工商業管理處年報 Commerce and Industry Department Annaul Report 1952-1953





HONG KONG

ANNUAL

VERSITY

UNI

OF HON

 

EB

LIBRARY

KONG,

DEPARTMENTAL

REPORTS

1952-53

PRICE: $4

DIRECTOR OF

COMMERCE AND INDUSTRY

:

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF

COMMERCE AND INDUSTRY

FOR THE

FINANCIAL YEAR 1952 - 3

PRINTED AND PUBLISHED BY THE ACTING GOVERNMENT PRINTER, HONG KONG.

Pada

CONTENTS

Paragraphs

1 - 10

I. INTRODUCTION

II. ECONOMIC DIVISION

The Colony's Trade

Locally Manufactured Products

25

*

Import Control Office

11 - 24

26 - 27

Export Control Office

28 - 29

Essential Supplies Office

30 - 32

Price Control Office

33

Economic Intelligence Office

34

Statistical Office

35 - 40

Trade Promotion Office

Trade Advisory Committee

41 - 43

44 - 46

III. REVENUE DIVISION

Revenue

47 - 48

Seizures

49 - 53

Business Registration Office

54 - 58

IV. SUPPLIES DIVISION

General

59

Rice

60 - 64

Sugar

65 - 66

Frozen Meat

67 - 69

Other Foodstuffs

Coal and Coke

Firewood

70

-

71 75

Accounts

V. LEGISLATION

VI. APPENDICES I to XXXII.

i

76

77 - 80

81 - 82

Appendix

No.

LIST OF APPENDICES

I. Comparative Table of Total Values of Imports during April 1951/March 1952 and April 1952/March 1953

II. Comparative Table of Total Values of Exports during April 1951/March 1952 and April 1952/March 1953

III. Comparison of Volume of Trade, Hong Kong, 1952/53 with 1951/52 and 1950/51 (Moving Average 3 months) ...

IV. Values of Imports and Exports, 1952/53

(in million H.K.$)

V. Volume of Hong Kong's Imports and Exports, 1952/53 (in thousand long tons)

VI. Table showing Total Values of Exports of Principal Hong Kong Products (as in Trade Returns) for the year 1952

VII. Import Licences issued from 1st April, 1952

to 31st March, 1953

VIII. Export Licences received and dealt with from 1st April, 1952 to 31st March, 1953.

IX. Comparative table showing number of Essential Supplies Certificates issued for the year ended 31st March, 1953

X. Comparative Table of numbers of Manifests received during April, 1951/March, 1952 and April, 1952/March, 1953

ii

Page

24

24

25

26

27

28

29-

30

31

32

Appendix

No.

LIST OF APPENDICES—Contd.

XI. Comparative Table of numbers of Declara- tions received in April, 1951/March, 1952 and April, 1952/March, 1953

XII. Statistics of locally Manufactured Products exported under Imperial Preference Certificates, Certificates of Origin, and Comprehensive Certificates of Origin for the period from 1st April, 1952 to 31st March, 1953

XIII. Revenue for the period from 1st April, 1952

to 31st March, 1953

XIV. Details of duty from European-type liquor...

XV. Details of duty from Chinese-type liquor

XVI. Details of duties from liquor

XVII. Details of duty from tobacco

XVIII. Details of duty from hydrocarbon oils

XIX. Details of duty from toilet preparations and

proprietary medicines

XX. Details of duty from table water

XXI. Details of liquor licences issued for the period from 1st April, 1952 to 31st March, 1953

XXII. Details of tobacco licences issued for the period from 1st April, 1952 to 31st March, 1953

XXIII. Details of hydrocarbon oils licences issued for the period from 1st April, 1952 to 31st March, 1953

iii

Page

33

34

36

37

38

39

39

40

40

40

41

42

42

LIST OF APPENDICES-Contd.

Appendix

No.

XXIV. Details of toilet preparations and pro- prietary medicines licences issued for the period from 1st April, 1952 to 31st March, 1953

XXV. Details of table waters licences issued for the period from 1st April, 1952 to 31st March, 1953

XXVI. Details of tallyclerk licences issued for the period from 1st April, 1952 to 31st March, 1953

XXVII. Details of arrests and seizures

Page

43

17

43

XXVIII. Details of major seizures of opium

XXIX. Details of main seizures of prohibited

exports (specified articles)

XXX. Details of seizures of dutiable commodities.

XXXI. Details of seizures of petroleum products ...

XXXII. Summarized Accounts, Supplies Division ..

iv

44

1

44

45

46

49

49

51

I--INTRODUCTION

1. It was apparent very early in 1952 that stringent strategic controls introduced in 1951 as a result of the war in Korea would seriously affect the Colony's entrepot trade in that year. Although there was a slight improvement later in 1952, the drop from the 1951 figure amounted to 28%, the total value being $6,678.5 million compared with $5,068.6 million in 1949, $7,503.2 million in 1950, and $9,303.3 million in 1951.

2. Since Hong Kong exists on its trade, this sharp decline undoubtedly had an adverse effect on its economy. The very favourable profits obtainable in 1951 dwindled to such an extent in 1952 that many goods were available at cost. A great deal of capital became tied up in stocks and it was not until the latter half of 1952 that the majority of these stocks was absorbed locally and merchants were able to enter into new commitments. Numerous firms either closed their doors or reduced staff because of dull business. On the whole it was

the general view that 1952 was a depressing year.

3. One of the most significant changes in the normal trend of Hong Kong's trade was the increased export of locally- manufactured products. For the first time in history Indonesia became Hong Kong's best customer. Whereas in 1951 local industry suffered from a severe shortage of raw materials and, in turn, was unable to expand its markets, in 1952 exports of local products to nearby areas improved considerably and accounted for at least 17% of all exports. The actual per-

centage was probably between a quarter and one third and this rapid increase in production since the war was achieved without Government subsidies of any sort and in face of increasingly stiff competition from Japan.

4. Further efforts were made during the year to promote the overseas sale of Hong Kong products. Although there is still much to be done in this respect, some progress was made.

1

The tenth annual exhibition of local products organized by the Chinese Manufacturers' Union was opened by His Excellency the Governor on 15th December; 1952 and ran for twenty-one days. Despite

Despite the difficult trading conditions experienced during 1952, it was the largest and most comprehensive exhibition ever held in the Colony and covered an area of 73,604 sq. ft. on a prominent site in Kowloon. On show were the products of 156 manufacturers in 422 stalls, 62 more than in 1951. Approximately 800,000 people attended. Another feature of the 1952 exhibition which attracted considerable attention was the display of locally made Coronation souvenirs.

5.

Although it was unfortunate that Hong Kong could not be represented at the E.C.A.F.E. Trade Promotion Conference held in Manila in February/March, 1953, Hong Kong sent two delegates to the E.C.A.F.E. conferences held at Bandung, Indonesia, in January/February, 1953. In February, 1953, the Chinese Manufacturers' Union participated in the Philippines International Trade Fair. During the year several trade delega- tions from other countries visited the Colony and, in some cases, had prolonged conferences with officers of the department.

6. Hong Kong was again represented in the Common- wealth Section of the British Industries Fair held at Earl's Court, London, between 5th and 16th May, 1952. A further edition of the Hong Kong B.I.F. Directory was published in time for despatch to London for the 1953 Fair as well as a new Coronation issue of the Commercial Guide to Hong Kong. Considerable improvements were introduced into both publica- tions, particularly the latter which was well received by the trade and by foreign governments. The Guide was edited and produced by officers of the department in collaboration with a local advertising and publicity firm. The department appre- ciates the assistance rendered by other Government departments and commercial firms which supplied additional data.

7.

Revenue collected in the financial period under review was the highest total on record. The continued unsettled con- ditions brought about by controls over strategic goods placed a considerable burden on the entire staff of the department. A

2

new office was opened to deal with business registration and this in turn brought added responsibilities with the inevitable problems of a new organization. On the 15th February, 1953 the Commissioner of Police kindly agreed to second a senior police officer to the department to advise on the re-organization of the Preventive Service. Senior Superintendent of Police G. D. Binstead, M.B.E., was attached for an initial period of six months.

8. Scarcity of rice and increased prices at source con- tinued to be a matter of concern to the Supplies Division. It continued to be necessary during the year to supplement Government-to-Government contracts by purchases from com- mercial channels, but by December, 1952 official contracts which would ensure adequate stocks and reserves in 1953 had been negotiated with the Governments of Thailand and Burma at prices similar to those ruling in 1953. The Supplies Division moved from the Mercantile Bank Building to temporary accom- modation on the second floor of the Chung Tin Building on the 14th July, 1952.

9. During the year close liaison continued to be main- tained with the Director of the Hong Kong Office in London and with the Hong Kong Government Representative in Tokyo. Liaison was also preserved with the various trade commissioners and foreign consular officials in Hong Kong.

10. Tribute must be paid here to all members of the Trade Advisory Committee who devoted much time and energy in assisting the department in its work. Through them the best possible relations were maintained with commercial firms. The unofficial members who served so well on this committee during the year under review were Messrs. J. D. Clague, C.B.E., M.C., U Tat Chee, O.B.E., Tse Yu Tsuen, and G. W. Sewell. Thanks are also due to officials and members of the various Chambers of Commerce and the Chinese Manufacturers' Union who did a great deal to assist officers of this department in many complex problems which confronted them and to provide representatives for the various committees. The department is also grateful

3

to Committee members of the Hong Kong General Chamber of Commerce who once again made available to the Hong Kong British Industries Fair Committee, the invaluable services of its Secretary, Mr. J. B. Kite.

II-ECONOMIC DIVISION

THE COLONY'S TRADE

General

11. Comparative figures of monthly imports and exports for April, 1952 to March, 1953 are shown in appendices I and II, but the remarks which follow relate to trade in the calendar year 1952 unless otherwise stated.

