their having to confor than that from British ports.

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