ENG-1948 — Page 48

COMMERCE

Chapter 5

Hong Kong produces relatively little within its own borders compared with the vast quantities of products from other lands which are brought here for storage, sale and transhipment and which have made the Colony one of the world's greatest international marts and the leading entrepôt for the Far East generally.

The Colony enjoyed another boom year in trade during 1948, the total value of import and export trade exceeding £228.7 millions sterling as against 172.9 millions sterling in 1947, an increase of approximately 32%. The total value of imports of merchandise was over HK.$2,000 millions as against about HK$1,500 millions in 1947, an increase of 34%; the total value of exports was over HK$1,500 millions as against HK.$1,200 millions in 1947, an increase of approximately 30%.

It has not been possible to satisfy the demand for consumer goods, which has existed in the Far East since the close of the war, and the high level of productivity prevailing in the industrial countries has maintained a steady and effective demand for the raw materials of the Far East. Throughout the year, there has been an influx of capital from China to Hong Kong, no doubt attracted by the more stable political conditions existing here, and while much of this has continued to exist in liquid form, some of it has sought an outlet in investment in new building construction both domestic and industrial, and in new equipment for factories already established.

At the beginning of the year there were heavy imports, a large proportion of which had originally been destined for China but which could not gain entry into that country because of import restrictions, and these goods were diverted to Hong Kong for storage and ultimate disposal. Consequently, Hong Kong in the earlier months of the year had an over-bought position in com- modities which led to a fall in prices and a small recession in trade in the middle of the year. Toward the end of the year an op-

36