12. The strict controls imposed in 1951 on the import and export of goods of a strategic nature remained in force through- out the year and were largely responsible for the considerable decline in the Colony's trade which was reduced by 28% from $9,303.3 million in 1951 to $6,678.5 million in the year under review. The reduction in trade was also noticeable, though to a lesser extent, in the tonnage of cargo imported and exported, which showed a fall of 13% from the 1951 total of 5,845,486 tons to 5,074,674 tons in 1952. The difference in the percentage drop between the value and tonnage figures is accounted for by the inflated prices which prevailed during 1951.

13. Both import and export totals recorded a large reduc- tion in value as compared with 1951 totals. Imports, valued at $4,870.3 million in 1951, were reduced by 22% to $3,779.5 million, while exports recorded a fall of 35% from the 1951 total of $4,433.0 million to only $2,899.0 million in 1952.

14. The trading position improved somewhat as the year progressed. For imports the improvement was slight, the totals being $1,854.8 million in January to June and $1,924.7 million in July to December. For exports however, there was a con- siderable increase in value, the total rising from $1,309.8 million for the first six months to $1,589.2 million for the second half of the year.

4

15. The adverse visible balance of trade during 1952 was $880.5 million which compares with $437.3 million in 1951 and $72.1 million in 1950.

16. The principal sources of the Colony's imports in 1952, in order of importance, were China, Japan, United Kingdom, United States of America, Thailand, Malaya, Italy and Germany, while the chief markets for Hong Kong's exports were Indonesia, China, Malaya, Thailand, Formosa, Japan, and the United States of America. For the first time China occupied second place in the Colony's export trade.

17. The principal commodities imported during the year, in order of value, were in millions of dollars: textile yarns and fabrics, $502.3; cereals, $280.6; fruits and vegetables, $239.9; textile fibres, $227.1; animal and vegetable oils, $150.7; medicinal and pharmaceutical products, $148.9; animal and vegetable crude materials, $146.5; scientific instruments, photo- graphic and optical goods, watches and clocks, $139.5; live animals for food, $137.0; and chemicals, $132.5. The principal items exported were, in millions of dollars: textile yarns and fabrics, $547.3; clothing, $223.1; medicinal and pharmaceutical products, $198.7; fruits and vegetables, $186.3; animal and vegetable crude materials, $163.8; chemicals $138.6; metal manufactures $122.5; miscellaneous manufactures $114.1; and animal and vegetable oils, $106.3.

18. A graph showing the Colony's trade by value on a three months moving average basis for the years 1950/51, 1951/52, and 1952/53 is at appendix III. Graphs showing the Colony's total trade by value and by volume for 1952/53 and trade with China are at appendices IV and V.

China

19. The restrictions mainly affected the Hong Kong-China trade which steeply declined from $2,466.9 million in 1951 to $1,350.3 million in 1952, a fall of 45%. The greater part of this reduction was in respect of exports to China, which fell

5

from the abnormally high level of $1,603.8 million in 1951 to $520.0 million in 1952, or 68%, while imports from China at $830.3 million, compared with $863.1 million in 1951, were lower by 4%.

United Kingdom

20. Imports from the United Kingdom, valued at $619 million in 1951, declined by 24% to $470.4 million in 1952. A large reduction was also recorded for exports to the United Kingdom, being $83.4 million in 1952 as compared with $214.6 million in 1951, a fall of 61%. The value of cotton piece goods exported to the United Kingdom fell by over $35 million; while wood oil dropped by over $30 million, clothing by over $13 million, and brass and copper scrap by $9 million.

Japan

21. Increased values were recorded for imports from Japan, the totals being $392.2 million in 1951 and $482.2 million in 1952, a rise of 23%. Exports to Japan, however, showed a reduction in value, falling from $192.5 million to $123.6 million, a difference of 36%.

22. Imports from Japan had to be kept down artificially during the earlier part of the year because of the Sterling Area's adverse balance of payments with Japan. Measures taken in Hong Kong to reduce the adverse balance included a complete suspension of import licences for Japanese cotton yarn and cotton piecegoods with effect from 17th April, 1952 and for various other articles* from 1st December, 1952. Some of these articles were also manufactured in Hong Kong and conse- quently local industry was indirectly given a temporary respite from Japanese competition particularly in the local market. The import of Japanese rayon was permitted only for local consumption and the ban on the export of Japanese origin goods of any description to the Scheduled Territories (Sterling Area) first initiated on 14th February, 1952 was maintained.

*Stoneware and porcelain household articles, household utensils of iron and steel and enamelware, bicycles and parts, toys and games, fountain pens and propelling pencils, cigarette lighters and cases.

6

Indonesia

23. Trade with Indonesia increased from $335.1 million in 1951 to $555.9 million in 1952. The bulk of this trade was in respect of exports to Indonesia, which were valued at $528.0 million as compared with $244.8 million in 1951. Indonesia was therefore the Colony's best customer in 1952. It was in parti- cular one of the principal markets for Hong Kong's own manu- factures and for re-exports of Japanese goods. Imports from Indonesia were reduced in value from $90.3 million in 1951 to $27.9 million in the year under review, the main commodities affected being mineral oils which dropped by $45 million, animal and vegetable oils by $6 million and chemicals and pharma- ceutical products by $6 million.

United States of America

24. Hong Kong's imports from the United States of America were valued at $221.1 million, or 41% lower than the 1951 total of $373.5 million. This considerable decline is attributable to the Colony's own import controls over strategic materials and to a corresponding control in the United States of America which extended in many cases even to non-strategic materials. Exports to the United States of America, valued at $162.5 million in 1951, declined by 30% to $113.5 million in 1952 mainly due to the United States Government's Foreign Assets Control Regulations against the import from Hong Kong and other places of goods of Chinese origin. By the end of 1952 these regulations were having a marked adverse affect on many of the Colony's industries, particularly those of the cottage or handicraft variety, and a considerable number of workers became unemployed. In October a senior official of the U.S. Treasury arrived in the Colony and, after prolonged negotiations with officials of this department, agreement was reached on 10th January, 1953 which governed the procedure to be adopted for the importation into the United States of America of Chinese-type merchandise manufactured or processed in Hong Kong. A special and complicated procedure, involving the issue of Comprehensive Certificates of Origin, had to be devised to meet the requirements of the United States Government. Legislation entitled The Exportation (Certificate of Origin)

7

Regulations 1953 was enacted on 9th January, 1953. Protracted negotiations then ensued on each particular commodity and, by 31st March, 1953, the following eight groups of commodities had been agreed for export to the United States of America under Comprehensive Certificates:

Salted dried fish

Preserved plums

Cotton waste

Tungsten ores and concentrates

Ivory manufactures

Hardwood furniture, including camphorwood chests Water chestnuts

Made-up silk garments.

LOCALLY MANUFACTURED PRODUCTS

25. Reference has been made in the introduction to the significant exports of goods manufactured in Hong Kong. A table showing the values of the main items exported during 1952 is at appendix VI.

IMPORT CONTROL OFFICE

26. The total number of import licences issued during the year ended 31st March, 1953 was 90,662 compared with 76,670 in the previous year. A breakdown by countries is given at appendix VII. This office worked under heavy pressure during most of the year and extra staff had to be provided during part of this period.

27. Import control over strategic articles was further extended on 25th June, 1952, by the Importation (Prohibition) (Specified Articles) (Amendment) (No. 2) Order and, again, on 26th September, 1952 when the latter order was replaced by the Importation (Prohibition) (Specified Articles) Regulations, 1952. Import licensing in respect of other commodities subject to control under the Import Control Order 1947 remained unchanged though licences were granted more freely except for goods from Japan. (See paragraph 22).

8

EXPORT CONTROL OFFICE

28. The total number of export licences issued during the year ending 31st March, 1953 was 164,026, an increase of 50,000 compared with the previous year. A breakdown by groups of commodities and months is shown at appendix VIII. The heavy increase in the number of applications for licences and the consequent queues which formed outside the office neces- sitated a temporary increase in staff and certain structural alterations which were completed in August, 1952.

29. In conformity with the United Kingdom and other colonial territories, export control over strategic articles was further extended on 25th June, 1952 by the Exportation (Prohibition) (Specified Articles) (Amendment) (No. 2) Order and again on 26th September, 1952 when the latter order was replaced by the Exportation (Prohibition) (Specified Articles) Regulations, 1952. Export control over other commodities was changed on 25th June, 1952 by the Prohibited Exports (Amend- ment) Order 1952 which replaced and consolidated previous orders but otherwise did not greatly affect licensing policy.

ESSENTIAL SUPPLIES OFFICE

30. The number of Essential Supplies Certificates issued in the period under review was 13,991 compared with 14,613 in the preceding year. Though fewer certificates were issued than last year there was a sharp rise over the last six months. of 1952 compared with the first six months. Appendix IX gives the number of certificates issued for various countries of supply.

31. These certificates are issued by the department for strategic commodities and certify that they are for use in the Colony and will not be re-exported. Although the system has worked fairly well since its inception in December, 1950, the introduction of legislative backing on 22nd February, 1952 (The Emergency (Essential Supplies) Regulations 1952) further enhanced the value of the certificates in that it enabled Govern- ment to prosecute firms for infringements of the regulations.

9

However, the biggest deterrent continued to be the denial of further certificates to those firms which failed to honour their obligations. Under this system essential supplies of a strategic nature for use in the Colony came forward satisfactorily during the year from most countries except the United States which not infrequently failed to release supplies, reduced the quantities, or imposed considerable delay on deliveries.

32. The scope of the controls in regard to the retail trade was expanded from time to time and tended to become unneces- sarily complicated. On the advice of the Trade Advisory Committee they were considerably simplified on 25th November, 1952. Towards the end of 1952 overstocking in the case of some commodities led to the temporary suspension of Essential Supplies Certificates for these goods. The operating efficiency of this office was considerably reduced during the year by frequent changes of staff.

