工商業管理處年報 Commerce and Industry Department Annaul Report 1951-1952

1 1 MAR 1953

DIEL ET MON DROIT

HONG KONG

ANNUAL

DEPARTMENTAL

REPORT

1951-52

RSITY OF HONG

SAMENTIL

LIBRARY

KONG

DIRECTOR OF

COMMERCE &

INDUSTRY

PRICE: $5.50

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF

COMMERCE AND INDUSTRY

FOR THE

FINANCIAL YEAR 1951-2

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER.

HONG KONG.

·86354

27 April 1957

CONTENTS

Paragraphs

1 - 10

11 - 20

21 - 22

...

23 - 24

1. INTRODUCTION

II. ECONOMIC DIVISION

(i) The Colony's Trade

(ii) Industry

...

(iii) Import and Export Control

(iv) Statistics

III. REVENUE DIVISION

(i) Revenue

(ii) Seizures

(iii) General ..

IV. SUPPLIES DIVISION

(i) General ...

(ii) Rice

(iii) Flour

(iv) Sugar..

(v) Frozen Meat

(vi) Coal and Coke (vii) Firewood

...

(viii) Japanese Trade

(ix) Accounts.

V. LEGISLATION

...

VI. APPENDICES I to XXIII.

...

•

...

25 - 28

...

30 - 32

33 - 36

46 47

49 50

Appendix

No.

II.

III.

LIST OF APPENDICES

Comparative Table of Total Values of Imports During April, 1950/March, 1951 and April, 1951/March, 1952 Comparative Table of Total Values of Exports During April, 1950/March, 1951 and April, 1951/March, 1952

Comparison of Volume of Trade, Hong Kong, 1951/52 with 1950/51 and 1949/50 (Moving Average, 3 months)

Page

IV.

Volume of Trade, Hong Kong, Imports and

Exports in $, April, 1951, to March, 1952 23

Volume of Trade, Hong Kong, Imports and Exports in $, April, 1951, to March, 1952 (Moving Average, 3 months)

VI.

VII.

VIII.

Statistics of Locally Manufactured Pro- ducts exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951, to 31st

March, 1952

Comparative Table showing number of Essential Supplies Certificates issued for the period ended 31st March, 1952.

Number of Import Licences Issued During the period from 1st April, 1951, to 31st March, 1952...

25 - 30

32 - 34

(ii)

LIST OF APPENDICES-Contd.

Appendix

No.

Page

IX.

Number of Export Licences Issued During the period from 1st April, 1951, to 31st March, 1952

XI.

XII.

XIII.

XIV.

XV.

XVI.

XVII.

Comparative Table of Numbers of Mani- fests Received During April, 1950/March, 1951, and April, 1951/March, 1952...

Comparative Tables of Numbers of De- clarations Received in April, 1950/March, 1951, and April, 1951/March, 1952...

Statement of Revenue for the Period from

1st April, 1951, to 31st March, 1952

Return of Liquor Duty collected from 1st

April, 1951, to 31st March, 1952

Return of Liquor Duty collected from 1st

April, 1951, to 31st March, 1952

Return of Liquor Licences Issued and Summary of Revenue derived from Liquor for the period from 1st April, 1951, to 31st March, 1952

Return of Tobacco Licences Issued and Summary of Revenue derived from Tobacco for the period from 1st April, 1951, to 31st March, 1952

Return of Licences Issued and Revenue derived from Hydrocarbon Oils for the period from 1st April, 1951, to 31st March, 1952

38 - 39

41 - 42

...

(iii)

Appendix

No.

LIST OF APPENDICES-Contd.

Page

XIX.

XVIII. Return of Licences Issued and Revenue derived from Toilet Preparations and Proprietary Medicines for the period from 1st April, 1951, to 31st March, 1952 45

Return of Licences Issued and Revenue derived from Table Waters for the period from 1st April, 1951, to 31st March, 1952 46

Return of Tally Clerk Licences Issued from

1st April, 1951, to 31st March, 1952... 46

Major Seizures for the period from 1st

April, 1951, to 31st March, 1952.

Prosecutions by Department of Commerce & Industry in Hong Kong, Kowloon & New Territories ...

XX.

XXI.

XXII.

...

47 - 50

XXIII. Summarized Accounts, Supplies Division ... 53

(iv)

I-INTRODUCTION

1. The salient feature of the past year was the increasing and unavoidable degree of restrictions on trade which had to be imposed as a result of the war in Korea. 'In terms of tonnage the volume of trade was already declining at the end of 1951 but this factor tended to be overlooked because of the striking rise in commodity prices which followed the outbreak of fighting in Korea. In fact, while the value figures for 1951 showed that the Colony's trade was up by $1,800.1 millions over the 1950 total of $7,503.2 millions, the volume figures showed exactly the opposite, being 1,238,898 tons less than 1950 figure of 7,084,384 tons. Substantial additions to the list of prohibited exports were made in March, 1951, and sweeping powers to prevent smuggling were taken. On 25th June, 1951, Hong Kong in accordance with the United Nations Resolution of 18th May, 1951, introduced import controls over a wide range of strategic materials and further extended the existing export controls to cover the same range of commodities. Merchants had already suffered severe losses as a result of the ruthless embargo im- posed in December, 1950, by the United States Government on shipments to China, including also shipments to Hong Kong and Macao, and industrialists suddenly found themselves short of many raw materials customarily obtained from America. When the new import and export controls were imposed in Hong Kong, merchants' difficulties were increased because they were not allowed to take delivery of their cargoes until they could prove that they were for local consumption or intended for re-export to an acceptable destination. The position was further aggravated by the fact that there had been a shortage of shipping space for goods from Europe and it was not until the summer and autumn of 1951 that shipments came forward against orders placed at the beginning of the year. Cancellation

- 1 -

of orders often proved impossible and many importers found themselves saddled with goods which they were unable to dis- pose of. The marked excess of imports over exports and the fact that merchants were unable to deliver their goods to the dealers on whose behalf they had placed their orders caused considerable dislocation to the Colony's economy and resulted in the tying up of large amounts of capital.

2. Prolonged negotiations were necessary with the United States authorities to obtain release of offloaded cargoes and to convince them of the effectiveness of Hong Kong's controls. A system of certificates guaranteeing that certain goods were genuinely required for use in Hong Kong and would not be re-exported was introduced at the end of 1950 to obtain the release from the United States of materials urgently required for Hong Kong industries. This system was extended to cover strategic imports from all countries when the June import-export controls were introduced and has proved of the utmost benefit in ensuring continued supplies of essential materials. The original system only covered supplies for endusers but was later extended to goods such as motor and truck tyres, car batteries, electrical instruments, building materials and other goods normally held in stock by sole agents and distributed through dealers. The controlled sales system, devised on the advice of the Trade Advisory Committee assisted, where necessary, by technical experts in various branches of business, provided a means whereby the satisfactory disposal of goods not lending themselves to enduse control could be achieved. The machinery is complex and imposes a great deal of work upon importer, distributor and the Department alike but it has justified itself by keeping legitimate local trade in such articles moving. By the end of March, 1952, Hong Kong's controls over strategic materials were generally accepted as effective by most foreign Governments and difficulties of procurement of essential raw materials had been reduced to a minimum.

3. To counterbalance the reduction in the Colony's trade caused by these controls increased efforts were made to promote the sales of Hong Kong products overseas and to establish new markets. Hong Kong was represented at the E.C.A.F.E. Trade Promotion Conference at Singapore in October 1951 by a de- legation of businessmen under the leadership of an Assistant Director of the Department. An exhibition of Hong Kong products organized by the Chinese Manufacturers Union in Singapore at the same time as the conference provided a most successful practical example of trade promotion. The ninth Annual Exhibition of Hong Kong Products also organized by the Chinese Manufacturers Union was opened by the Right Honourable Oliver Lyttleton M.P., P.C., Secretary of State for the Colonies, whose address at the opening ceremony was high- lighted by his assertion of the confidence of His Majesty's Government in the future of Hong Kong and in its ability to overcome the economic difficulties being experienced. Govern- ment assistance in the development of trade was exemplified by the creation of a new post of Trade Promotion Officer.

The

4. Many of the initial difficulties caused by the American embargo were due in no small measure to the inadequacy of Hong Kong's trade statistics. A notable step to remedy this deficiency was taken on 1st January, 1952, when the United Nations Standard Trade Classification was adopted, Hong Kong being the second Colony to change over to the new system. Trade Returns were printed by the Government Printing De- partment in a new form which enabled them to appear in the month following that to which they related. At the same time the Department of Statistics was absorbed into the Department of Commerce and Industry and was reorganized as a Statistical Office.

5. The cessation of rice imports from China threw a strain on the resources of the Supplies Division which was obliged in addition to procurement from traditional suppliers

Con-

such as Thailand and Indo-China to purchase rice from as far afield as Italy and there were indications that purchases from marginal sources would be necessary throughout 1952. gestion and strikes at Calcutta made coal purchases difficult but the cessation of firewood shipments from China was soon remedied by increased supplies from British North Borneo.

6. Trade with Japan was conducted under Open Account arrangements by the Supplies Division until the beginning of September, 1951, when Hong Kong was included in the Sterling Area Payments Agreement. The result of the transfer was, as anticipated, a decline in exports to Japan financed through Hong Kong and in the spring of 1952 measures had to be taken at the request of Her Majesty's Government to limit the Colony's adverse balance with Japan by temporary restrictions on imports.

7. Japanese competition made itself increasingly felt throughout the year and Hong Kong manufacturers were at a disadvantage in many instances because they had to purchase their raw materials from more expensive sources than those available to Japan. The textile industry in particular suffered through the refusal of the United States Government to release American cotton and, although this problem was eventually resolved, by the time the U.S. Government was prepared to re- sume shipments, cotton prices elsewhere had fallen heavily and the advantages of purchase from America had disappeared.

8. Unsettled conditions and the administration of the new trade controls threw a heavy burden upon the whole staff of the Department. As was to be expected, there was an increase in attempts at smuggling which called for the utmost vigilance on the part of the small Revenue staff, who received the fullest assistance and cooperation from the Police and the Royal Navy. The provision of two additional new launches at the end of the year was of considerable value. The major shipping and go- down companies cooperated admirably in the administration of

- 4-

the new controls and as a result of the excellent assistance rendered by the unofficial members of the Trade Advisory Committee many initial defects in the trade control machinery were brought to light and quickly remedied.

9. The year was one of difficulty and strain and adjust- ment was at times a slow and painful process. Trade with China which had been severely curtailed by the restrictions on export was further reduced to a mere trickle while the Chinese People's Government's anti-corruption campaign was in progress during the spring of 1952. Yet in spite of these setbacks which coincided with a world-wide business recession, the Colony's economy proved remarkably resilient and it was with a feeling of cautious optimism that Hong Kong businessmen faced the summer of 1952.

10. A tribute must be paid to the staff of the Department of Commerce and Industry for the manner in which they one and all faced up to the new and complex problems which con- fronted them. They had to work long hours and were under continuous pressure for long periods. Some delays were inevitable until defects in the machinery were brought to light but on the whole the Department gave speedy service to the public, and although many of the control measures which had to be taken were irksome and caused losses and hardship, re- lations with individual members of the public never deteriorated and a satisfactory degree of cooperation was received.

