ENG-1950 — Page 42

V.

COMMERCE.

During 1950 the Colony's trading activities in terms of value increased greatly, being $7,503 million compared with $5,068 million for 1949. This was the highest figure ever recorded in the trade history of the Colony. Records were set up successively in July, August, September, October and November, the last being HK$869.9 million, the highest figure ever recorded for any one month.

These figures do not however represent the true volume of visible trade for purposes of comparison since very considerable price increases were recorded on many items during the year owing to the rise in the cost of imported raw materials and to speculation in the Colony with regard to materials for which there was a heavy demand from China.

Another noteworthy feature of Hong Kong's trade during the year under review was the considerable favourable balance of trade with China which amounted to the figure of $603 million (£37.6 million) compared with the previous year's unfavourable balance of $8 million. In the main this was due to the large-scale buying activities of the Peking Government's trading agencies which had the further effect of raising the Colony's percentage of trade with China to about 30% of the total trade, compared with under 20% in 1949. The trade pattern between the two countries thus reverted more closely to the pre-war pattern. Compared with the previous year imports from China increased by 44.7% whilst exports increased by almost 150%. Total trade with China amounted to $2,319 million (£144.9 million) which was an increase of 97%. For trading on such a large scale with China the Colony came in for very considerable criticism from various quarters, but it should be noted that in accordance with Imperial policy certain restrictions on exports of direct strategic and military importance were imposed during the year, some 200 items including petroleum being prohibited from export in August and another 100 in December. Furthermore other Far Eastern countries also trade extensively with China, but never- theless have not been criticised so severely. Various countries imposed restrictions on the export of certain materials to China, and Hong Kong, in view of its geographical position, was invariably included. In December the United States Government placed a complete embargo on the export of goods to China, Hong Kong and Macao. The full effect of these trade restrictions has yet to be seen but there is no doubt that the American embargo in particular was

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