PRICE CONTROL OFFICE

33. Price Control on retail sales was maintained through- out the year on many types of foodstuffs. Controls over pharmaceuticals were finally abolished on 10th October, 1952 and controls over foodstuffs were progressively removed until, by 31st March, 1953, only 66 items remained. Since most of these could be purchased under the controlled prices the complete abolition of all price control was planned for 10th April, 1953.

ECONOMIC INTELLIGENCE OFFICE

34. This office continued to be responsible for the collation of economic intelligence on matters affecting the department and for the policy of operating certain quotas and oil controls includ- ing ships' bunkering.

STATISTICAL OFFICE

35. The main work of the Statistical Office is in respect. of trade statistics, in the compilation of which 600,526 import and export declarations were dealt with during the year. The

10

monthly trade totals were invariably available within a few days of the end of each month and trade returns were printed and available to the public about three weeks later. In this respect Hong Kong compares very favourably with most other countries.

36. The Imports and Exports Classification List, based on the Standard International Trade Classification prepared by the United Nations Secretariat, and brought into use in Hong Kong on 1st January, 1952, was revised as from 1st January, 1953 and expanded from 801 to 920 items in order to meet local requirements more effectively and to incorporate certain sug- gestions made by the United Nations Secretariat which incidentally complimented the department on the manner and speed in which it brought the Standard International Trade Classification system into use.

37. Certain alterations were made in the office procedure whereby the handling of trade declarations was further speeded up. Revenue collected by the Trade Statistics Section in respect of declarations and special services to firms amounted to $606,576.

38. Tables showing the manifests and declarations received during the years 1951/52 and 1952/53 are at appendices X and XI.

39. Apart from trade statistics, the statistical office is also concerned with routine services for other departments, including the Royal Observatory, Police Force, Urban Services, Social Welfare Office, and Medical Department. For them 141,238 Hollerith cards were punched during the fiscal year. Various statistical returns were completed for United Nations organiza- tions and the office also compiled the monthly statistical supple- ment to the Gazette and the monthly retail price index. Special analyses of meteorological observations in respect of Kai Tak Airport and its approaches were made for the Royal Observa- tory and a review of wholesale price movements of fish and vegetables was prepared for the Marketing Department,

11

40. The retail price index figures for the end of each quarter, on the basis March 1947-100, were as follows:

Food

Rent

Clothing

Fuel, Light & Cleaning:

(a) Fuel

June September December March

1952

1952

1952

1953

125

131

124

121

103

103

103

103

109

108

101

99

123

118

110

104

(b) Electric Light

69

69

65

65

+

(c) Cleaning

94

94

93

92

Other items:

(i) Education

132

132

132

132

(ii) Tobacco & Cigarettes

113

113

113

113

(iii) Doctors & Medicines

110

110

110

110

(iv) Fares

100.

100

100

100

(v) Household Equipment

120

115

114

118

(vi) Hairdressing

121

124

123

123

(vii) Newspapers & Stationery

193

193

193

173

(ix) Rates

(viii) Shoe Repairs

General Retail Price Index

86

86

79

81

+

100

100

100

100

119

123

118

115

TRADE PROMOTION OFFICE

41. This office did not make as much progress as expected mainly because of the increased work caused by the introduction of Comprehensive Certificates of Origin (see paragraph 24). For the period 1st April, 1952 to 31st March, 1953 the following certificates were issued:

Certificates of Origin

Comprehensive Certificates of Origin

Imperial Preference Certificates

Revenue collected totalled

28,756

471

20,146

$302,835

A table showing the breakdown of such certificates by commodities is at appendix XII.

12

42. A trade enquiries bulletin was issued monthly and, by the end of the financial year under review, had reached a circulation of 1,400 copies. It was distributed free to local and overseas business houses.

43. Wherever possible the office endeavoured to arbitrate in trade disputes. It was also responsible for handling locally- manufactured coronation souvenirs through the Coronation Souvenirs Sub-committee. Legislation, entitled the Importation (Prohibition) (Coronation Souvenirs) Regulations 1952, and the Exportation (Prohibition) (Coronation Souvenirs) Regulations, 1952, was enacted on 28th November, 1952 to control the trade in such souvenirs.

TRADE ADVISORY COMMITTEE

44. This committee which was formed during the previous year is constituted as follows:

Chairman: Assistant Director (Economic) Commerce

and Industry Department

1 representative from the Hong Kong General

Chamber of Commerce

1 representative from the Chinese General Chamber

of Commerce

1 representative from the Chinese Manufacturers'

Union

1 representative from the Federation of British

Industries

Secretary:

Economic Administration Officer.

45. It met twelve times during the year and its advice to the department on a considerable range of topics was invaluable.

46. There were two sub-committees:

(i) The Oils Sub-Committee

This committee which had offered sound advice on the control of oil in 1951 and early 1952 ceased to function on 21st November, 1952 when the con- trols, as a result of a complete decline in oil smuggling, became unnecessary.

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REVENUE

(ii) The Trade Classification Sub-Committee

This committee was formed in August, 1952, and was composed of members from both Chambers of Commerce and from the Chinese Manufacturers' Union in addition to an official Chairman and Secretary. It was responsible for advising the department on amendments to the Trade Classifica- tion List and completed its work on 15th Novem- ber, 1952. As a result of its valuable assistance the revised classification list was brought into force on 1st January, 1953.

III-REVENUE DIVISION

47. The total net revenue collected created a new record figure of $90,061,428.95 an increase of over $44 millions on the previous highest total in 1951/52. The major source of revenue was again duty on tobacco which raised $35,206,290.90. Duties on liquor and hydrocarbon oils were also the next two most important items fetching $18,715,593.49 and $15,232,657.82 respectively.

48. Revenue generally showed no outstanding variation compared with the previous year except from tobacco and for- feitures. A reduction of $2 millions in duty on tobacco was partly compensated by an increase of nearly $24 millions from the sale of seizures. Severe preventive measures, strengthened by an amending ordinance (No. 21 of 1952) to the Importation and Exportation Ordinance (cap. 50) referred to in paragraph 81, resulted in more seizures than previously. In addition, revenue from business registration tax, a new item, produced $5,757,927.

SEIZURES

49. Seizures of dutiable commodities were, in general, greater than in the previous year. The number of cigarettes was nearly 11 millions compared with 4 millions and nearly 31,000 gallons of fermenting materials were seized compared with the low figure of about 3,000 gallons.

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50. Seizures of prohibited articles are detailed in appendix XXIX. One of the significant features of this return compared with 1951/52 was the drop in petroleum products from 90,000 gallons to about 1,000 gallons because of the lack of demand. The list of items shows the range of commodities which smugglers attempted to export illegally from the Colony.

51. During the period under review 980 persons were arrested; of these 911 were convicted and a further 33 absconded with estreatment of bail. In addition, 3,996 seizures, compared with 2,602 in the previous year, were made without arrests.

52. The construction of a new revenue station, combining facilities for immigration and port health services, was begun early in 1953 at the border post at Lo Wu. It will greatly assist the work of the preventive service at this important point of entry into the Colony.

53. The two new patrol launches have done sterling service in maintaining a continuous watch at both entrances to the harbour. Their vigilance partly accounts for the increases in seizures. No changes in the establishment of the Preventive Service occurred.

BUSINESS REGISTRATION OFFICE

54. The Business Regulation Ordinance (No. 14 of 1952) became law on 15th May, 1952, and the Business Registration Office was established and opened for public business on 19th May, 1952.

55. Briefly the new ordinance required every person carry- ing on an activity for the purpose of gain to possess a business. registration certificate for which the annual fee was either $200 or $600 depending on the number of separate premises in which the business was carried on or the number of separate businesses in which the applicant was engaged. Provision was made to exempt certain categories including hawkers. These categories were later extended by Business Regulation (Exemp- tion) Rules 1952, issued on 12th August, 1952, to cover farmers,

15

fishermen, and others occupied in primary production. Further provision authorized the remission of the fees in whole or part on the grounds of hardship provided application was made during certain statutory periods.

56. The response to the requirement of initial registration was slow at first and it became necessary to publicize widely the requirements of the new ordinance. In August 1952 a great volume of correspondence flooded into the office and the staff, although working long hours seven days a week, was unable to dispose of it for several months. The original estimate of 30,000 businesses in the Colony was greatly exceeded and the number finally topped 50,000.

57. The first business registration certificate was issued on 28th August, 1952 and the issue of certificates continued through- out the year as fast as the staff could manage. By 31st March, 1953 the position was as follows:

Applications registered Demand notes issued Certificates issued

Revenue collected

51,440

32,731

25,460

$5,757,927

58. This work was accomplished by a small staff of one experienced Executive Officer Class II, an experienced shroff, four new Business Tax Inspectors, and ten temporary clerks. The establishment of the office was not completely filled until February 1953.

GENERAL

IV-SUPPLIES DIVISION

59. The Department's main trading activities continued in rice, sugar, frozen meat, coal, and firewood. A limited range of other foodstuffs was held in stock. Ration schemes were operated for rice, sugar and butter. Commercial imports of butter, margarine, canned meats, corned beef, and bacon and ham were restricted to the Colony's quota for these commodities, allocated in the form of sub-quotas to importers under a variety of arrangements.

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RICE

60. 164,382 metric tons of rice, all of edible grades, were imported on Government account; sources and percentages are illustrated in the table below:

Thailand

Burma

U.S.A.

Italy

Indo-China

Brazil

Metric Tons

Percentage

112,946

68.7

30,430

18.5

8,087

4.9

7,797

4.8

2,669

1.6

2,454

1.5

164,383

100.0

Stocks at the end of the year, arrived or contracted for delivery, were adequate.