II-ECONOMIC DIVISION

(i) The Colony's Trade

11. Comparative figures of monthly imports and exports for April, 1951, to March, 1952, are to be found in Appendices I and II, but in the remarks which follow, the period January- December, 1951, as covered by the annual Trade Returns, is re- ferred to.

12. The value-figures for the year showed a further increase compared with the preceding year of 1950. Imports at $4,870.3 million were up by 28:6% and exports at $4,433.0 million up by 19.3%, the total volume of visible trade at $9,303.3 million having increased by 24.0%. Although the value-figure for the year was the highest ever recorded, it was considerably inflated by the steep rise in commodity prices following the outbreak of hostilities in Korea and tonnage figures actually fell from 7,084,384 long tons in 1950 to 5,845,486 long tons in 1951. All the high value figures were recorded for the early months of the year and as the progressively severe controls imposed over imports and exports of a strategic nature took effect, the monthly value figures for the latter part of the year were below those for the corresponding months of 1950. A feature of the period from July to the end of the year was the marked excess of imports over exports, which resulted in the tying up of considerable sums of capital.

13. Trade with China was greatly affected by the restrictions imposed. Imports were considerably reduced from July to October, although over the year as a whole they amounted to $863.1 million or 0.6% more than 1950. Exports at $1,603.8 million showed an increase of 9.8% over the 1950 figure but $1,151.2 million of these exports by value were made during the first six months and from August onwards there was a progressive decline until December when exports for the month amounted to a mere $51.8 million.

14. The United Kingdom's share of the Colony's trade for 1951 as compared with the preceding year increased from 10.7% to 12.7% on imports and from 4.5% to 4.8% on exports. In actual figures imports from the United Kingdom were valued at $619.1 million as against $404.7 million and exports at $214.6 million as against $168.3 million.

15. Imports from the U.S.A. fell from $655.3 million in 1950 to $373.5 million in 1951 and exports from $308.7 million to $162.5 million, a decrease of over 40% in both figures. The decline was mainly due to restrictions on imports and exports imposed by the United States Government since December, 1950. Exports remained at a low level throughout the year but imports increased in the middle of the year, as offloaded cargoes were released and thereafter essential supplies for the Colony's in- dustries began to come forward in greater quantities.

16. Trade with Japan for the year showed considerable improvement as compared with the preceding year; an increase of 70.6% on imports and an increase of 59.5% on exports being recorded.

17. Imports from Indonesia increased from $80.1 million to $90.3 million but exports rose sharply from $122.7 million to $224.8 million, an increase of nearly 100%. There are in- dications that export trade with this country will continue to develop.

18. Due to the continuation of hostilities in Korea trade with North Korea during 1951 has not revived.

19. According to the 1951 value-figures Hong Kong's principal sources of supply in order of importance were China, United Kingdom, Malaya, Japan, U.S.A., Germany, India, Thailand, Pakistan, Switzerland, Italy, Holland, France, Bel- gium and Macao. Her chief markets also in order of im- portance were China, Malaya, Indonesia, Macao, United Kingdom, Japan, Pakistan, U.S.A. and Formosa.

20. The principal items of imports for 1951 in order of value (figures in millions of dollars) were: -Textile fabrics and small wares ($428.8); Chemical elements and compounds; pharmaceutical products ($405.1); rubber and rubber manu- factures ($353.8); textile materials, raw or simply prepared

($312.5); miscellaneous manufactured articles ($246.0); iron and steel ($211.0); miscellaneous crude or simply prepared pro- ducts ($183.6); pulp, paper and cardboard ($183.1); dyeing, tanning and colouring substances ($167.6); cereals ($165.5); animal and vegetable oils ($161.8); products for heating, light- ing and power, lubricants and related products ($156.7); vegetables, roots and tubers, chiefly used for human food and their preparations ($131.1); machinery, apparatus and ap- pliances other than electrical ($118.7); yarns and threads ($111.0); and sugar and sugar confectionery ($101.3). Principal items of exports were: -textile fabrics and small wares ($432.0); chemical elements and compounds; pharma- ceutical products ($407.2); rubber and rubber manufactures ($350.6); miscellaneous manufactured articles ($318.6); yarns and threads ($285.0); miscellaneous crude or simply prepared products ($219.0); clothing and underwear of textile materials; hats of all materials ($206.9); iron and steel ($203.9); manu- factures of base metals ($182.3); dyeing, tanning and colouring substances ($180.1); pulp, paper and cardboard ($164.7); animal and vegetable oils ($142.9); and vegetables, roots and tubers chiefly used for human food and their preparation ($129.2).

(ii) Industry

21. A total of 10,758 Imperial Preference Certificates and 29,151 Certificates of Origin were issued. These represent a decline and a substantial increase of 1,913 and 12,308 respec- tively on the corresponding figures for the preceding year. The total value of locally manufactured goods covered by these Certificates was $303,424,934, of which figure the six outstanding products in exportable value were cotton yarn ($115,236,533), cotton piecegoods ($38,292,960), flashlights ($16,638,075), rubber shoes ($15,705,962), shirts, suits, clothing ($14,208,865), knitted wear ($12,996,892). The individual commodities by quantity and value are enumerated in Appendix VI.

22. Hong Kong again participated in the Commonwealth Section of the British Industries Fair held at Earls Court, London, from 30th April to 11th May, 1951, the products of approximately 70 manufacturers being exhibited.

(iii) Import and Export Control

23. Mention has been made in paragraph 2 of the Intro- duction to this Report of the system introduced to guarantee Hong Kong's needs in respect of essential raw materials. The system of Essential Supplies Certificates was first introduced in December, 1950, and up to 31st March, 1952, 17,359 such certificates had been issued. Appendix VII gives the number of certificates issued in respect of the various supplying countries.

24. During the period under review there was a consider- able increase in the number of Import and Export Licences issued, 76,670 being for Imports and 114,156 for Exports.

(iv) Statistics

25. The Department of Statistics was closed on 31st December, 1951, and the work of that Department was taken over by the Statistical Office of the Department of Commerce and Industry from 1st January, 1952.

26. The number of Hollerith cards punched during the year in connexion with Trade Returns was approximately 533,500, a decrease on the total for 1950/51 of approximately 213,500, while approximately 272,000 cards were punched in respect of other statistical services.

27. Throughout the year a monthly statistical Supplement to the Gazette was compiled in consultation with the heads of departments concerned, in which figures relating to economic and other subjects were tabulated and analysed for public in- formation.

28. Statistical data analysed during the year under review included meteorological information coded from weather re- ports, details of traffic accidents, nuisances reported and dealt with in sixty health districts in the urban area, reports on crime, and details of deaths for inclusion in the Mortality Returns. In addition 28 graphs and diagrams were prepared for Annual Departmental Reports.

III-REVENUE DIVISION

(i) Revenue

29. The total net revenue collected during the year was the highest on record. At a figure of $85,549,346.62 it showed an increase of over $5 millions above the previous record in 1950-51. The major source of revenue was duty on tobacco which accounted for $37,860,938.49. The two next important sources were duty on liquor which came to $18,532,061.29 and duty on hydrocarbon oils which totalled $15,281,152.85. The five commodities which are dutiable in Hong Kong produced a return of over $77 millions.

(ii) Seizures

30. A reduced volume of dutiable commodities compared with the previous year was seized. The number of cigarettes fell from 66 millions to 45 millions and Chinese tobacco from 17,800 pounds to 14,300 pounds. Only 3,000 gallons of Chinese liquor were seized compared with the extraordinary amount of 367,000 gallons in 1950-51.

31. On the other hand with the introduction of restrictions on the import and export of specified articles large quantities of a variety of items were confiscated to the Crown. These ranged from over 90,000 gallons of petroleum products and 52 tons of hoop steel to four X-ray sets and 99 military tele- phone sets.

32. During the year 1,148 persons were arrested, of whom 1,121 were convicted. A further 20 absconded and bail was estreated in each case. In addition 2,602 seizures were made in cases where no person was arrested.

33. A new revenue station was opened at Fan Ling cross- roads in September, 1951. This modern building provides offices, stores, resident inspector's quarters, barracks for male and female revenue officers, and general facilities for the revenue staff in the New Territories. Its location is well- suited for examining road and rail traffic crossing the border. The old station in rented accommodation at Sheung Shiu was given up as well as rented quarters for Women Revenue Officers at Taipo.

34. A simple new concrete building was constructed and occupied at Man Kam To in December, 1951. This station controls the main traffic route by road at the border and is manned daily from the main station at Fan Ling.

35. Two new patrol launches of modern design were delivered in the middle of March, 1952. These are welcome additions to the resources of the department in preventing smuggling by sea.

36. Some increases in the establishment became necessary to cope with the additional work imposed on revenue staff as a result of new trade controls. An additional seven Revenue Inspectors and twenty Revenue Officers Class II were authorized to enforce the controls and to man the two new launches.

(i) General

IV-SUPPLIES DIVISION

37. The Department's main trading activities continued to be in respect of rice, sugar, frozen meat, coal and firewood. Stocks of a limited range of other foodstuffs were also maintain- ed. Ration schemes were operated for rice, sugar, butter and

11 -

for part of the year for firewood and coal. Commercial imports of butter, margarine, canned meats, corned beef, bacon and ham, and I.W.A. flour had to be restricted to approved import quotas which were allocated to importers by the Department.

(ii) Rice

38. At the beginning of the year some rice was continuing to come from China and this had a beneficial effect on the price of commercial rice. In June, 1951, the Chinese authorities discontinued the issue of export licences for rice. It was then necessary to encourage further commercial imports of rice from Thailand and to import larger quantities on Government account. In August, 1951, the import regulations were revised to permit all kinds of rice to be imported commercially from Thailand. Prices in the latter half of the year showed a strong tendency to rise, and as Government supplies were cheaper, there was a marked increase in the offtake from Government stocks. By the end of the year, stocks had been reduced to a low level and strenuous efforts were being made to secure delivery of additional supplies.

39. At the end of 1951, 13,698 tons remained to be de- livered out of the 80,000 tons which the Thai Government had contracted to deliver during that year. 9,000 tons of this back- log were eventually added to a further quantity of 72,000 tons which Thailand agreed to supply by September, 1952, at some- what increased prices. In order to meet the increased demand for Government rice, purchases were made from other sources of supply including 20,000 tons from Indo-China, and 11,100 tons from Italy.

40. Rationed rice continued to be distributed through one wholesale agent and a chain of 194 retail shops, and the ration entitlement per person was unchanged at 163 catties per month. In addition, direct issues were made to the Social Welfare Office

and to a number of charitable establishments, and a special ration for heavy workers was issued to firms on the recommen- dations of the Commissioner of Labour. In August, 1951, it was necessary to increase the retail prices of rationed rice by four to five cents a catty for the various grades of whole rice and by three cents a catty for broken rice grades. Prices for rationed rice were maintained at this level for the remainder of the year. Prices of commercial rice fluctuated more sub- stantially, and by the end of the year appeared to have settled down at a level nearly 15 cents per catty above prices ruling at the beginning of the year, and the prices for similar grades of rationed rice. This rising trend was particularly noticeable during the last 5 months of the year, and accounted for the exceptionally heavy issues of Government rice during this period.

