FO371-46259 — Page 6

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كسلا

Cutting dated...

TIMES.

27 NOV 1945

FUTURE OF HONG-KONG

.194

TO THE EDITOR OF THE TIMES 10385

Sir, Many of those who have newly arriveď here are surprised and a little perturbed at the lack of publicity which has been given in the home Press to the problems following on the British reoccupation of Hong-kong. It

only be assumed that there is a failure on the part of the nation to realize the vast importance of this colony to the future of Empire trade.

Very baldly, the position would seem to be that, as a consequence of the surrender by the allies of the trade concessions and extra- territorial rights which they held before this war at various important commercial centres in China, Hong-kong is now, with the sole exception of Portuguese Macao, the only remaining territory in China not subject to the legal and commercial jurisdiction of the Chinese Government. For this reason its importance in the south China trade can scarcely be overestimated; particularly to the British Empire, since America appears to have established a virtual de facto political and commercial hegemony in Shanghai, Tientsin, Peiping, and most of the other important trade centres in the north.

One would imagine, therefore, that nothing would have been allowed to stand in the way of the speediest possible recovery of Empire commercial interests here. In fact, we were told that the first supplies of consumer goods to be imported since the British reoccupation at the beginning of September will be of American manufacture, carried in American ships, and supplied by American firms.

It would be foolish to .efuse to recognize the difficulties which have had to be faced, among which the chief, presumably, are the chronic shortage of shipping, lack of stocks of readily exportable goods throughout the Empire, and, above all, the unexpectedly early lend of the war. On the other hand, it is equally indisputable that American commercial interests have already re-established themselves effectively in the colony, whereas ours have not, and that, while there is no hint as yet of imports on any scale from the Empire, American firms have undertaken to deliver the goods."

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The political situation, though more intangible, is none the less urgent. Obviously it would be most unwise to amplify this theme at the moment, but it can safely be said that problems exist here, linking up closely with our whole relationship with China, which call for the most skilled and experienced handling on a very high level indeed. The fact is that there is in the colony, at present, no one with sufficient political authority or standing to make the type of decisions required. This fact is now being realized and commented upon, not only by the European inhabitants but by Chinese themselves-certainly by those on this side of the border.

The immediate solution to this state of affairs would appear to be, first, the appointment of a Minister of State of Cabinet rank, resident in Hong-kong and empowered to take political and economic decisions on behalf of the British home Government; and, secondly,

the immediate provision of full facilities in credit and shipping to any concerns with previous commercial interests in the China trade, together with all the inducements and encouragement we can give them to resume a prosperous and mutually beneficial commerce with China.

Yours sincerely,

J. E. G. HOWARTH, Captain, R.M. Hong-kong, Oct. 30.

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