61. Commercial imports, mainly from Thailand, amounted to 119,765 metric tons; sources are given below:

Edible grades Other grades

Metric Tons

Metric Tons

Thailand

Indo-China China

81,969

19,900

7,610

2,440

7,477

369

97,056

22,709

Exports,

Total rice imports were therefore 283,518 metric tons. which continued to be prohibited except in special cases, totalled 998 metric tons.

62. Several changes in retail prices were made during the year, mainly owing to the increased f.o.b. price of rice. The increase of price from 65 cents per catty to 80 cents per catty for Thai 5% broken white rice was a measure of the in- crease for the better qualities. At the other end of the scale the price of Thai A1 Special 100% broken rice had to be increased from 45 cents per catty to 53 cents.

17

63. Government rice continued to be sold through one wholesale agent either indirectly to the rationed population through official retail shops, which numbered 196 at the end of the year, or directly to institutions and organizations. The daily ration remained at 7.2 taels (9.6 ozs.) per head. A bonus issue of 1 catty per head every ten days to those who wished to take it up ceased in April 1952. Rations are issued once in a 10-day period; whereas formerly a person had to take up his full issue or none at all, from February 1953 those who wished were permitted to take up a smaller quantity. The total quantity of rice issued through retail shops was 115,808.54 metric tons, a decrease of 30,216.46 tons compared with the previous year. Issues to institutions, etc. totalled 6,529.15 tons, 2,159.07 tons less than the previous year. The greater availability of commercial stocks which were more attractive in quality though also more expensive, brought about a decrease in issues of Government rice.

64. Two godowns built by Government in Kowloon were operated satisfactorily and compared favourably with other godowns in respect of out-turn losses; they amounted to 0.44%, whereas the general average for all storage was 0.52%. This figure in turn compared favourably with 1.79% for the previous year partly because of a rapid turnover of stocks. There was a satisfactory general improvement of out-turn from all go- downs.

SUGAR

65. The sugar requirements of the Colony continued to be procured by Government through the Ministry of Food, and the Taikoo Sugar Refining Co. Ltd. processed raw sugar to meet the Colony's normal refined sugar needs. The wholesale Government price of sugar was progressively reduced through- out the year, until, at the end of the year, it stood at 41 cents per pound for refined and 37 cents for raw sugar. By the end of the year, Government stocks of sugar had been reduced from 10,886 tons to 5,153 tons, because more regular deliveries enabled smaller stocks to be held.

18

66. The system of individual rationing and of monthly allocations to industrial users continued during the year, but individual rations of sugar were taken up to only a small extent. As supplies were readily available, additional issues were made for sale to manufacturers and local consumers. In January 1953, supplies were sufficiently plentiful and prices stable enough to warrant the removal of price control on sugar, though an unofficial control was maintained with the assistance of wholesalers and through the rationing system.

FROZEN MEAT

67. The main frozen meat requirements of the Colony continued to be met by Government purchase, though the method was changed at the end of 1952 to direct purchase by tender from Australia and New Zealand in place of purchases through the Ministry of Food. This change gave greater freedom of choice in qualities of meat but coincided with an increase in the price of meat from Australia which had not been passed on wholly to the public by the end of the year.

68. From September 1952, imports of frozen meat from India by commercial firms trebled in quantity. As ample supplies of frozen meat were already available in the Colony, imports from this source were prohibited temporarily, but the effect of this prohibition was not felt till after the end of the year under review.

69. The pattern of imports of live cattle and pigs for slaughter, which constitute the main meat supply of the Colony, was unchanged throughout the year.

OTHER FOODSTUFFS

70. The Department held and turned over reserve stocks of certain other essential foodstuffs, import of which was not under restriction.

COAL AND COKE

71. Coal and coke continued to be bought solely by Govern- ment during the year, save for certain marginal supplies. Imports on Government account totalled 210,239 tons, which was

19

52,905 tons more than the previous year. The sources of supply and total quantities imported in tons were as follows (the previous year's figures being shown in brackets):

India Indonesia

Coal

147,076 (114,069)

Coke

1,224 (1,429)

3,259 ( 32,963)

China

37,521 ( 7,977)

(

Australia

14,280 (

(

South Africa

6,059 (

}

275 (100)

Japan

(

159)

(

-)

United Kingdom

(

}

304 (267)

100 (

(

)

Indo-China

72. Supplies from India were on the whole regular, though congestion at Calcutta entailed the

the opening of a temporary yard when delayed shipments arrived in quick succession at the end of 1952.

73. 164,331 tons of coal and 2,177 tons of coke were delivered to consumers compared with 164,753 and 2,680 respectively for the previous year. Coal was chiefly consumed as ships' bunkers and by industry, which absorbed approximately 76% of sales. Household coal represented less than 1% of sales.

74. Reductions in freight rates during the year enabled the price of Indian coal ex yard to be reduced from $139 per ton to $120 per ton in November, which price was maintained to the end of the year.

75. During the year 87,381 tons of coal were imported on their own account by electricity and gas companies and by the Green Island Cement Co., Ltd., all of which maintained their own reserve stocks.

FIREWOOD

76. The department kept stocks of firewood for release in times of local shortage of commercial supplies, an eventuality which did not arise during the year under review. A ration of

20

firewood was available to persons who required it until rationing was suspended in April 1953. 130,042 tons of firewood from Borneo, 97,358 tons from Malaya, and 29,112 tons from China, and small lots from other sources came in during the year. There were signs towards the end of the year that supplies from China were increasing but there was a decrease in local consumption due to the increased use of kerosene for cooking.

ACCOUNTS

77. The accounting system operated smoothly during the year and full accounts were produced monthly for administrative purposes in addition to the annual accounts prepared for audit and publication.

78. The following table shows the comparative turnover for 1951/52 and 1952/53 to the nearest million dollars:

Food

Fuel

Japan trade

1951/52

$184,000,000

25,000,000 323,000,000

1952/53

$161,000,000

22,000,000

79. The net surplus on the transactions of the division during the year amounted to $3,523,253.03, which is available for transfer to the Colony's Development Fund in accordance with the Legislative Council Resolution of 19th September, 1951.

80. 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 XXXII.

V-LEGISLATION

81. New regulations and numerous amendments to the subsidiary legislation made under the Importation and Ex- portation Ordinance (cap. 50) were enacted during the year and have been mentioned in the appropriate sections of this report. In addition, the ordinance itself was amended on 27th June, 1952, by the Importation and Exportation (Amendment)

21

Ordinance 1952 which enabled regulations instead of orders to be made under the ordinance thereby facilitating the proposed consolidation and simplification. of trade legislation. In ad- dition, the Registration-of Imports and Exports Ordinance (cap. 51) was repealed and its functions taken over by the Importation and Exportation Ordinance. Other amendments to the Ordinance included the incorporation of certain provisions of the Emergency (Exportation) (Miscellaneous Provisions) Regulations 1951 and alterations to the existing provisions in the Ordinance relating to forfeiture.

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

Ordinance 14/52 Supplement 1

of 1952

Ordinance No. 21 of 1952

G.N. No. A 79 of 1952

G.N. No. A 81 of 1952

G.N. No. A 99 of 1952

G.N. No. A111 of 1952

G.N. No. A112 of 1952

G.N. No. A113 of 1952

G.N. No. A114 of 1952

G.N. No. A131 of 1952

G.N. No. A169 of 1952

|

Business Regulation Ordinance, No. 14 of 1952. Business Regulation Rules, 1952.

Importation and Exportation (Amend- ment) Ordinance, 1952.

Public Revenue Protection Ordinance -Order.

Dutiable Commodities Ordinance- Resolution.

Dutiable Commodities Ordinance--- Amendments to the Regulations.

Exportation (Prohibition) (Specified Articles) (Amendment) (No. 2) Order.

Exportation (Prohibition) (Specified Articles) (Amendment) (No. 2) Order.

Prohibited Exports (Amendment) Order.

Emergency (Exportation) (Mis- cellaneous Provisions) Regulations,

1951-Amendment.

Business Regulation Ordinance- (Exemption) Rules.

Exportation (Prohibition) (Specified Articles) Regulations.

22

G.N. No. A170 of 1952

G.N. No. A201 of 1952

G.N. No. A202 of 1952

G.N. No. A205 of 1952

G.N. No. A 4 of 1953

G.N. No. A 5 of 1953

1

Exportation (Prohibition) (Specified Articles) Regulations.

Importation (Prohibition) (Coronation Souvenirs) Regulations.

Exportation (Prohibition) (Coronation Souvenirs) Regulations.

Dutiable Commodities Ordinance- Amendment to duties on Hydrocarbon Oils.

Exportation (Certificate of Origin) Regulations, 1953.

Importation and Exportation Or- dinance-Scale of fees.

H. A. Angus,

Acting Director of Commerce and Industry.

23

APPENDIX I

Comparative Table of Total Values of Imports during April, 1951/March, 1952 and April, 1952/March, 1953,

$

$

April May

1951

427,833,190 April

1952

284,615,680

427,541,530 May

300,788,983

June

404,437,243 June

268,168,957

July

361,729,694 July

306,669,542

August

317,560,388

August

279,711,070

September

>>

331,593,858

September

340,334,571

October

}}

418,801,231

October

308,996,667

November

389,904,915

November

301,153,345

13

December

457,506,940

December

387,790,820

January 1952

384,813,064

January 1953

377,629,705

February

331,961,187

February

325,804,619

**

March

*

284,483,598

March

385,163,533

サラ

Total

4,538,166,838

Total

3,866,827,492

Average per month ... 378,180,570

Average per month .....

322,235,624

APPENDIX II

Comparative Table of Total Values of Exports during April, 1951/March, 1952 and April, 1952/March, 1953.