41. During the year the shortage of supplies of gunny bags from India continued, and arrangements were maintained to collect second hand gunnies from retail ration shops and to buy new gunnies in Calcutta for delivery to Bangkok to be available to bag the purchases of Thailand rice. At the close of the year arrangements had been made to ensure that adequate supplies would be available and there was some indication that the supply position might ease.

42. Since the general tendency, particularly in the latter half of the year, was for issues of rice to exceed arrivals of new stock, it was not always found possible to utilize fully the space in Government's own godowns. These were, however, pro- fitably operated and by the end of the year the difference be- tween storage charges at current commercial rates and actual costs incurred in maintaining and operating the Government godowns amounted to $195,317 which, together with a sum of $95,803 similarly arrived at in respect of the previous year's operations was written off the sum of $865,000 incurred in the construction of the godowns.

(iii) Flour

43. At the beginning of 1951, a scheme drawn up in cooperation with the Hong Kong General Chamber of Commerce was put into effect whereby the flour trade was returned to commercial channels. A feature of the scheme was that the importing firms which share the Colony's I.W.A. quota under- take to maintain an adequate reserve stock. The scheme operated satisfactorily during the year.

(iv) Sugar

44. The system of individual rationing and of allocations to industrial users which was re-introduced in October 1950, was continued during the year. Considerable competition was met from extra sugar which leaked illegally on to the local market from stocks imported for re-export and which was available at a lower price. At the end of the year stocks were at the high figure of 10,886 tons.

(v) Frozen Meat

45. While local pork continued to be plentiful, the imports of cattle for slaughter were very small indeed. The demand for supplies of frozen meat, imported by Government from Australia and New Zealand, continued to be more than the quota which could be issued for sale, and it was necessary to continue the restriction of sales to ships, as ships stores, in order to ensure that maximum supplies were available for the local population. Towards the end of the year small supplies of frozen meat were

were being imported commercially from Calcutta. A marked increase in retail prices took place towards the end of the year, due partly to the higher prices paid by the Ministry of Food for Australian supplies and partly to the fact that a proportion of the Colony's supplies had to be imported on commercial terms from New Zealand.

(vi) Coal and Coke

46. Coal and coke continued under Government procure- ment during the year, except for supplies imported by public utility companies. Imports on Government account totalled 157,334 tons, while 80,143 tons were imported by utility com- panies. The sources of supply for Government imports were

as follows:

India

...

Indonesia

China

•

...

United Kingdom

South Africa

...

Japan

Coal

Coke

114,469 tons

1,429 tons

32,963

7,977

159

267

100

A total of 164,753 tons of coal and 2,686 tons of coke was de-

livered to consumers.

47. Revised selling prices, which brought the price of Indian coal ex yard to $139 per ton, were introduced on 9th April, 1951, in view of the level which freight rates had reached at that time. Freight rates which were then around 90/- per ton increased in June and July to 125/-, but then began to decrease. It was decided not to increase or decrease selling prices as freight rates fluctuated, but to stabilize the prices, and it proved possible to maintain prices unchanged throughout the year. In the latter part of the year reliance had to be placed almost entirely on supplies from Calcutta, but offers of supplies from Australia were under consideration.

(vii) Firewood

48. The Department continued to maintain stocks of fire- wood for release in times of local shortage of commercial supplies. Rationing which was introduced in February, 1951, owing to the cessation of imports of firewood from China, was continued until May, 1951, by which time adequate commercial supplies were beginning to come in from other sources and the retail price had fallen from $20 to $12 per picul. In December, 1951, a further prohibition of exports from South China again resulted in a restriction of local supplies and a rise in the retail price, and issues from Government stocks on a rationed basis. were resumed. By the end of the year retail prices had re- turned to normal levels and ample commercial supplies were coming in. During the last three months of the year 15,000 tons of firewood was issued from Government stocks.

(viii) Japanese Trade

49. The adverse effects on both imports and exports caused by Japan's restriction of exports of strategic materials and China's retaliatory ban on exports to Japan continued to reduce the volume of transactions through the Open Account. In September, 1951, H.M.G. negotiated an extension of the Sterling Payments Agreement with Japan, which provided amongst other things for Hong Kong's trade with Japan to be financed in sterling. From this time transactions through the Hong Kong/Japan Open Account were restricted to the implementa- tion of existing contracts and letters of authority. The account was formally closed on 31st March, 1951, but the balance remains to be settled with Japan. Despite these circumstances, exports totalling US$27,085,061 and imports amounting to US$20,076,133 were financed through the Open Account during the year.

50. In recording the closure of this account it is interesting to note the very impressive volume of business transacted through the Hong Kong/Japan Open Account. The annual exports and imports to and from Japan were as follows:

1946/7 1947/8

•

1948/9

1949/50

1950/1

1951/2

Exports

Imports

US$ 2,768,000 US$ 5,704,000

5,733,000

4,523,000

16,313,000

19,160,000

30,310,000

22,745,000

44,491,000

69,123,000

27,085,000

20,076,000

US$126,700,000

US$141,331,000

(ix) Accounts

51. The progress made in the previous year in establishing a smoothly operating accounting system was maintained, and full accounts were produced monthly for administrative purposes in addition to the annual accounts prepared for audit and publication.

52. The following table shows the comparative turnover for 1950/51 and 1951/52 to the nearest million dollars:

Japan Trade

Food

Fuel

Marketing

Industry

1950/51

$667,000,000

1951/52

$323,000,000

123,000,000

184,000,000

19,000,000

25,000,000

1,000,000

15,000,000

$825,000,000

$532,000,000

53. The Report of the Auditors, Messrs. Lowe, Bingham & Matthews, the Consolidated Balance Sheet and the Statements of Accounts of the various Sections are contained in Appendix XXIII.

V-LEGISLATION

54. The following amendments and additions to existing ordinances and new ordinances were passed during the year:

G.N. No. A 75 of 1951-Amendments to the Dutiable Com-

modities Regulations.

G.N. No. A 76 of 1951-The Emergency (Exportation) (Miscellaneous Provisions Re- gulations, 1951.

G.N. No. A 93 of 1951-The Regulation of Imports and Exports Ordinance, 1922, section

3 and 4 and the Interpretation Ordinance, 1950, section 14A.

G.N. No. A 98 of 1951-Dutiable Commodities Ordinance— Amendments to the Regulations.

G.N. No. A103 of 1951-Exportation (Prohibition) (Speci-

fied Articles) Order.

G.N. No. A104 of 1951-Importation (Prohibilition) (Speci-

fied Articles) Order.

G.N. No. A191 of 1951-The Importation and Exportation

Ordinance-Scale of fees.

G.N. No. A223 of 1951-Registration (Imports & Exports)

(Amendment) Regulations.

G.N. No. A 25 of 1952-The Emergency (Essential Sup-

plies) Regulations, 1952.

G.N. No. A 33 of 1952-Importation (Prohibition) (Speci- fied Articles) (Amendment) Order.

G.N. No. A 34 of 1952-Exportation (Prohibition) (Speci- fied Articles) (Amendment) Order.

G.N. No. A 49 of 1952-Public Revenue Protection Ordin-

ance: -Order.

G.N. No. A 59 of 1952-Dutiable Commodities Ordinance:

-Resolution.

G.N. No. A 62 of 1952-Reserved Commodities (Re-export)

Amendment Order.

P. C. M. SEDGWICK,

Director of Commerce and Industry.

APPENDIX I

Comparative Table of Total Values of Imports During April 1950/March 1951 and April 1951/March, 1952

April

1950

247,116,248

April

1951

427,833,190

May

297,652,066

May

427,541,530

June

265,761,294

June

404,437,243

July

August

September

240,962,133

July

361,729,694

295,981,525

August

317,560,388

...

358,846,627

September

331,593,858

October

368,496,125

October

418,801,231

November

427,173,863

November

389,904,915

December

436,162,244

December

457,506,940

January 1951

452,589,359

January 1952

384,813,064

February

345,942,508

February

331,961,187

March

534,873,680

March

284,483,598

Total

4,271,557,672

Total

4,538,166,838

Average per month

355,963,139

Average per month

378,180,570

APPENDIX II

Comparative Table of Total Values of Exports During April 1950/March 1951 and April 1951/March 1952.

April

1950

228,740,156

April

1951

496,806,255

May

265,772,409

May

408,139,334

June

258,147,120

June

373,563,938

July

294,772,222

July

273,205,012

August

September

348,438,615 August

276,953,643

403,433,558

September

260,799,791

October

November

427,831,849

October

274,387,924

442,703,957

November

241,141,933

December

January 1951

多

377,778,457

December

279,434,959

543,791,157

January 1952 ..... 196,736,857

February

448,132,761

February

211,381,677

March

556,670,998

March

240,361,315

Total

4,596,213,259

Total

3,532,912,638

Average per month

383,017,772

Average per month 294,409,387

APPENDIX III

3 MILLION

1,100

1.000

COMPARISON OF VOLUME OF trade, HONG KONG, 1951/52 WITH 1950/51 AND 1949/50.

(MOVING AVERAGE, 3 MONTHS).

REF. No. G. 189/233.

900

800

700

600

500

400

300

200

100

1951/52

1949/50

1950/51

NOTE: The curve is plotted on a moving average of the figures for 1951/52 and of the figures for the corresponding months in 1950/51 and 1949/50. Thus the figures plotted for April are the averages of the figures for March to May.

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

APPENDIX IV

VOLUME OF TRADE, HONG KONG, IMPORTS AND EXPORTS IN $,

APRIL, 1951 TO MARCH, 1952

Ref. No. G. 189/234

$ MILLION

1,000

900

300

700-

Volume of Trade

600-

500-

400-

300-

200-

100

Imports

Exports

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

- APPENDIX V

VOLUME OF TRADE, HONG KONG, IMPORTS AND EXPORTS IN $,

APRIL, 1951 TO MARCH, 1952

Ref. No. G. 189/235

$ MILLION

1,000-

900-

800

700-

Volume of Trade

600-

500-

400-

Imports

300.

200

100

Exports

NOTE: The curve is plotted on a moving average of the figures for 1951 and 1952. Thus the figures plotted for April are the averages of the figures for March to May.

APR MAY JUN JUL AUC SEP OCT NOV DEC

JAN FEB

MAR

APPENDIX VI

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Alcohol

9,692 gals.

59,105

Aluminium Ware

1,458 doz.

805 sets

62,322

Arts

243 prs.

34,396

5,231 doz.

Bamboo Ware

20,203 sets

37,552 doz.

888,759

38,176 bales

Batteries

281,827 doz.

752,297

Bean Stick & Bean Curd

587,002 lbs.

1,294,262

Beer

1,344 gals.

5,600

Birds' nests

26,875 lbs.

778,076

Bulbs for flashlight

60 cases

612 sets

1,590,209

22,152,418 pcs.

