V
COMMERCE
In 1951 the total value of the Colony's trade amounted to $9,303m. (£581m.) as compared with $7,503m. (£469m.) in 1950. This large apparent increase in the total value of trade is however some- what misleading and does not reflect with any accuracy Hong Kong's general economic position, the value figures being considerably inflated by rising world prices and by industrial concerns in the Colony being obliged to purchase raw material supplies from abnormal sources. a volume basis the Colony's trade was over a million tons less than in the preceding year, cargo discharged and loaded by ocean and river vessels being 4,889,066 tons in 1951 compared with 6,307,646 tons in 1950.
On
The Colony's trading position during the year deteriorated considerably mainly as a result of the Colony's export controls over The first of these controls were imposed in July strategic materials. 1950 and were followed in December of that year by the American The Hong embargo on shipments to China, Hong Kong and Macao. Kong Government's restrictions were periodically augmented and by arrangement with H.M. Government were considerably tightened in June 1951 when a wide system of import licensing was introduced as a result of the United Nations Resolution of 18th May 1951 concerning The American embargo chiefly shipments of strategic goods to China. affected the Colony's industries.
There was a progressive decline in the value of imports and exports from $1,091m. in March to $592m. in September, and from May onwards imports exceeded exports. This was due in part to goods coming forward from alternative sources to make good shortages created by the embargo, and in part to the inability of local merchants to cancel orders placed early in the year before the United Nations Resolution on trade with China. Many of these goods are now frozen in Hong Kong by the new trade control regulations. Considerable amounts of trading capital are tied up in goods that can only gradually be absorbed locally or re-exported to approved destinations at reduced prices.
The table on page 46 illustrates the movement of trade throughout the year.
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