$

$

April May

1951

June

>

496,806,255 April 408,139,334 May 373,563,938

1952

215,717,480

33

231,569,036

June

214,067,499

July

*

273,205,012

July

261,618,624

}}

August

#

276,953,643

August

**

228,561,480

September

73

260,799,791

September

>>

284,568,739

October

>>

274,387,924

October

262,227,179

20

November

*

241,141,933

November

258,442,631

#

December

279,434,959

December

>>

293,757,547

January 1952

196,736,857

January 1953

262,456,106

February

7)

+

211,381,677

February

228,121,613

March

>>

240,361,315

March

285,035,469

"

Total

3,532,912,638

Total

3,026,143,403

Average per month...

294,409,387

Average per month

252,178,617

24

APPENDIX III

$ MILLION

1,100

1,000

COMPARISON OF VOLUME OF TRADE, HONG KONG, 1952/53 WITH 1951/52 AND 1950/51 (MOVING AVERAGE 3 MONTHS).

REF. NO. G. 209/255

900

800

700

600

500

400

300

200

100

/1950/51

1950/51

1951/52

1952/53

NOTE: The curve is plotted on a moving average of the figures for 1952/53 and of the figures for the corresponding months in 1951/52 and 1950/51. Thus the figures plotted for April are the average of the figures for March to May.

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

$ MILLION

600

APPENDIX IV

300

VALUES OF IMPORTS AND EXPORTS, 1952/53 (IN MILLION H.K. $)

Total Imports

Total Exports

Imports from China - Exports to China

400

300

200

100

T

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

Thousand

Long Tons

600

500

400

300

200

100

APPENDIX V

VOLUME OF HONG KONG'S IMPORTS AND EXPORTS, 1952/53 (IN THOUSAND LONG TONS)

Total Imports Total Exports Imports from China Exports to China

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APPENDIX VI

Table Showing Total Values of Exports of Principal Hong Kong Products (as in Trade Returns) for the year 1952.

Cotton yarns

Cotton singlets

Shirts

Enamelled household utensils

Electric torches

137,516,394

95,255,368

49,240,650

44.239,244

40,043,484

Cotton piece goods..

26,088,508

Footwear.............

17,879,164

Torch batteries

13,931,631

Fruits and fruit peels, preserved, glacéd or crystallized

12,757,068

Lacquers, varnishes and prepared paints

9,800,766

Metal lanterns

6,643,937

Household utensils of aluminium...

6,012,741

Vacuum flasks and jugs, complete

Iron and steel bars and rounds.

Plastic articles

Torch bulbs

Matches

5,788,999

5,429,371

5,135,730

4,054,292

2,591,697

Cigarettes

1,992,241

Fish and fish products in airtight containers...

1,675,495

Jams, marmalades, fruit jellies and unfermented fruit juices

124,842

Total

486,201,622

Average per month

40,516,802

28

APPENDIX VII

Import Licences Issued from 1st April, 1952 to 31st March, 1953.

Austria

Argentina

700

6

Iraq

3

Japan

33,408

Australia

996

Jamaica

1

Aden

1

Korea (South)

832

Afghanistan

18

Luxembourg

9

Arabia

3

·

Malaya

802

Algeria

1

Mauritius

20

Belgium

1,139

Macao

453

Borneo

106

Madagascar

3

Belgium Congo

2

Mexico

12

Burma

54

Morocco

1

Brazil

20

Norway

510

Czechoslovakia

730

New Zealand

16

China

139

Portugal

327

Canada

1,496

Poland

106

Cuba

18

Philippines

165

Ceylon

8

Palestine

3

Chile

0

Pakistan

28

Cyprus

1

Persia

2

Denmark

622

Paraguay

1

Egypt

198

Peru

5

Eritrea

Spain

102

East Africa

9

Switzerland

2,287

France

2,847

Sweden

1,390

Formosa

386

South Africa

174

Finland

58

Syria

3

French Indo-China

291

Thailand

854

Germany

9,658

Turkey

38

Greece

5

U.S.S.R.

49

Holland

4,452

U.S.A.

4,743

Hungary

42

United Kingdom

15,887

Italy

3,063

Uruguay

India

1,237

Venezuela

Iran

8

West Indies

Indonesia

104

Yugoslavia

DO 1 CON

2

3

1

3

Iceland

2

TOTAL:-

90,662

29

APPENDIX VIII

Export Licences received and dealt with from 1st April, 1952 to 31st March, 1953.

Month

Prohibited Exports

Restricted Exports (Exchange)

Restricted Exports

(Short

supply and

General Exports

Export of Foodstuffs

Export to Japan

Export of Gold,

Total

Diamonds

and Silver

others)

April, 1952

2,041

6,835

1,888

361

637

62

11,824

May, 1952

2,412

7,847

1,996

322

547

62

13,186

June, 1952

1,600

6,719

1,979

275

932

39

11,544

July, 1952

..

3,114

8,499

1,651

331

837

45

14,477

August, 1952

2,442

8,657

1,625

345

772

54

13,895

September, 1952...

2,428

8,656

2,402

442

898

75

14,901

October, 1952........

1,803

8,216

3,302

422

838

61

14,642

November, 1952......

2,215

9,282

2,826

457

744

61

15,585

December, 1952......

2,220

10,785

2,302

498

840

72

16,717

January, 1953....... ...

1,288

7,405

359

1,737

435

790

56

12,070

February, 1953

183

6,408

892

1,892

277

759

45

10,456

March, 1953.....

238

9,554

1,141

2,561

349

821

65

14,729

Total....

21,984

98,863

2,392

26,161

4,514

9,415

697

164,026

Monthly Average: 13,669

30

APPENDIX IX

Comparative table showing number of Essential Supplies Certificates issued for the year ended 31st March, 1953.

From 1st April |

1951 to 31st

March 1952

Form 1st April

1952 to 31st March 1953

Supplying Country

Algeria

1

Australia..

242

265

Austria

13

11

Belgium

343

240

Brazil

3

Brunei.

1

Burma.

I

Canada

357

167

Ceylon...

1

2

Curacao

1

Cyprus....

1

Czechoslovakia

1

1

Denmark.....

27

44

Dutch East Indies...

3

Finland

1

France

268

148

French Indo China

4

Germany

540

734

Holland

214

174

Hong Kong

112

India

9

3

Indonesia

1

5

Ireland

1

Italy

103

50

Japan

3408

2864

Luxembourg

6

8

Macau.

1

Mexico...

13

New Zealand

1

North Borneo (British).

41

62

Norway

Philippines

Poland..

221

22

26

27

30

2

Portugal

3

2

Ryuku Islands_

4

Sarawak

5

Singapore

561

436

South Africa

9

1

Spain

1

Sweden

85

121

Switzerland.

52

59

Taiwan

38

12

Thailand

3

9

Timor (Portuguese)

1

1

United Kingdom

6134

6650

U. S. A.

2078

1736

14613

13991

Total:

31

APPENDIX X

Comparative Table of Numbers of Manifests Received during April, 1951/March, 1952 and April, 1952/March, 1953

Month

Ocean

River

i

Junk

Total

1951

1952

1951

1952

1951

1952

1951

1952

April

504

443

312

345

2,715

1,497

3,531

2,285

May

523

508

396

230

3,263

1,673

4,182

2,411

June...

454

489

405

317

2,759

1,409

3,618

2,215

July.

468

456

423

380

3,366

1,786

4,257

2,622

{

August....

4.54

487

484

303

3,529

2,009

4,467

2,799

September

464

530

389

294

3,485

2,191

4,338

3,015

October

468

497

343

410

3,156

2,077

3,967

2,984

November

434

499

289

239

2,748

2,217

3,471

2,955

December

469

585

301

322

2,329

2,430

3,099

3,337

1952

1953

1952

1953

1952

1953

1952

1953

January

453

551

313

211

2,037

2,455

2,803

3,217

February

390

519

308

167

1,841

2,028

2,539

2,714

March

457

587

322

231

1,603

1,997

2,382

2,815

Total

5,538

6,151

4,285

3,449

32,831

23,769

42,654

33,369

Average per Month

462

513

357

287

2,736

1,981

3,555

2,781

32

APPENDIX XI

Comparative Table of Numbers of Declarations Received in April, 1951/March, 1952 and April, 1952/March, 1953.

April, 1951-March, 1952

April, 1952-March, 1953

April

1951

31,946

April

1952

42,512

May

33,048 May

47,372

June

35,110 June

41,175

>>

July

34,902

July

50,485

August

33,422

August

**

46,423

September

34,439

>>

September

53,395

>>

October

>

37,895

October

51,026

November

35,731 November

52,556

December

**

39,401 December

58,602

January

1952

43,017

January

1953

56,954

February

44,598 February

43,832

March

45,149

March

56,194

"

Total

448,658

Total

600,526

Average per month

37,388

Average per month

50,044

33

APPENDIX XII

Statistics of locally manufactured, processed or produced products exported under Imperial Preference Certificates, Certificates of Origin, and Comprehensive Certificates of

Origin for the period from 1st April, 1952, to 31st March, 1953

Artware

Aluminiumware

Animal fats

Beverages

Batteries, torch

Bean products

Bulbs, torch

Buttons

Commodity

Bambooware

Bricks & tiles.....

Books & printed matter

Cotton waste

Camphorwood chests & furniture

Camphor tablets & powder..

Canned foodstuffs

Candles and joss sticks

Chinaware

Quantity

Various

**

Value in H.K.$

11,479

68,471

180,034

..

29,353

*

377,130 doz. 399,690 lbs. Various

1,112,768

865,103

888,055

991,982

**

*g

335,029

146,523

"

"

ララ

136,662

406,958

1,934,270

327,117 lbs.

1,060,765

Various

6,643,880

249,493

77

436,977

**

Cotton yarn

Cotton piece goods

Cosmetics & perfumery Confectionery

Cutlery

23,394,551

17,896,349

847,447

"

Canvas ware

23,133 lbs, 21,188 pcs.

Various

74,090

69,397

62,456

Enamelware

10,985,174

Electrical appliances..