Buttons

Camphor tablets & Powder

129,420 gross

1,567,316

136,841 lbs.

554,284

Camphorwood chests & Furniture

4,767 sets

2,574,530

Candles

65,875 pcs.

55 crates

38 boxes

18,666 doz.

48,510

220,100 pcs.

Canning & Preserving

4,178,367 lbs.

2,012 cases

6,840,493

1,374 doz.

China Ware

126 bots.

various

537,465

APPENDIX VI—Contd.

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Chinese Pens

1,297 gross

34,032

Chinese Raw Medicine

75,989 lbs.

20 boxes

}

438,609

Cigarettes

Confectionery

546 cases

56,791 lbs.

372,963

181,605

Cordials

1,635 doz.

27,932

Cosmetics & Perfumery

540 gross

860,329

170,461 doz.

Cotton Piecegoods

18,078,269 yds.

38,292,960

Cotton Quilts

89 doz.

13,440

Cotton Waste

4,877 bales

989,874

Cotton Yarn

53,094 bales

483 lbs.

115,236,533

851 cases

Cutlery

66,678 pcs.

191,328

Electrical Accessories

1,003,329 doz.

553,935

600,000 pcs.

Embroidery

25,097 sets

63,074 doz.

3,173,785

540 prs.

Enamel Ware

802,181 doz.

7,213,681

Fans (Sandal wood & Paper)

23,382 pcs.

1,313 doz.

27,346

Feathers

various

484,413

Feather dusters

14,710 pcs.

26,329

Fibre Ware

1,082 sets

944 pcs.

54,517

442 doz.

Fire crackers

16,925 cases

1,088,172

APPENDIX VI-Contd.

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Fish & Fish Products Flashlights

607,020 catties

3,619,034

760,838 doz.

400 sets

16,638,075

Furs

9,001 pcs.

184,719

Ginger preserved

531,616 lbs.

129 cases

705,344

Glass ware

322,525 doz.

579,954

Gourmet Powder

3,240 doz.

175,588

Groundnut Oil

89 piculs

99,246

Handkerchiefs

575 sets

223,921 doz.

1,076,789

Hardware

various

3,864,554

Hats & Caps

52,839 doz.

796,272

Hurricane lanterns

8,169 doz.

323,718

Ink

868 bots.

318 doz,

11,370

Irons, Charcoal

1,024 doz.

76,331

Ivory ware

various

781,867

Jewellery

various

570,924

Joss Sticks & Paper

various

195,057

Kerosene lamps, & Lamp ware

13,439 doz.

188,424

Knitted Belts Ribbons & Laces

various

64,669

Knitted wear

44 sets 400 lbs.

12,996,892

690,784 doz.

Lacquer ware

Lamp shades Lamp wicks

18 cases 179 doz.

12,527

152 pcs.

1,476

182,400 yds.

25,247

APPENDIX VI-Contd.

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Leather belts

13,568 doz.

197,462

Leather shoes

466,504 prs.

2,199,491

Leather suit cases

2,012 pcs.

46,107

Leather ware

195 doz.

17,902

Machinery

65 sets

399,416

Mantles

932 doz.

8,046

Matches

60,638,280 boxes

1,672,371

Mats & Matting

2,818 doz.

5,922 bales

898,882

Mosquito destroyers

277,672 Boxes

144,522

Mosquito netting

574 pcs.

8,375

70 sets

Motion pictures

164 copies

570,458

Musical Instruments

42 doz.

1,806

Neckties & Scarves

9,131 doz.

178,648

Needles

75,292,900 pcs.

228,946

Paint, Varnish & Lacquer

various

166,177

Paper lanterns

various

120,904

Pencils

53,682 gross

103,757

Plastic Belts

24,607 doz.

252,156

Plastic ware

various

278,893

Preserved Fruits

1,245,259 lbs.

3,655,959

Preserved Meat

various

2,012,738 -

Pressure lanterns

various

264,054

APPENDIX VI-Contd.

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Printed cloth

Printed paper

Processed Groundnuts

77,629 yds. 3,591 doz.

132,327

various

136,198

140 lbs.

241

Proprietary Medicines

various

1,454,271

Raincoats

1,375 doz.

2,445 sets

243,705

Rattan canes & peel

various

2,241,117

Rattan ware

various

5,879,130

Rope & twine

Rubber shoes

Rubber ware

295,953 lbs.

1,313 coils

479,917

7,675,546 prs.

15,705,962

400 lbs.

123 doz.

5,850

Salted eggs

18,731 gross

620 lbs.

934,649

Sauces

1,139 lbs.

2,047

Screws

various

557,348

Seagrass Ware

various

2,001,135

Sesame seeds

5,600 lbs.

10,168

Sharksfins

160 lbs.

2,772

Shoe laces

30,709 gross

257,730

Sieves

1,590 sets

9,161

470 pcs.

Silk & Mill art

410,011 yds.

1,528,410

Silk thread

904 lbs.

35,052

Soap

2,063 gross

121,581

116,125 lbs.

APPENDIX VI-Contd.

Statistics of Locally Manufactured Products exported under Imperial Preference Certificates and Certificates of Origin for the period from 1st April, 1951 to 31st March, 1952

Commodity

Quantity

Value In HK$

Socks

Soy

321,925 doz.

3,016,001

1,120,533 lbs.

701,474

Sugar

128,150 lbs.

149,759

Suits & Clothing

394,981 doz.

14,208,865

Table cloths & bed covers

1,579 gross

198,578

3,910 doz.

Tallow

400 pcls.

61,692

Tea

200,759 lbs.

933,070

Thread, cotton

583 gross

12,000 yds.

45,062

100 lbs.

Tooth brushes

7,725 gross

417,189

Towels

various

2,016,900

Toys

various

589,333

Umbrellas

42,484 doz.

1,774,574

Vacuum flasks

18,135 doz.

908,753

Vegetables, preserved

9,806 lbs.

9,805

Watch bands

213,191 doz.

2,841,020

Water chestnuts

137,090 lbs.

163,651

Wooden ware

various

285,197

Woolen hand knitting yarn

10,325 lbs.

160,756

Total number of Imperial Preference Certificates

Certificates of Origin

303,424,934

10,758

29,151

APPENDIX VII

Comparative Table showing number of Essential Supplies

Certificates issued for the period ended 31st March, 1952

From Dec. 1950 From 1st April

Supply Country

to 31st March

1951.

1951 to 31st

March 1952.

Australia

242

Austria

Belgium

100

343

Burma

Brazil

Canada

357

Colombo

Curaçao

Cyprus

Czechoslovakia

Denmark

Formosa (Taiwan)

France

268

Germany

540

Holland

214

India

Indonesia

Ireland

Italy

Japan

Macau

103

1,427

3,408

Luxembourg

Mexico

N. Borneo

New Zealand

Norway

Philippines

Portugal.. Ryuku Islands Singapore S. Africa Sweden

Switzerland

Thailand

Timor

| | | |

561

U. K.

U. S. A.

GRAND TOTAL

176

6,134

1,010

2,078

2,746

14,613

APPENDIX VIII

(a) Number of Import Licences Issued During the Period

al.

From 1st April, 1951 to 31st December, 1951

Australia

605

Austria

414

Belgium

1,590

British North Borneo

167

British Empire others

Canada

1,699

Central America

Denmark

676

French Indo-China

India

338

Japan

11,199

Malaya

835

Netherland East Indies

Norway

825

Philippine Islands

South America

181

Switzerland

3,365

Thailand

United Kingdom

United States of America

Other Countries

291

9,656

1,938

25,449

Total

59,572

Austria

APPENDIX VIII-Contd.

(b) Number of Import Licences Issued During the Period

From 1st January, 1952 to 31st March, 1952

Argentina

Australia

Aden

Afghanistan

Belgium

Borneo

Belgian Congo

Burma

Brazil

125

208

Czechoslovakia

China

Canada

Cuba

Ceylon

Chile

Cyprus

Denmark

Egypt

106

433

Eritrea

France

557

Formosa (Taiwan)

Finland

French Indo-China

Germany

1,651

Greece

Holland

Hungary

Italy

India

Indonesia

Iraq

Iran

682

319

Japan

6,755

Korea

162

Malaya

194

APPENDIX VIII-Contd.

(b) Number of Import Licences Issued During the Period

From 1st January, 1952 to 31st March, 1952

(Contd.)

Mauritius

Macao

Madagascar

Mexico

Morocco

Norway

New Zealand

Portugal

Poland

Philippines

Palestine

Pakistan

Spain

Switzerland

Sweden

South Africa

Syria

Thailand

Turkey

U. S. S. R.

U. S. A.

United Kingdom

Yugoslavia

Total

APPENDIX IX

Number of Export Licences Issued During the Period

From 1st April, 1951 to 31st March, 1952

Exports to North China

Prohibited Exports

General Exports

Restricted Exports

Exports of Foodstuff

Exports of Gold and Silver

Exports to Japan

Total

3 ·

104

618

307

203

828

3,005

17,098

1,084

22,260

25,378

55,984

4,621

758 4,071

114,156

Month

APPENDIX X

Comparative Table of Numbers of Manifests Received During April, 1950/March, 1951 and April, 1951/March, 1952

Ocean

River

Junk

Total

1950

1951

1950

1951

1950

1951

1950

1951

April

584

504

561

312

1,067

2,715

2,212

3,531

May

619

523

719

396

1,494

3,263

2,832

4,182

June

585

454

579

405

1,846

2,759

3,010

3,618

July

556

468

586

423

2,146

3,366

3,288

4,257

August

541

454

574

484

2,174

3,529

3,289

4,467

September

527

464

591

389

2,801

3,485

3,919

4,338

October

552

468

576

343

3,189

3,156

4,317

3,967

November

515

434

397

289

3,815

2,748

4,727

3,471

December

558

469

418

301

3,509

2,329

4,485

3,099

1951

1952

1951

1952

1951

1952

1951

1952

January

530

453

388

313

3,580

2,037

4,498

2,803

February

496

390

327

308

2,372

1,841

3,195

2,539

March

563

457

369

322

2,650

1,603

3,582

2,382

Total

6,626

5,538

6,085

4,285

30,643

32,831 43,354

42,654

Average per month

552

462

•

507

357

2,554

2,736

3,613

3,555

APPENDIX XI

Comparative Tables of Numbers of Declarations Received in

April, 1950/March, 1951 and April, 1951/March, 1952

April 1950-March 1951

April 1951-March 1952

-09

April

1950

25,973

April

1951

31,946

May

28,500

May

33,048

June

28,845

June

35,110

July

29,082

July

34,902

August

32,883

August

33,422

September

33,761

September

34,439

October

35,702

October

37,895

November

40,809

November

35,731

December

39,190

December

39,401

January 1951

38,463

January 1952

43,017

February

28,264.

