ENG-1952 — Page 26

REVIEW OF THE YEAR

The question of constitutional development in Hong Kong was fully considered by the Government during the course of the year and in July the Governor went on leave and held discussions on the question with the Secretary of State for the Colonies in London. Sub- sequently, on October 20th, the Secretary of State announced in the House of Commons that he had authorized the Government to increase from two to four the number of elected representatives on the Urban Council, on which there was already a majority of un- officials. Mr. Lyttelton added that after his consulta- tion with the Governor he had decided that the time was inopportune for further constitutional changes of a major character. Two days later, addressing the Legislative Council, the Governor supplemented the Secretary of State's statement with the assurance that he was at all times ready to consider further proposals for constitutional changes provided that they were not of a major character, and a number of such proposals were under consideration at the year's end. The decisions on this question appear to have been generally accepted in Hong Kong as being wise and appropriate for the present time.

The colony continues to bear a heavy share, in the effect on trade, unemployment, and the public revenues, of the cost of the war in Korea, but the decline in trade during the year is due to other causes also. Visible trade during 1952, declined as compared with the pre- ceding year by some 13% in the tonnage handled and 28% in value, but the marked excess of imports over exports which had characterized the closing months of 1951, gradually disappeared and a more balanced rela- tionship took its place. Dealers and merchants alike, faced by an inevitable contraction in the amount of business they could undertake, learned to adjust their

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