78,105

Embroidery

4,996,308

**

Eggs, salted & preserved

>>

353,369

Firecrackers

11,375 cases

863,822

Fans

Various

66,184

Fish & fish products..

1,532,430

""

Flashlights

15,662,470

ララ

Fibre suit cases......

449,780

Feathers

21,776

**

Ginger, preserved

622,381

Glassware

701,510

Ink

Groundnut oil...

Handkerchiefs

Hardware

Hats & Caps

Ivoryware

Jewellery..

Knitwear.

Lamps, kerosene...

Leather shoes..

Leatherware

Lanterns, pressure..

2,464 lbs.

8,942

Various

1,414,888

1,302.110

**

1,515,717

60

サラ

"

**

**

**

**

801,132 735,925 24,398,533

270,313 2,832,869 402,071 686,812

34

APPENDIX XII — Continued

Commodity

Quantity

Value in H.K.$

Lanterns, hurricane

Matches

Mosquito nets.....

Musical instruments

Machinery & equipment

Motion pictures

Meat, preserved. Medicine, raw.....

Medicine, proprietary

Monosodium glutamate.

Various

220,336

62,559,488 boxes

979,316

Various

9,042

1,154

17

317,060

**

95 copies

858,504

Various

137,419

60,898

ララ

1,564,759

6,621 doz.

268,911

Needles

Various

283,721

Neckties & scarves

1,065,196

ララ

Nuts & seeds....

10,783 lbs.

16,137

Paints, varnish & laquer..

Various

603,350

Paperware

381,836

77

Pencils.....

5,390 gross

44,247

Plasticware

Various

585,749

Plums, preserved

220,518 lbs.

721,352

Printed piece goods

Various

106,931

Rattanware..................

12,127,961

**

Ropes & twine

Rubber shoes... Rubberware Seagrass ware... Shirts & garments.

Socks

++

#7

742,787 13,029,780

33,239

3.

1,267,435

"

**

20,693,498

**

3,127,637

Soy & soy sauce

53

878,646

Sprays, insecticide...

264,600 boxes

126,128

Sugar, refined...

Various

113,800

Silk piece goods..

586,036

Soap

25,126

Tea, processed

Toys

Towels

"7

**

**

**

Toothbrushes

1,364,758

382,338 1,964,789 798,141 275

Threads

Tobacco & cigarettes

Umbrellas

Vacuum flasks

Vegetables & fruit, fresh.

Vegetables & fruit, preserved..

Watchbands

Waterchestnuts, fresh & canned.

Wolfram

Woodware

Miscellaneous

17

**

**

337,988

60,396 doz.

1,938,231

Various

338,101

134,823

**

1,370,320

ララ

3,760,253

939,350 lbs.

1,858,869

Various

525,156

315,963

..

**

1,765,317

206,379,086

Total number of Imperial Preference Certificates:-- Total number of Certificates of Origin:

Total number of Comprehensive Certificates of Origin:—

35

20,146

28,756

471

APPENDIX ́XIII

Revenue for the period from 1st April, 1952 to 31st March, 1953

Gross

Net

$

Duties:-

Liquor

18,880,575.66

18,715,593.49

Hydrocarbon oils

15,304,067.44

15,232,657.82

Proprietary medicines and toilet preparations.

3,208,280.50

3,202,023.06

Table water.......

1,853,246.80

1,853,230.17

Tobacco

38,889,799.56

35,206,290.90

Licences, fines and forfeitures:-

Liquor licences

797,916.12

797,881.72

Hydrocarbon oils licences

20,213.27

19,749.63

Proprietary medicines and toilet preparations

licences...

124,322.42

124,264.35

Miscellaneous (table water) licences..

6,054.95

6,054.06

Tobacco licences

406,798.07

406,738.07

Tally clerk licences.

6,335.00

6,335.00

Forfeitures

6,810,189.62

6,810,189.62

Fees of court or office:-

Denaturing fees

164,571.74

164,503.22

Official certificates

306,920.00

306,915.00

Anti-narcotic smuggling guards

16,200.00

16,200.00

Bonded warehouse supervision

52,730.00

52,730.00

Expenditure of Supplies division

754,962.33

754,962.33

Internal revenue:-

Business registration tax

Stamp duties

5,759,134.50

5,757,927.00

600,526.00

600,526.00

Miscellaneous receipts:-

Other miscellaneous receipts.

26,907.51

26,657.51

36

93,989,751.49 90,061,428.95

APPENDIX XIV

Details of duty from European-type liquor

Type of liquor

Gallons

Duty collected

$

Ale, beer, cider and stout (Non-empire origin)

897,271

1,708,581.17

(Empire origin)

279,672

448,007.13

Beer (Local origin).................

665,881

665,880.77

Brandy (Non-empire origin)

52,002

2,860,258.25

(Empire origin)..........

4,268

198,963.52

Whisky (Non-empire origin).

716

*

(Empire origin).............

63,727

37,654.99 2,804,230.50

Gin and cocktail (Non-empire origin)

714

**

(Empire origin)

24,128

37,358.54 1,100,879.40

Rum (Non-empire origin)

441

23,102.51

>>

(Empire origin).

1,514

66,626.28

**

(Local origin)

2,824

124,248.67

Liqueur (Non-empire origin)..

6,438

354,091.03

(Empire origin)

704

32,719.26

Champagne and sparkling wine (Non-empire origin)..

3,740

164,540.57

(Empire origin)..

28

1,020.02

Port (Non-empire origin)

8,512

212,792.34

**

(Empire origin)

8,242

165,113.94

Sherry, madeira and malaga (Non-empire origin)

6,162

154,056.55

(Empire origin)

209

4,184.60

Vermouth (Non-empire origin)

2,707

54,142.00

*

(Empire origin)................

Miscellaneous (Non-empire origin)

(Empire origin)

Spirit of wine (Non-empire origin)

2

32.00

13,598

271,955.46

1,944

63,110.74

3,300

75,303.69

(Empire origin)

77

(Local origin)

Spirituous liquors

14

228.59

3,361

40,717

61,842.40 284,671.90

Totals.

2,092,836

11,975,596.82

Note: Fractions of a gallon are not shown.

37

38

APPENDIX XV

Details of duty from Chinese-type liquor

Liquor

Totat amount

distilled

Amount of Imported

Amount of

locally

duty collected

liquor

duty collected

of duty

collected

gallons

gallons

$9

Native spirits not more than 25% of

alcohol by weight

1,142,468

5,712,340.00

25,895

155,852.75

5,868,192.75

Native spirits over 25% of alcohol by

weight.

79,396

609,492.00

962

6,513.63

616,005.63

05.63

Northern spirits over 25% of alcohol

by weight

26.752

298,665.30

298,665.30

Northern spirits not more than 25% of

alcohol by weight....

19,432

116,915.80

116,915,80

Note:

Fractions of a gallon are not shown

Total......... 6,899,779.48

APPENDIX XVI

Details of duties from liquor

Duty on European liquor

Duty on spirituous liquor Duty on Chinese liquor

Total:-

11,553,550.24 422,046.58

6,899,779.48

18,875,376.30

5,199.36

Add departmental transfer

Total:-

18,880,575.66

Subtract refund of liquor duties

153,989.69

18,726,585.97

Subtract transfers

Net total:-

APPENDIX XVII

10,992.48

18,715,593.49

Details of duty from tobacco

Duty from:

lbs

$

Cigars

21,380

149,481.13

Cigarettes

2,979,309

17,047,970.04

European smoking tobacco

87,885

351,995.94

Chinese prepared tobacco

16,055

48,165.00

Clean tobacco leaf

16,852

63,236.19

Raw tobacco leaf (Empire origin)

1,353,517

4,804,985.35

Raw tobacco leaf (Non-empire origin)

4,378,887

16,420,826.25

Snuff

226

1,083.36

Total

Add departmental transfer

38,887,743.26

Grand total

Subtract drawback

Net total

39

2,056.30

38,889,799.56

3,683,508.66

35,206,290.90

APPENDIX XVIII

Details of duty from hydrocarbon oils

Duty from:

Light oils

Heavy oils for Vehicles

Heavy oils

Admixtures

Total

Subtract drawback

Net total

Imperial Gallons

9,966,950

7,973,560.00

1,737,957

695,182.80

65,489,216

6,548,921.60

232,711

86,403.04

15,304,067.44

71,409.62

15,232,657.82

APPENDIX XIX

Details of duty from toilet preparations and proprietary medicines

Duty on toilet preparations and proprietary medicines Add departmental transfer

Total:-

Subtract refund

$

3,208,254.39

26.11

3,208,280.50 6,250.85

Subtract transfer

Net total:-

APPENDIX XX

Details of duty from table water

Duty on table water

Add departmental transfer

Total

Subtract refund

Net total

40

3,202,029.65

6.59

3,202,023.06

Gallons

3,838,083

1,842,208.00

22,847

10,966.80

3,860,930

1,853,246.80

16.63

1,853,230.17

APPENDIX XXI

Details of liquor licences issued for the period from 1st April, 1952 to 31st March, 1953

General bonded warehouse licences:-

$1.

Licensed warehouse licences:-

$600.

Distillery licences -

(a) Single still

(b) Two stills

Brewery licence :-

$600.

Canteen licences:- $1.

Importer's licences :-

$150.

Dealer's licences :-

(a) for European-type liquor:-

$1,500.

8.00

8

6

3,600.00

$ 25. $200.

10

250.00

6

1,200.00

1

600.00

5

5.00

705

105,750.00

202

303,000.00

(b) for Chinese-type liquor:-

(i) $650.

340

221,000.00

(ii) $550.

97

53,350.00

(iii) $400.

5

2,000.00

(iv) $ 50.

140

7,000.00

(c) for liquor other than intoxicating liquor:-

$30...