身

February

44,598

March

32,669

March

45,149

Total

394,141

Total

448,658

Average per month

32,845

Average per month

37,388

APPENDIX XII

Statement of Revenue for the Period from 1st April

1951 to 31st March, 1952

Gross

Net

Duties: --

Liquor Duties

18,755,626.30

18,532,061.29

Hydrocarbon Oils Duties

15,341,238.24

15,281.152.85

P. M. & T. P. Duties

4,062,685.63

4,050,828.71

Table Water Duties

1,915,801.12

1,915,743.76

Tobacco Duties

Licences, Fines & Forfeitures:-

40,391,365.43

37,860,938.49

Liquor Licences

765,037.07

764,509.23

Hydrocarbon Oils Licences

22,600.89

22,589.37

P. M. & T. P. Licences

126,722.57

126,658.60

Miscellaneous (Table Water)

Licences

6,115.19

6,109.59

Tobacco Licences

394,762.16

Tally Clerk Licences

6,755.00

4,661,431.73

Forfeitures

Fees of Court or Office:-

Denaturing Fees Official Certificates Official Signatures

Anti-Narcotic Smuggling Guards

Bonded Warehouse Supervision

Dept. of C. & I. (Supplies Division)

Expenditure

Publications

Internal Revenue:

Stamp Duties

142,758.51

292,430.10

292,370.10

26,220.00

23,785.00

16,200.00

55,296.00

894,537.82

11,190.00

448,658.00

Miscellaneous Receipts:-

Other Misc. Receipts

41,075.41

41,010.41

Total

88,378,507.17

85,549,346.62

APPENDIX XIII

Return of Liquor Duty collected from 1st April,

1951 to 31st March, 1952

EUROPEAN TYPE LIQUOR

Class of Liquor

Gallons

Amount of duty collected

Ale, Beer, Cider and Stout:

(Non Empire)

947,599

1,804,136.47

(Empire)

484,272

759,210.03

Beer (Local)

590,122

590,122.12

Brandy:

(Non Empire)

79,742

3,226,070.58

(Empire)

7,046

226,815.92

Whisky:

(Non Empire) (Empire)

Gin and Cocktail:

(Non Empire) (Empire)

Rum:-

601

73,432

24,568.75 2,377,006.22

610

32,878

24,560.30 1,115,527.18

(Non Empire)

667

26,751.72

Empire)

1,558

50,319.74

(Local)

3,136

102,992.00

Champagne and Sparkling Wine:

(Non Empire)

(Empire)

4,325 14

190,552.79

485.39

Liqueur:-

(Non Empire)

(Empire)

Carried forward

11,104 978

2,238,084

490,942.05 35,298.96

11,045,360.22

APPENDIX XIII-Contd.

Return of Liquor Duty collected from 1st April,

1951 to 31st March, 1952

EUROPEAN TYPE LIQOUR

Class of Liquor

Gallons

Amount of duty collected

Brought forward

2,238,084

11,045,360.22

Port:

(Non Empire)

15,140

378,509.33

(Empire)

14,866

297,326.32

Sherry, Madeira and Malaga:-

(Non Empire)

(Empire)

6,454 239

161,345.70

4,784.84

Vermouth:

Non Empire)

(Empire)

2,701 316

54,016.13 5,056.00

Miscellaneous:

(Non Empire)

14,709

294,180.28

(Empire)

1,723

46,911.86

Spirit of Wine:

(Non Empire)

4,053

78,213.68

(Empire) (Local)

1,387

21,047.36

5,237

77,759.36

Spirituous Liquors

....

58,613

339,419.52

Total

2,363,522

12,803,930.60

NOTE: Fractions of a gallon are not shown in this Table.

APPENDIX XIV

Return of Liquor Duty collected from 1st April, 1951 to 31st March, 1952

CHINESE TYPE LIQUOR

Liquor Amount of

distilled locally

duty

Imported Liquor

collected

Amount of Total amount

duty collected

of duty

collected

Gallons

的

Gallons

1,188,736

4,774,044.00

33,923 171,596.16 4,945,640.16

89,072

560,047.84

3,285 17,977.77 578,025.61

34,544 322,227.12

322,227.12

Native Spirits not more than 25% of

alcohol by weight

Native Spirits over 25% of alcohol

by weight

Northern Spirits over 25% of alcohol

by weight

Northern Spirits not more than 25%

of alcohol by weight

20,246 103,864.40

103,864.40

Total $5,949,757.29

NOTE: Fractions of a gallon are not shown in this Table.

APPENDIX XV

Return of Liquor Licences Issued and Summary of Revenue derived from Liquor for the period from 1st April, 1951 to 31st March, 1952

General Bonded Warehouse

Licences:-

Licensed Warehouse Licences:-

4.00

的

$600

Distillery Licences:---

4,800.00

(a) Single Still

$ 25.

(b) Two Stills

$200.

275.00 1,400.00

Brewery Licence:---

$600

600.00

Canteen Licences:

Importer's Licences:-

3.00

$150

586

87,900.00

Dealer's Licences:-

(a) for

intoxicating

liquor

other than Chinese type

liquor:-

$1,500

193

289,500.00

(b) for Chinese type liquor:—

(i) $650

341

221,650.00

(ii) $550

48,400.00

(iii) $400

1,600.00

(iv) $ 50

124

6,200.00

toxicating liquor:-

$30

592

17,760.00

Carried forward

680,092.00

APPENDIX XV—Contd.

Return of Liquor Licences Issued and Summary of Revenue derived from Liquor for the period from 1st April, 1951 to 31st March, 1952

Brought forward

Retailer's Licences:-

(a) for Chinese type liquor:-

(i) $150

$ 680,092.00

(ii) $ 25

6,450.00 200.00

(b) for liquor other than in-

toxicating liquor:-

(i) $50

913

45,650.00

(ii) $30

654

19,620.00

(iii) $20

233

4,660.00

Permit to use Alcohol free of duty

in an educational, scientific or charitable institution:-

Harbour Vessel Licences:-

Ship Licences:

$10

Miscellaneous

Total

Duty on:-

European Liquor Spirituous Liquor

Chinese Liquor

Total

Plus Transfers

Total

Refund of Liquor Duties

Less Transfer

Net Total

Grand Total

}

ลง

2.00

10.00

130.00

8,223.07

765,037.07

12,287,490.68 516,439.92 5,949,757.29

18,753,687.89 1,938.41

18,755,626.30 223,491,28 73.73

18,532,061.29

19,297,098.36

APPENDIX XVI

Return of Tobacco Licences Issued and Summary of Revenue derived from Tobacco for the period from 1st April, 1951 to 31st March, 1952

Licensed Warehouse Licences:

(a) $600

(b) $300

CO -

1,800.00

300.00

Manufacturer's Licences: -----

(a) $300

(b) $150

CON

1,800.00 300.00

Travelling Salesman's Licences:

$ 10

189

1,890.00

Importer's Licences:

$150

117

17,550.00

Dealer's Licences:

$300

344

103,200.00

Retailer's Licences:

(a) $ 60

2,418

145,080.00

(b) $ 40

2,556

102,240.00

894

17,880.00

Squatter's Licences:

$ 8

608.00

Miscellaneous

2,114.16

Total

394,762.16

Duty on:-

1bs.

Cigars

21,233

148,581.97

Cigarettes

3,053,069

17,320,375.05

European Smoking Tobacco

108,114

442,111.36

Chinese Tobacco Prepared

12,827

38,481.00

Clean Tobacco Leaf

81,139

305,117.70

Raw Tobacco Leaf (Empire)

847,623

3,009,061.65

Snuff

Raw Tobacco Leaf (Non-Empire)

Total

Less Drawback

Nett Total

Grand Total

5,100,626

19,127,347.50

289.20

40,391,365.43

2,530,426.94

37,860,938.49

38,255,700.65

APPENDIX XVII

Return of Licences Issued and Revenue derived from Hydrocarbon Oils for the period from 1st April, 1951 to 31st March, 1952

Licensed Warehouse Licences

$350

Importer's Licences:

2,800.00

$150

13,350.00

Dealer's Licences

$ 10

900.00

Retailer's Licences:

$ 10

850.00

Miscellaneous

4,700.89

Total

22,600.89

Duty on:-

Light Oils

Heavy Oils for Vehicles

Heavy Oils

Admixture

Imperial Gallons

10,226,655 8,181,324.00

1,596,869 638,747.60

63,943,955

6,394,395.50

376,939

126,771.14

Total

Less Drawback

Nett Total

Grand Total

15,341,238.24

60,085.39

15,281,152.85

15,303,753.74

APPENDIX XVIII

Return of Licences Issued and Revenue derived from Toilet Preparations and Proprietary Medicines for the period from 1st April,

1951 to 31st March, 1952.

Manufacturer's Licences:

ee-

$150

272

40,800.00

Warehouse Licences:

$ 10

274

2,740.00

Importer's Licences:-

(a) $150

9,450.00

(b) $ 20

465

9,300.00

Dealer's Licences:

$ 10

670

6,700.00

Retailer's Licences

(a) $ 60

5,820.00

(b) $ 40

520.00

913

27,390.00

(d) $ 20

654

13,080.00

(e) $ 10

233

2,330.00

Miscellaneous

8,592.57

Total

126,722.57

Duties on Toilet Preparations and

Proprietary Medicines

4,061,787.01

Plus Transfers

898.62

Total

Less Refund

4,062,685.63

11,856.92

Nett Total

Grand Total

4,050,828.71

4,177,551.28

APPENDIX XIX

Return of Licences Issued and Revenue derived from Table Waters for the

Period from 1st April, 1961 to 31st March, 1952

Licensed Warehouse Licences:

$ 10

Manufacturer's Licences:

110.00

(a) $300

(b) $ 75

3,300.00

1,500.00

Importer's Licences:

$100

600.00

Miscellaneous

605.19

Total

6,115.19

Gallons

Duty on Table Waters

3,991,206

Plus Transfer

1,915,778.88 22.24

Total

1,915,801.12

Less Refund

57.36

Nett Total

1,915,743.76

Grand Total

1,921,858.95

APPENDIX XX

Return of Tally Clerk Licences Issued from 1st April,

1951 to 31st March, 1952

Tally Clerk's Licences: ---

Total

1,351

6,755.00

APPENDIX XXI

Major Seizures for the period from 1st April,

1951 to 31st March, 1952

(a) Dutiable Commodities

1. Chinese Prepared Tobacco

2. Cigarettes

3. Pipe Tobacco

4. Tobacco Leaf

5. Cigars

6. European Liquor

7. Chinese Liquor

8. Beer

9. Hair Pomade

10. Toilet Soap

11. Tooth Paste

12. Face Powder

13. Talcum Powder

14. Perfume

15. Hair Dye

14,364 lbs. 4,512,262 pcs. 127 tins

494 lbs.

51 pkts.. 11 boxes & 50 pcs. 479 bots, & 7 demijohns 3,045 gallons

72 bottles

11 tins

467 cakes

236 tubes

765 boxes & 22 lbs,

1,052 boxes & 70 lbs.

17 bottles

224 bottles

16. Miscellaneous Toilet Prepara- 3,413 pcs.

tions

17. Chinese Medicines

18. Boot Polish

12,508 bottles, 962 boxes, 3,194 pcs..

106 pkts., 7 bundles & 2 jars.

371 tins.