694

20,820.00

Retailer's licences:-

(a) for Chinese-type liquor :-

(i) $150.

44

6,600.00

(ii) $25.

18

450.00

(b) for liquor other than intoxicating liquor:-

$ 50.

807

40,350.00

) $ 30.

633

18,990.00

iii

$ 20.

239

4,780.00

Permit to use alcohol free of duty in an educational, scientific

or charitable institution:-

$1.

2

2.00

Harbour vessel licences:-

$1.

11

11.00

Ship licences:-

$10...

16

160.00

Miscellaneous

7,990.12

Total...

797,916.12

41

APPENDIX XXII

Details of tobacco licences issued for the period from 1st April, 1952 to 31st March, 1953

$

Licensed warehouse licences :-

(a) $600.

3

1,800.00

(b) $300.

1

300.00

Manufacturer's licences:-

(a) $300.

(b) $150.

NA

7

2,100.00

2

300.00

Travelling saleman's licences :-

$ 10.

214

2,140.00

Importer's licences:-

$150.

113

16,950.00

Dealer's licences :-

$300.

Retailer's licences:-

298

89,400.00

(a) $ 60.

(b) $ 40.

2,632

157,920.00

2,826

113,040.00

(c) $ 20.

Squatter's licences:-

$ 8. Miscellaneous

1,010

20,200.00

77

616.00

2,032.07

Total..

406,798.07

APPENDIX XXIII

Details of hydrocarbon oils licences issued for the period from 1st April, 1952 to 31st March, 1953

Licensed warehouse licences :-

$350.

Importer's licences:-

$150.

Dealer's licences:-

$ 10.

Retailer's licences:-

$ 10.

Miscellaneous

Total ......

42

9

3,150.00

83

12,450.00

91

910.00

75

750.00

2,953.27

20,213.27

APPENDIX XXIV

Details of toilet preparations and proprietary medicines licences issued for the period from 1st April, 1952 to 31st March, 1953

Manufacturer's licences:-

$150

Warehouse licences:-

$10

Importer's licences :-

(a) $150

(b) $20

266

39,900.00

269

2,690.00

89

13,350.00

555

11,100.00

Dealer's licences :-

$10..

795

7,950.00

Retailer's licenees :-

(a) $60

69

4,140.00

(b) $40

(c) $30.

9

360.00

807

24,210.00

(d) $20..

(e) $10..

Miscellaneous

636

12,720.00

239

2,390.00

5,512.42

Total.......

124,322.42

APPENDIX XXV

Details of table waters licences issued for the period from 1st April, 1952 to 31st March, 1953

Licensed warehouse licences :-

$10...

Manufacturer's licences :-

(a) $300

(b) $75

Importer's licences :-

$100

Miscellaneous

43

Total...

$

12

120.00

12

3,600.00

13

975.00

10

1,000.00

359.95

6,054.95

APPENDIX XXVI

Details of tallyclerk licences issued for the period from 1st April, 1952 to 31st March, 1953

Tallyclerk's licences :-

$5

Miscellaneous

DANGEROUS DRUGS

Total..

APPENDIX XXVII

Details of arrests and seizures

1,265

6,325.00

10.00

6,335.00

Estreat-

Arrests

Convic- tions

ments of

bail

Seizures without

arrest

opium (possession and/or importing) opium dross (possession).

LA

opium pipes (possession).

5

5

3

[

2

morphine

LO OVO N

5

2

6

2

1

TOBACCO

cigarettes (possession).......

172

365

4

1,017

tobacco (possession).

169

166

3

656

tobacco (importing).

5

5

tobacco (unlicensed selling)

11

10

1

2

LIQUOR

duty-paid labels (possession).

9

8.

European-type liquor (possession)

25

24

Chinese-type spirit (possession)

78

75

stills (unlicensed)...

9

8

147

609

1,402

distilling (unlicensed)

14

14

selling (unlicensed)

3

3

TABLE WATERS (possession)..

1

1

1

1

PROPRIETARY MEDICINES AND

TOILET PREPARATIONS

possession

28

28

unlicensed selling..

2

2

unlicensed manufacturing

3

3

211

21

importing

1

1

failure to keep books.

5

5

44

APPENDIX XXVII · Continued

Estreat-

Seizures

Convic-

Arrests

tions

ments of bail

without

arrest

UNMANIFESTED CARGO

importing

3

exporting

61

50

9583

2

5

8

51

PROHIBITED EXPORTS

(including specified articles)

importing

1

1

exporting

138

117

| 10

2

5

54

GOLD

importing

25

17

6

exporting

18

12

6

VO N

2

9

IMPORT CONTROL ..............

1

1

EXPORT CONTROL

6

6

3

Miscellaneous summary cases

184

180

APPENDIX XXVIII

Details of major seizures of opium

Place of seizures

Date

Type of opium

Taels

Destination indicated by circumstances

of seizure

8. s. "Tasman”

4. 7. $2

raw opium

121

Hong Kong

8. 8. "Eastern Queen".

16. 8.52

raw opium

3,364

Hong Kong

m. v. "Hermod”

12. 9. 52

raw opium

17

Hong Kong

m. v. "Moldova"

4. 10. 52

raw opium

534

Hong Kong

Air freight office of Northwest

Air Lines Inc.

17. 12. 52

raw opium

192

Taiwan

m. j. "Sun Hoi On"

17. 3. 53

raw opium

114

Hong Kong

45

APPENDIX XXIX

Details of main seizures of prohibited exports (specified articles).

Metal sheets

Sheet cuttings

Tinplate

Iron-plate cuttings

Iron scrap...

Iron plates

Copper plates

Copper tubings

Black sheets

Copper wire

Galvanized-iron sheets

Galvanized-iron pipes Steel bars

High-speed steel

94

bundles and 50 sheets

3

tons

279

skids, 330 boxes, 15 tons,

and 113 bundles

161⁄2 tons, 120,518 lbs, and

1 lot.

1,407

27

228

items

sheets, 1,200 lbs., and

62 bundles

64 coils

38,851

lbs., 23 tons, 60 crates

and 33 bundles

195 coils

113,140

61

400

lbs., 58 skids, 520 sheets, 9 tons, 474 bundles,

and 73 rolls

pipes and 90 tubes

367 items

36,969 lbs., and 482 sheets

2,534 lbs.

65 coils and 11,460 lbs.

Mild-steel plates.

Mild-steel cuttings

Hoop steel

Hacksaw blades

188

pcs., 2 cases, 3 spools

and 4 boxes

Steel saw blades.

57

packets

Brass sheets

54

sheets and 2,820 lbs.

Piercing saws

15

gross

High-speed drills

10

cases and 2 sacks

Twisted wire

70 coils and 800 lbs.

Levels

Tool kits

Stocks and dies

Two point plugs

Valve cores

Ignition coils

Ignition-coils brackets

Radio valves

10

10

sets

162

items, 65 sets and 5 cases

240

4,000

11

14

182

46

APPENDIX XXIX

Continued

Radio tubes

32

Recording wire

300

spools

Flexible cords

8 coils

Light sockets

Telephone receivers

Voltage regulators

Hand-turned generators

Meter parts

10

107

15

15

2

Aluminium ingots and slabs

238

Aluminium foil

ingots and 5,000 lbs.

8 packages

Carborundum stone

Grinding stone

189 items

146

items

5

5

Theodolite tools

Theodolite platforms

Microphones

Oscilloscope models

Graphite crucible

Twist drills

Carbon-steel tool bits

Old Steel-head files

4

2 sets

3

160 dozen and 690

King bolt sets

Empty drums

Knitting-machine cutters

Knitting-machine parts

Screw-cutting machines

Screw-cutting parts

Thread-cutting tools Assemblies Pulley blocks Ball bearings

Reflex driver units

Machine parts Engine parts

Motor spare parts Camelback

Motor generators Shock absorbers

Clutch pressures Carburetors

Universal joints

29

200

21

80

16

20

10

20

80

63

5

cases

234 items and 16 boxes

5

sets

100

15

bundles

220 items and 4 cases

42 bundles

4

31

5

96

14

47

Piston pins

Platinum plates

Auto valves

APPENDIX XXIX — Continued

180 boxes

700 packages

10 boxes

Spark plugs

1,410

plugs, 3 packets and

1 parcel

Hydraulic jacks

205

Jack handles

204

Hand jacks

8

cases

24

52

10

1,504

12

26

Auto coils

Oil rings

Motors

Auto lamps Cylinder heads King-pin bushes

Gaskets

Reamers

Horn units

Drill chucks

Rubber tyres

Heavy-duty tyres

Lorry inner tubes

Inner motor-tube valves

Bicycles

Lorries

Saloon cars

Smoked rubber

X ray film Film

Bromide printing paper

Photographic paper

500 packages

411

5

97

·

8 sets and 99 tyres

25

530

6,000

2

2

NNN LO

2

5 tons, 2 cwts., 144 bales and 54 bundles

9 boxes

20 tins, 6 boxes and 46 rolls 24 boxes and 32 rolls

6 packages and 8 rolls

drums

Diaphenylgnanedine

Sulphur

Acetic acid

Carbolic acid

Borax

Cresylic acid

Sodium nitrate

Crystal units

48

120

67

lbs.

139

carboys and 465 bottles

85 drums and ton

100

bags

1 parcel

67

lbs

40

APPENDIX XXX

Details of seizures of dutiable commodities

Chinese prepared tobacco

Cigarettes (various brands)

Cigars

Pipe tobacco

European-type liquor

Chinese-type liquors

Beer

Table waters

Hair pomade

Toilet soap

Tooth Paste

Tooth powder

Miscellaneous toilet preparations

Chinese medicines

Illicit stills

Fermenting materials

19,596§ lbs.