(b) Prohibited Exports (Specified Articles)

(1st July, 1951 to 31st March, 1952)

Hoop steels

52 tons.

Rubber tyres

Motor parts

Haemacytometers Duometer

Theodolite

Microphones

115 pcs.

11,203 pcs., 111 boxes, 158 lbs, &

23 sets.

470 boxes.

4 cases.

17 sets.

64 pcs.

X-ray sets

4 sets.

X-ray equipment

15 sets.

Diaphragm assembly

496 pcs.

Electric test pens

380 pcs.

Transformers

Earphone diaphragms

17 pcs.

95 pcs.

APPENDIX XXI-Contd.

Major Seizures for the period from 1st April, 1951 to 31st March, 1952

(b) Prohibited Exports (Specified Articles)

(1st July, 1951 to 31st March, 1952)-Contd.

Asbestos yarn

Voltage regulator cut-out

High speed steel

Mild steel wire rods

Aluminium scraps ... Aluminium foil Aluminium powder Aluminium ingots Analytical balance Reamers

Machine parts Graphite crucibles Zinc sheets

Copper wire & scrap

Kodak Super XX Pan Flash bulbs

Film

Photographic paper Loud speakers

Radio valve

Radio condensers

Steel drills

Ball bearings

Roller bearings

Electric wire

Steel wire

Military telephone wire

Military telephone sets

Smoke rubber

Scrap rubber

Rubber accelarators

Carbon black

20 bales.

253 pcs.

282 pcs. 14,600 lbs.

43 bundles.

90 pkts. & 10 rolls. 7 drums.

68 pcs.

20 cases & 6 sets.

3 cases & 20 sets.

31 pcs.

34 pcs.

25 cases & 5 bags.

10 cases, 6,181 lbs., 78 coils & 4

rolls.

27 boxes.

97 pcs.

740 rolls, 150 tins, 70 boxes & 290

pcs.

318 boxes, 600 pkgs., & 100 tubes.

95 pcs.

7 cases & 1,549 pcs.

11,298 pcs.

1,613 pcs.

562 pcs., 9 cases, 58 boxes & 20

sets.

1,567 pcs.

559 coils & 300 yards.

133 coils.

58 coils,

99 sets.

5 tons.

78 piculs.

6 drums.

545 cases, 480 lbs. & 33 parcels.

APPENDIX XXI-Contd.

Major Seizures for the period from 1st April, 1951 to 31st March, 1952

(b) Prohibited Exports (Specified Articles)

(1st July, 1951 to 31st March, 1952)-Contd.

Tinplate cuttings

Tin scrap

Black plates

Tinplates

Steel tools

Welding rods

Box spanners

Volume control switches

Metal scrap

Wind screen wiper & blades

Electrodes

Ammeter

Bitumen

Polystyrene

Sodium cyanide

Zinc oxide

Dinitro chlorobenzine

1. Diesel oil

2. Lubricating oil

2,520 lbs., 2 bundles & 11 tons.

14,200 lbs.

56 skids & 28 tons.

164 skids & 18 bundles.

870 pcs, & 270 pkts.

178 cases, 137 pkts., 100 lbs., 38

boxes, 113 bundles & 2 sacks,

400 pcs.

504 pcs.

1,881 lbs.

120 pcs.

6 boxes.

265 pcs.

100 tons.

26 bags.

20 drums.

301 cases.

27 drums,

11,433 gallons. 48,280

3. Petrol

1,925

4. Kerosene

6,4861/

5. Petroleum jelly

7,568

6. Engine oil

7. Miscellaneous oils

468

}}

17,606

(d) Opium

APPENDIX XXI-Contd.

Major Seizures for the period from 1st April,

1951 to 31st March, 1952

Place of Seizure

Date

Type

Ozs.

Destination indicated by cir- cumstances of seizure

Praya Connaught

Road, West Point

26. 5.51.

Raw Opium

Hong Kong

97, Tai Po Road

5. 6.51.

5.7

9, Tung Fong Street,

2nd floor

Kai Tak Airport

Prepared Opium

8. 6.51.

Raw Opium

1,071

ex C.P.A.

4. 7.51.

3,073

་་

Junk A1683V, alongside

m.s. "Hiram" B-11 ..

18. 8.51.

Kai Tak Airport

ex P.O.A.S.

19.11.51.

4,469

s/s E. Sang B-23

19. 2.52.

566.7

Kai Tak Airport

ex B.O.A.C.

20. 2.52.

3,100

APPENDIX XXII

Prosecutions by Department of Commerce & Industry

in Hong Kong, Kowloon & New Territories

1.-OPIUM

Possession

2.--DANGEROUS DRUGS

Possession

3.—POISONS

Bail

Seizure

Arrest

Convic- tions

Es-

treated

(No Arrest)

Offence against the Pharmacy

& Poisons Ordinance

сл

4.-ARMS & AMMUNITION

Possession

1. (handed over to Police)

5.-TOBACCO

Possession-

Cigars

Cigarettes

160

151

660

Tobacco

322

316

572

Unlicensed selling

Illegal importing

คว

· 51

APPENDIX XXII-Contd.

Prosecutions by Department of Commerce & Industry

in Hong Kong, Kowloon & New Territories

6.-—-LIQUOR

Possession-

Bail

Seizure

Arrest

Convic- tions

Es-

(No

treated Arrest)

European Liquor

สา

Chinese Spirit

126

125

296

Duty Paid Labels

Unlicensed selling

stills

distilling

565

7.-PROPRIETARY

MEDICINES AND

TOILET PREPARATIONS

Possession

138

Unlicensed selling

manufacturing

Illegal importing

8.-MISCELLANEOUS

Unmanifested cargo

Trade control

279

275

246

Failure to keep books

Total

1,148

1,121

2,602

52APPENDIX XXIII

HONG KONG GOVERNMENT

DEPARTMENT OF COMMERCE AND INDUSTRY

(SUPPLIES DIVISION)

SUMMARIZED ACCOUNTS

for the year ended 31st March, 1952

AND

Auditors' Report thereon

HONG KONG — SEPTEMBER, 1952

DESTR

ARATTE

VAD

18ft bubuo 12

A ZIGNED 76CC

C2fb6Th 2 DIVIZIO.)

COALAPKE

POZC CEZEIZ NEZA

CONTENTS

REPORT

SCOPE OF OUR EXAMINATION

TRADING AND PROFIT & LOSS ACCOUNTS

OPERATING ACCOUNT-JAPAN TRADE

SURPLUS ACCOUNT

Page

57 59

60 - 62

BALANCE SHEET

Liabilities

Assets

GENERAL COMMENTS

STATEMENT OF ACCOUNTS

64 66

66 - 67

Schedule No.

CONSOLIDATED SUPPLIES DIVISION BALANCE

SHEET as at 31st March, 1952

SURPLUS ACCOUNT-31st March, 1952 ...

FOOD SECTION

General Profit and Loss Account for the year

ended 31st March, 1952

III

Rice Trading and Profit and Loss Accounts for

ended 31st March, 1952

IIIA

FOOD SECTION,-Contd.

Schedule No

Sugar Trading and Profit and Loss Accounts for

the year ended 31st March, 1952

Frozen Meat Trading and Profit and Loss Ac-

counts for the year ended 31st March, 1952

Other Foodstuffs Trading and Profit and Loss Accounts for the year ended 31st March, 1952

Chatham Road Godowns Operating Account for

the year ended 31st March, 1952

FUEL (Coal and Firewood) SECTION

IIIB

IIID

Trading and Profit and Loss Accounts for the

year ended 31st March, 1952

JAPAN TRADE SECTION

Operating Account for the year ended 31st March,

1952

...

Hong Kong, 30th September, 1952.

The Director,

The Department of Commerce & Industry,

HONG KONG.

Sir,

DEPARTMENT OF COMMERCE & INDUSTRY

SUPPLIES DIVISION ACCOUNTS

We have completed our examination of the accounting records maintained by the Supplies Division of your Department for the year ended 31st March, 1952, and we now report thereon as follows:

SCOPE OF OUR EXAMINATION

Without making a detailed audit of all transactions, we have examined or tested the accounting records and other evidence in the manner and to the extent we deemed appropriate. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary.

TRADING AND PROFIT & LOSS ACCOUNTS

The Accounts of the Division for the year under review are presented in a form which differs from that of previous years. Trading Accounts are now presented without statistical information as to quantities and the results of trading in Raw

and Refined Sugar are combined as are those in respect of certain other foodstuffs. These changes do not, however, materially affect the basis of presentation which is substantially that of previous years.

When considering the results of the year's operations as reflected in the Accounts, the following points should be taken into consideration:

In accordance with Government's policy of creating reserve stocks of certain essential commodities, the stocks held by the Supplies Division have been built up to and maintained at, levels in excess of normal trading requirements. For this reason, certain items of expenditure have been and are being, incurred to an extent in excess of that directly attributable to normal trading activities. While it is not practicable to calculate this increase in expenditure so as to enable it to be shown separately in the Accounts under review, the recurrent charges thereby affected are:

Storage Charges, Interest charged by Treasury, Storage Losses (including loss in Weight of Firewood) and Incidental Expenses (e.g. Fire Insurance).

To cite an example, the provision of additional refrigerated storage space to enable standing stocks of frozen meat to be considerably increased has resulted in an increase in the effective rate of storage. The consequence of this increase is a further charge of $321,000 in respect of the period from 1st October, 1951 to 31st March, 1952.

2. The amount of Interest charged by Treasury on over- drawn Suspense Accounts at the rate of 34% per annum on maximum monthly balances has also increased, the annual pay- ment into the Development Fund of the entire profits of the Division, (Authority: Legislative Council Resolution of 19th September, 1951) the capital advanced by Government for the purchase of reserve stocks cannot be repaid as long as the stocks are held.

3. The Accounts as presented do not reflect the following items:-

(a) Anticipated storage losses on closing stocks of all commodities, with the exception of Firewood, as at 31st March, 1952. In this connexion we invite your attention to our comments, under "Stocks on Hand" in which this position is more fully set out.

(b) Insurance and other claims receivable in respect of cargoes lost or damaged prior to 31st March, 1952, settlement of which, in the approximate amount of $140,000, was subsequently effected.

OPERATING ACCOUNT-JAPAN TRADE

The system of arranging and financing imports and exports between Occupied Japan and Hong Kong through "Open Ac- count with The Supreme Commander Allied Powers, Japan" was superseded on 1st April, 1951, by a similar system operat- ing through a new account styled "Hong Kong-Japan Open Account" maintained with the Bank of Japan. The old account was, however, not closed until 10th December, 1951, by which time all Letters of Authority opened prior to the change in system had been completed or cancelled on expiry, the balance being transferred to the new account. The scale of charges by which income accrued to the Hong Kong Government remained unaltered by the transfer of operations from "Open Account with S.C.A.P." to "Hong Kong-Japan Open Account".

The operation of the "Hong Kong-Japan Open Account" was, by an agreement dated 31st August, 1951, terminated on that date except in respect of negotiations to be effected under Letters of Authority then remaining open. Except in respect of two minor negotiations, all trading operations financed through this account had ceased by 31st March, 1952, as had the income derived from this source by Government.

Settlement of the balance in favour of the Bank of Japan resulting from these operations is, by agreement between the Government of Japan and Government (through the United Kingdom Liaison Mission in Japan) to be made in Sterling at the Bank of England middle rate for Sterling against United States Dollars ruling at the date of payment. While original entries in this account were booked at rate HK$5.67=US$1, partial settlements during the year at the agreed rate resulted in an exchange loss of HK$425,320.34, which is covered by the provision made in the previous year. Provision for the anti- cipated exchange loss on the settlement of the balance in favour of the Bank of Japan as at 31st March, 1952 (US$810,209.01) is shown separately in the Accounts in the amount HK$64,998.42.

From our examination, on a test basis, of the records of the Japan Trade Section, as supported by statements and advices received from the participating banking houses, we are of the opinion that all income accruing to Government in respect of Japan Trade operations during the year under review has been duly accounted for by these banking houses.

SURPLUS ACCOUNT

Pursuant to the Legislative Council Resolution of 19th September, 1951, the balance at credit of this Account as at 31st March, 1951, $21,670,467.44, was released to the Accountant General for appropriation to the Development Fund in February, 1952.

ADJUSTMENTS IN RESPECT OF YEARS PRIOR TO 31st MARCH, 1951

Late price adjustment on shipment of Refined Sugar

(HK$279,999.80).

This adjustment arose from a claim by the Ministry of Food that Government has been undercharged £8.15.0. per ton on a shipment of 2,000 tons of refined sugar in December 1949;

the Ministry contends that the shipment was made from the allocation in respect of the first Quarter of 1950 and not out of that pertaining to the last Quarter of 1949 and it should, there- fore, have been paid for at the higher price ruling in respect of the later allocation. While full provision has been made in the Accounts under review, the claim is still the subject of discussion.

Profit on operation of Chatham Road Godowns for the period 5.8.50 to 31.3.51, transferred to Depreciation Reserve Account (HK$95,802.97).

Funds for the construction by Government of Godowns at Chatham Road for the use of the Supplies Division were advanced by Treasury and charged to a specially created Rice Storage Suspense Account. The cost of operating and main- taining these godowns has been met by advances from Rice Storage Suspense Account and storage charges at commercial rates have been paid by Supplies Division to Treasury for the credit of this account, the overdrawn balance of which will, in due course, be liquidated by the net repayments representing the profit made by the Supplies Division in operating these Godowns.

This profit for the year ended 31st March, 1951, was in- cluded in Rice Trading Account. During the year under review, it was decided, with the approval of the Financial Secretary, to utilize these profits to provide depreciation on the godowns and, accordingly, the operating profits for the current and prior years have been transferred to the credit of the "Reserve for Depreciation of Godowns".

Amount set up to cover claims from Custodian of Enemy

Property not now required ($107,906.20).

This amount was included under "Sundry Creditors and Deposits Received" as at 31st March, 1951. In our report on the Accounts for the year ended on that date we stated that, according to a statement received from the Custodian of Enemy Property, the Supplies Division was indebted to the Custodian

Lar

in the amount HK$3,046,933.49 and that, in view of certain discrepancies in the related records, we were "unable to express an opinion as to whether or not full provision has been made for liability if any, to the Custodian of Property as at 31st March, 1951."

No payment to the Custodian was made by Supplies Division during the year under review and from correspondence, copies of which were produced for our inspection, it would ap- pear that the Custodian's claim on the Supplies Division has been withdrawn or otherwise settled without charge to the Division. The Accountant General has confirmed that the Custodian of Property has, in fact, no further claims against the Suspense Accounts of the Department.

LIABILITIES.

BALANCE SHEET

Treasury Suspense Accounts—$55,645,190.41.

The Accountant General has confirmed these balances as at 31st March, 1952.

Hong Kong Japan Open Account US$810,209.01 at 5.67—

HK$4,593,885.07.

We have seen a statement from the Bank of Japan forward- ed by courtesy of the British Embassy, Tokyo, of the balance of this account as at 31st March, 1952.

This balance claimed by the Bank of Japan has not yet been reconciled with that appearing in the statements of the Counterpart Account supplied to the Department by its bankers in Hong Kong, who maintain this account on behalf of the Department. Efforts are being made at present to trace the difference, US$6,986.41.

Partial settlement of the balance due to the Bank of Japan in respect of the transferred balance of "Open Account with The Supreme Commander Allied Powers, Japan" was effected in Sterling during the year under review, the resulting exchange loss to Government being shown in Operating Account Japan Trade (Schedule VI). Operations passing over "Hong Kong- Japan Open Account" during the year resulted in a balance in favour of Government and this automatically reduced still further, at no exchange loss, the balance owing on the old account. As a result, the provision made in the previous year's Accounts proved excessive. After providing for the anticipated exchange loss on settlement of the balance due to the Bank of Japan as at 31st March, 1952, the balance has been credited to the Surplus of the Japan Trade Section.

According to an Exchange of Notes between the Govern- ments of the United Kingdom and Japan, as published in the White Paper on this subject, settlement of Hong Kong—Japan Open Account will be made in Sterling at the Bank of England middle rate against United States Dollars at the rate of settle- ment. On this basis and under present circumstances, the exist- ing provision for exchange loss on settlement of the Account is, in cur opinion, adequate.

Sundry Creditors and Deposits Received $2,248,168.47.

So far as we have been able to ascertain from our examina- tion, we are of the opinion that provision has been made for all known liabilities as at 31st March, 1952, with the exception of the following:

(a) Commitments in respect of commodities ordered under Purchase Contracts uncompleted as at 31st March, 1952, the amount of which cannot be ascertained with any degree of accuracy as fulfilment of these contracts is dependent upon production and crop yields at the source of supply.

(b) Claims, in the approximate amount of HK$217,000

received in respect of price increases on frozen meat shipments received prior to 31st March, 1952. claims were notified only during September.

These

Included under this general heading is an amount HK$235,071.75, the amount of a levy raised upon approved importers of flour consequent on their being allowed, on the Supplies Division ceasing imports, to taken up the allocation to Government made under terms of the International Wheat Agreement.

Share of Votehead Expenditure—$754,962.33.

This has been calculated on the basis of the direct salaries and high cost of living allowances, to which has been added an oncost to cover overhead. The calculation of this oncost has, with the approval of the Financial Secretary, been made at a lower rate than that of the previous year. This oncost would appear to us to cover certain departmental activities in connexion with Government Administration unconnected with the purely trading activities of the Supplies Division.

ASSETS.

Hongkong and Shanghai Banking Corporation Japan Trade Accounts-$9,959,583.64.

We have seen certificates from the Hongkong & Shanghai Banking Corporation, Hong Kong, confirming these balances.

Sundry Debtors and Debit Balances-$9,135,981.80.

We have verified correctness of individual balances.

- 64

Stocks on Hand-$59,055,623.04

Food Section.

We have made such tests of movements in the Stock Accounting Records as we deemed necessary and have compared the balances appearing therein as at 31st March, 1952, with Stock Lists supported by certificates from Public Godown Com- panies and from Commercial firms operating godowns on behalf of the Division. In addition we have had the benefit of a report submitted by Messrs. Carmichael & Clarke, Surveyors, arising from physical tests as at 31st March, 1952, made on indepen- dently selected storage lots in public and Government godowns.

Storage losses have been brought to account during the year under review only to the extent that they had been disclosed when complete storage lots had been cleared from godowns. These losses, expressed as percentages of quantities sold, are:

Rice

Sugar

Other Foodstuffs

0.975%

0.606%

...

0.769%

Losses at the above rates, proportionate to the relative periods of storage, may be expected with regard to Stocks on Hand as at 31st March, 1952. No provision has, however, been

made in these Accounts for any anticipated losses.

Stocks on Hand have been valued at the lower of C.I.F. cost or selling price.

Fuel Section.

Our examination of the Stock Accounting Records of this Section was on the same basis as that employed in connexion with the Food Section. Stock Lists certified by the Assistant

Director, Supplies Division, and by the Fuel Officer have been accepted for purposes of our audit.

Surveys of independently selected storage lots in the yards as at 31st October, 1951 and 31st March, 1952 were made by Messrs. Carmichael & Clarke, Surveyors, whose reports thereon we have examined in conjunction with the Stock Accounting Records of the Fuel Section. A report on a further similar survey as at 27th May, 1952, has also been taken into account for the purpose of our examination of the Stock List as at 31st March, 1952.

Storage Losses realized on firewood lots cleared during the year amount to 32% by weight of stocks held at the commence- ment of the year. We are informed that the greater part of this loss was ascertained on decentralization of stocks; the losses occurring mainly in lots which had been stored for periods in excess of two years. Further provision, amounting to 10% of landed cost, has been made in the Accounts under review to cover storage losses during the year to 31st March, 1952, in stocks held at that date. We are, however, unable to express an opinion as to the adequacy or otherwise of this provision.

Fuel Stocks as at 31st March, 1952, have been valued at landed cost, in the case of coal and coke, and at landed cost less 10% to cover anticipated storage losses, in the case of firewood.

GENERAL COMMENTS

We have pleasure in recording that the records of the Supplies Division for the year under review have been maintain- ed in a satisfactory manner by the Staff of the Division. We also wish to express our appreciation of the courtesies and facilities extended to our staff in the course of our examination.

Subject to the foregoing observations, we have to report that, in our opinion, the attached Balance Sheet properly exhibits the state of the affairs of the Supplies Division as at 31st March, 1952, and the related Accounts properly disclose, in summarized form, the results of the transactions of the Division for the year ended that date, according to the best of our information and the explanations given to us and as shown by the books of the Division.

We have the honour to be,

Sir,

Your obedient servants,

LOWE, BINGHAM & MATTHEWS.

LIABILITIES AND SURPLUS

TREASURY SUSPENSE ACCOUNTS

Överdrawn Balances:

Food

HONG KONG

DEPARTMENT OF COMMERCE AND

Fuel

Rice Storage

HONG KONG/JAPAN OPEN ACCOUNT

Balance in favour of Bank of Japan

PROVISION FOR EXCHANGE LOSS

Arising from Outstanding Balance due on

Open Account

SUNDRY CREDITORS AND DEPOSITS

RECEIVED

Consolidated Balance Sheet

H.K.$

GOVERNMENT

INDUSTRY (SUPPLIES DIVISION)

as at 31st March, 1952

ASSETS

HONGKONG AND SHANGHAI BANKING

CORPORATION

Schedule I

H.K.$

$54,762,639.47

Japan Trade

319,239.79

563,311.15

Counterpart Account

$ 4,593,885.07

55,645,190.41

Commission Acount

Exchange Difference Account

2,489,756.83

2,875,941.74

9,959,583.64

US$ 810,209.01

4,593,885.07

SUNDRY DEBTORS AND DEBIT

BALANCES

64,998.42

STOCKS ON HAND As certified by

Departmental Officials

Food Section

2,248,168.47

Fuel Section

SHARE OF VOTE HEAD EXPENDITURE

1951/52

EQUIPMENT-at cost

Amount to be refunded to General Revenue

during 1952/53

Food Section

754,962.33

Fuel Section

RESERVE FOR DEPRECIATION OF

GODOWNS

291,119.62

GODOWNS-CHATHAM ROAD, at cost

SURPLUS, per Statement

15,420,881.47

HK$79,019,205.79

9,135,981.80

$57,069,769.75

1,985,853.29

59,055,623.04

1,939.63

1,200.00

3,139.63

864,877.68

HK$79,019,205.79

DEPARTMENT OF COMMERCE AND INDUSTRY

(SUPPLIES DIVISION)—HONG KONG

SURPLUS ACCOUNT

31ST MARCH, 1952

H.K.$

Schedule II

H.K.$

Balance, Operating Surplus for the year ended 31st March, 1952 carried down

Adjustments in respect of years prior to

31st March, 1951

Food Section:

Late price adjustment on 1949 shipment

of Refined Sugar

Profit on operation of Chatham Road Godowns for the period 5th August, 1950 to 31st March, 1951 transferred to Depreciation Reserve Account:

Storage Charges 5th

August, 1950 to 31st March, 1951

Less: Management, Operation and Main-

tenance Expenses 5th August, 1950 to 31st March, 1951

$199,975.86

Less:

$ 279,999.80

104,172.89

95,802.97

$ 375,802,77

Fuel Section:

Amount set up to cover Claims from Custodian of Enemy Property not now required

Adjusted Surplus, 31st March, 1952

15,688,778.04

Net Profit, transferred from Food Section General Profit and Loss Account

Net Profit, transferred from Fuel Section Trading and Profit and Loss Account

9,209,893.34

1,368,810.86

Surplus,

transferred from Japan Trade

Section Operating Account

5,110,073.84

HK$15,688,778.04

Balance,

brought down

$15,688,778.04

107,906.20

267,896.57

15,420,881.47

HK$15,688,778.04

DEPARTMENT OF COMMERCE AND INDUSTRY

FOOD

General Profit And Loss Account For

Share of Vote Head Expenditure

Interest at 3% p.a. on Treasury Advances..

BALANCE, being NET PROFIT for the

year

H.K.$

(SUPPLIES DIVISION)—HONG KONG

SECTION

Schedule III

the Year ended 31st March, 1952

412,155.29

Balances, transferred from Trading and

Loss Accounts:

1,729,954.24

Profit on RICE

$11,738,807.77

FROZEN MEAT

9,209,893.34

HK$11,352,002.87

Loss on SUGAR

$350,550.22

129,245,53

$11,868,053,30

H.K.$

OTHER FOOD-

STUFFS

165,500.21

516,050.43 11,352,002.87

HK$11,352,002.87

Stocks, at 1st April, 1951

Purchases

DEPARTMENT OF COMMERCE AND INDUSTRY

FOOD SECTION

Trading and Profit and Loss Accousts for

Less:

Recoveries and Claims

Direct Expenses

Freight

Marine Insurance

Landing and Weighing

Agency Commission

Balance, being Gross Profit carried down

(SUPPLIES. DIVISION)—HONG KONG

-RICE

the Year ended 31st March, 1952

Schedule IIIA

HK$

51,347,118.89,

Sales

$99,115,451.41

Ration

$136,336,562.89

1,264,337.09

97,851,114.32

Direct Supply

6,591,025.17

142,927,588.06

Less: Commission

$ 5,649,137.22

$ 5,194,441.91

481,495.55

988,181.44

455,551.11

7,119,670.01

Proceeds of Sales of Gunnies

13,878,738.20

Stocks, at 31st March, 1952

HK$170,196,641.42

Transportation

1,033,111.98

6,682,249,20

136,245,338.86

1,007,132.99

32,944,169.57

Incidental Expenses

Storage

Weighing Out and Handling Charges

Fire Insurance

Rented Godown Expenses

Cost of Issuing Ration Cards

Balance, transferred to Food Section General

Profit and Loss Account

$ 1,160,764.92

754,408.79

81,918.06

1,997,091,77

116,043.66

26,795.00,

$ 2,139,930.43

11,738,807.77

HK$13,878,738.20

Balance, Gross Profit brought down

HK$170,196,641.42

$13,878,738.20

HK$13,878,738.20

DEPARTMENT OF COMMERCE AND INDUSTRY

FOOD SECTION

Trading and Profit and Loss Accounts for

(SUPPLIES DIVISION)—HONG KONG -SUGAR

the Year ended 31st March, 1952

Schedule IIIB

HK$

Stocks at 1st April, 1951

Purchases

Less: Claims

Direct Expenses

4,156,979.85

Sales

$18,373,233.70

20,925.51

18,352,308.19

Ration

Direct Supply

$ 2,816,648.92

10,279,306.39

13,095,955.31

Less: Commission

179,028.72

Freight

794,230.81

Transportation

19,967.78

198,996.50

12,896,958.81

Marine Insurance

67,170.84

Proceeds of Sales of Gunnies

37,814.23

Landing and Weighing

120,479.33

981,880.98

Stocks at 31st March, 1952

Balance, being Gross Loss carried down

10,548,595.65

7,800.33

HK$23,491,169.02

Balance, Gross Loss brought down

Incidental Expenses

Storage

Weighing Out and Handling Charges

Fire Insurance

的

7,800.33

Balance, transferred to Food Section General

Profit and Loss Account

$ 350,550.22

$ 214,031.34

90,517.06

38,201.49

342,749.89

HK$

350,550.22

HK$ 350,550.22

Stocks at 1st April, 1951

Purchases

Less: Claims

Direct Expenses

Freight

Marine Insurance

DEPARTMENT OF COMMERCE AND INDUSTRY

FOOD SECTION

Trading and Profit and Loss Accounts for

(SUPPLIES DIVISION)—HONG KONG -FROZEN MEAT

the Year ended 31st March, 1952

Balance, being Gross Profit carried down

Incidental Expenses

Storage

Local Insurance

Extra Handling Charges

Condemned Stock written off (13,817 lbs.)

Balance, transferred to Food Section General

Profit and Loss Account

Schedule IIIC

HK$

2,386,110.68

HK$

Sales

$ 8,115,838.54

9,010.41

8,106,828.13

Local Consumption and Ships Stores

Navy and Army

$ 7,148,668.64

یہ

1,338,669.66

8,487,338.30

Stocks at 31st March, 1952

5,340,592.82

$ 2,780,229.35

54,375.05

2,834,604.40

500,387.91

HK$13,827,931.12

Balance, Gross Profit brought down .....

500,387.91

$ 346,564,33

9,473:73

5,063.40

10,040.92

371,142.38

129,245.53

HK$ 500,387.91

79:

HK$

500,387.91

Stocks, at 1st April, 1951

Purchases

Less: Claims

Direct Expenses

Marine Insurance

DEPARTMENT OF COMMERCE AND INDUSTRY

(SUPPLIES DIVISION)-HONG KONG FOOD SECTION -OTHER FOODSTUFFS

the Year ended 31st March, 1952

Schedule IIID

Trading and Profit and Loss Accounts for

HK$

146,401.08

Sales

$13,216,294.27

73.47 13,216,220.80

Stocks at 31st March, 1952

166.57 95,143.22

95,309.79

112,965.41

HK$13,570,897.08

Landing and Weighing

Balance, being Gross Profit carried down

HK$

5,334,485,37

8,236,411.71

HK$13,570,897.08

Incidental Expenses

Storage

176,090.12

Weighing Out and Handling Charges Fire Insurance

67,744.40

34,631.10

278,465.62

Balance, being Gross Profit carried down ...

Balance, transferred to Food Section General

Profit and Loss Account

112,965.41

HK$ 278,465.62

165,500,21

HK$ 278,465.62

DEPARTMENT OF COMMERCE AND INDUSTRY

(SUPPLIES DIVISION)-HONG KONG

SECTION

FOOD

Chatham Road Godowns Operating Account for

the Year ended 31st March, 1952

HK$

Management, Operation and Maintenance

Expenses

Balance, being Operating Profit carried to Reserve for Depreciation of Godowns

Storage Charges

123,359.13

195,316.65

HK$ 318,675.78

, A

Schedule IV

HK$

318,675,78

HK$

318,675.78

Stocks at 1st April, 1951

Purchases

DEPARTMENT OF COMMERCE AND INDUSTRY

Stevedorage and Delivery Charges

Freight Brokerage and Commission

Balance, being Gross Profit carried down...

Stocks at 1st April, 1951

Purchases

Stevedorage and Delivery Charges

Balance, being Gross Profit carried down ...

(SUPPLIES DIVISION)--HONG KONG

FUEL

SECTION

Schedule V

Coal Trading Account for

the Year ended 31st March, 1952

HK$

1,745,067.35

18,531,459.54

978,458.62

115,286.50

2,130,816.15

HK$23,501,088.16

HK$

Sales

Less: Commission on Sales

$22,611,098.27

11,942.00

22,649,156.27

Commission on Indirect Sales

Stocks at 31st March, 1952

8,221.56

843,710.33

HK$23,501,088.16

$ 1,407,080.87 1,679,604.78 229,643.33 205,613.78

Stocks at 31st March, 1952

FIREWOOD TRADING ACCOUNT FOR

THE YEAR ENDED 31ST MARCH, 1952

Sales

$ 2,379,799.80

1,142,142.96

HK$ 3,521,942.76

Gross Profit brought down

Coal

$ 2,130,816.15

Firewood

205,613.78

2,336,429.93

Repairs and Maintenance

Storage and Incidental Expenses:

Rents and Storage

Electricity and Water Charges

Rates and Property Tax

Wharfage Fees and Dues

Fire Insurance

Survey Fees

Firewood Rationing Registration

Share of Vote Head Expenditure

Interest at 31% p.a. on Treasury Advances ..

Balance, being Net Profit for the year

$ 506,624.74

13,451.42

35,618.44

23,784.17

34,423.25

41,313.59

2,950.00

5,000.00

663,165.61

152,180.73

152,272.73

1,368,810.86

HK$ 2,336,429,93

―

HK$ 2,336,429.93

DEPARTMENT OF COMMERCE AND INDUSTRY

JAPAN TRADE

Operating Account for the

(SUPPLIES DIVISION)—HONG KONG SECTION

year ended 31st March, 1952

Bookkeeping Commission paid to Hongkong & Shanghai Banking Corporation for maintaining Counterpart Account of Hong Kong/Japan Open Account

Share of Vote Head Expenditure

Provision for Exchange Loss on settlement of Hong Kong/Japan Open Account with The Bank of Japan

Balance, being Surplus for the year

HK$

Sschedule VI

HK$

Commission received from Hongkong &

Shanghai Banking Corporation

2,188,546.83

133,154.00

Exchange Profit from Counterpart Account...

2,106,714.88

190,626.311

Interest at 1% p.a. on Bank Accounts

434,364.00

64,998.42

Provision for Exchange Losses

$ 1,306,592.99

Less: Exchange Losses accepted to date ...

537,366.13

769,226.86

5,110,073.84

HK$ 5,498,852.57

f..

}

OVT.

RESS

HONG KONG