11,345,822

1,270, 7 boxes, and 9 packets

12 tins

1,1461 bottles and 12 demi-

johns

3,105 gallons

430 bottles

57 bottles and 2 jars

184 doz. and 11 jars

119 gross and 93 cases

424 tubes and 60 gross

19

gross

434 items and 6 boxes

1,097 boxes,

9,780 bottles,

5,968 packets, and

279 items

1,330

30,841 gallons

Petroleum jelly

Lubricating oil

Paraffin wax

Vaseline

APPENDIX XXXI

Details of seizures of petroleum products

49

744 gallons

16 gallons

4 tons and 20 lbs.

226 lbs. and 5 tins.

+

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APPENDIX XXXII

HONG KONG GOVERNMENT

DEPARTMENT OF COMMERCE AND INDUSTRY

(SUPPLIES DIVISION)

SUMMARIZED ACCOUNTS

for the year ended 31st March, 1953

and

Auditors' Report thereon

HONG KONG-SEPTEMBER, 1953

HONG KOC-ZELLAREI LEN,

mosrsd) Jaoqs♬I 'riotibu?.

Yuq

401. 1PG 269L Guq6q 2181 Help' 1322

ZOWWVLISED VGCONAL

(20ьbr]E? DIZIOA)

DELVRIWEAL OF COMMERCE VED INDIZIKA

HONG KEZG COŁEKUWIEWİ.

"KLEADIZThe Director,

Hong Kong, 13th October, 1953.

The Department of Commerce and Industry,

Hong Kong.

Sir,

DEPARTMENT OF COMMERCE AND 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, 1953, 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 AND LOSS ACCOUNTS

General

The Accounts of the Division for the year under review are presented in summarized form on a basis consistent with that of the previous year.

The following points should be borne in mind when considering the results of the year's operations as reflected in the Accounts now presented:

1. The Supplies Division is bearing the cost of main- taining Government's reserve stocks of certain essential food- stuffs and fuel. Certain recurrent items of expenditure shown

53

in the Accounts are, therefore, greatly in excess of the amounts justified by the normal turnover of the Division. While it is not practicable to show this excess as a separate item, the charges affected are:

Storage Charges and Fire Insurance on reserve stocks in

excess of normal requirements.

Storage Losses by loss in weight and deterioration arising

from the increased period of turnover of stocks.

Interest Charged by Treasury on funds utilized to purchase

reserve stocks.

The Division is required to pay its annual profits into the Development Fund and cannot, therefore, retain these profits in order to reduce its liability on Treasury Suspense Accounts. The result is that, so long as stocks remain unsold, the relative Suspense Accounts will remain in overdraft bearing interest at 31% per annum.

Losses occasioned by revaluation of Stocks

2.

Stocks as at 31st March, 1953, have been valued at the lower of Landed Cost or the net proceeds to Govern- ment prevailing as at 1st April, 1953. It will be appre- ciated that losses arising from the valuation of certain stocks at the latter value are in proportion to the magnitude of reserve stocks carried at 31st March, 1953.

The Accounts as presented make no provision for:

(a) Anticipated Storage Losses on closing stocks of all commodities, with the exception of Firewood, as at 31st March, 1953. Our further comments in this respect are included under "Stocks on Hand" later in this report.

(b) Non-recovery of a claim made by the Division, through Crown Agents, in respect of the poor quality of a rice shipment in December, 1952, in the amount HK$44,708.07.

54

(c) Claims made by the Division in respect of loss or damage in 23 rice shipments received prior to 31st March, 1953. Recovery of 13 of these claims, in the amount HK$88,477.35 had been notified by Crown Agents prior to completion of our examination.

Food Section—Rice

Included in the item "Purchases HK$146,142,286.53" is an amount of HK$506,907.40, being loss in exchange incurred by the Division in, we are informed, the following circumstances:

At a time when the supply position was very difficult, a contract was entered into with a local company to buy rice from America for sterling. As Government undertook to obtain the export licence in America, the Division was obliged to hold the company covered against any loss due to delay in granting the licence. This involved accepting for the Division's account any exchange loss incurred by the company, as an allocation of U.S. dollars, which the company required to finance the transac- tion, could not be granted at official rates. The contract was subsequently frustrated by the refusal of the U.S. Government to permit the export of rice to Hong Kong, with the result that the company was left to dispose of the U.S. dollars at lower free market rates, and therefore at a substantial loss which had to be borne by the Division. Profit received from the resale in the United States of rice already delivered for shipment reduced the overall loss to the figure HK$506,907.40.

JAPAN TRADE SECTION-OPERATING ACCOUNT

With the exception of minor transactions which re- mained outstanding from the previous year, Commission and Exchange Profit in respect of which are reflected in this Account, no business was done during the year under review.

Settlement of "Hong Kong-Japan Open Account" with the Bank of Japan was effected during the year under review at a rate favourable to the Division, with the result that the pro-

55

vision, made in the previous year, for exchange loss on settlement was found to be excessive, as shown in the Accounts now presented.

SURPLUS ACCOUNT

The balance at credit of this Account as at 31st March, 1952, HK$15,420,881.47, was extinguished during the year under review by payment of this sum to Treasury, for credit of Development Fund, in accordance with Legislative Council Resolution of 19th September, 1951.

BALANCE SHEET

LIABILITIES

Treasury Suspense Accounts—HK$106,953,091.32.

The Accountant General has confirmed these balances

as at 31st March, 1953.

Sundry Creditors and Deposits Received—HK$2,132,531.84.

So far as we have been able to ascertain from our examination and from information supplied to us, we are of the opinion that provision has been made for all known liabilities as at 31st March, 1953.

Included under this heading is the accrued amount (HK$346,495.50) of a levy raised upon approved importers of flour who were allowed to take up Government's allocation of flour under terms of the International Wheat Agreement.

Share of Votehead Expenditure-HK$626,669.40.

This is calculated, as in past years, on the basis of direct salaries and high cost of living allowances of the Food and Fuel Sections Staff to which has been added an oncost to cover the cost of Divisional Directorate and other overhead expenses. The rate of oncost is the same as that of the previous year. We are of the opinion that this oncost covers certain departmental activities not wholly connected with the normal operations of the Division.

56

14

Reserve for Depreciation of Godowns—HK$560,716.96.

As in the previous year, the profit from the operation of the Division's godowns at Chatham Road has been transferred to this Account. This profit, which arises from the charge to Rice Trading Account of storage charges, at commercial rates, on cargo stored in these godowns, is paid to Treasury to reduce the Division's liability on Rice Storage Suspense Account, originally raised to finance the construction of the godowns.

ASSETS

Hongkong and Shanghai Banking Corporation

Japan Trade Accounts-HK$90,036.62.

We have seen certificates from the Hongkong and Shanghai Banking Corporation, Hong Kong, confirming these balances, which represent the surplus on Japan Trade Operating Account as at 31st March, 1953.

Sundry Debtors and Debit Balances—HK$6,201,627.63.

This item may be summarized as follows:

Payments for Goods in transit, since

arrived

HK$4,448,609.82

Funds with Agents abroad, confirmed

90,755.33

Sundry Debtors since received

1,268,491.41

Claims agreed, since received

278,665.68

Claims agreed, to be received in kind

106,516.27

Claims not yet agreed

7,295.00

Claim repudiated, since written off

1,294.12

HK$6,201,627.63

Stocks on Hand-HK$106,636,580.99.

General

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, 1953, with Stock Lists supported by certificates from Public Godown Com-

57

panies and from commercial firms operating godowns and fuel yards on behalf of the Division. We have also perused reports submitted to the Division by Messrs. Carmichael and Clarke, Surveyors, on the results of physical tests, as at 31st March, 1953, made upon independently selected storage lots in public and Government godowns and in fuel yards operated on behalf of Government.

Food Section,

Rice

Stocks have been valued at the lower of Landed Cost or Net Proceeds to the Division, based on Selling Prices in force as at 1st April, 1953.

Storage Losses have been brought to account only when determined by clearance of individual storage lots during the year and these amount to 0.508% of the total quantity sold. No provision has been made for anticipated storage losses which may be expected to occur, or have since occurred, in stocks held as at 31st March, 1953.

Whilst we are informed that a substantial quantity of the rice stocks held as at 31st March, 1953, consists of varieties which are not in popular demand in Hong Kong they have, in the main, been written down for Balance Sheet purposes to net proceeds, based on selling prices as at 1st April, 1953. We would, however, point out that such selling prices are those set by the Division which prices are not necessarily realistic in view of the small demand for these varieties and the fact that, in certain cases, the Division has further reduced its selling prices since 1st April, 1953.

Sugar

Stocks have been valued as follows:

Refined Sugar stored in the Division's Godowns at the World Price prevailing for the quarter ended 31st March, 1953, adjusted in terms of Freight, Insurance and loss in weight in transit.

58

Refined Sugar stored in Taikoo Sugar Refinery Godown as above, plus an allowance for landing and weighing charges and storage losses.

Raw Sugar at C.I.F. cost.

The Division's purchases of Refined Sugar during the quarter ended 31st March, 1953, fell short of its allocation by 872.6 tons. The Division was therefore required, subsequent to that date, to take up this quantity at the price prevailing at 31st March, 1953, which was above that of the succeeding quarter.

Frozen Meat

Stocks have been valued at C.I.F. cost to the Division.

Stocks found to be unfit for human consumption during the year, as revealed upon issue, have been written off in the amount HK$8,207.71, after deduction of claims made on sup- pliers. No further provision has been made in these Accounts for any loss by deterioration which may have occurred in stocks which had been long in storage at 31st March, 1953.

Other Foodstuffs

These consist of stocks of four different items of food held as reserve stocks. Stock movements during the year under review represent the building up of certain stocks, or the replace- ment of old stocks by new stocks and the resultant losses cannot, in our opinion, be considered as pertaining to the normal trading activities of the Division.

Stocks have been valued at cost, in the case of three commodities, and at the estimated proceeds to the Division as at 31st March, 1953, in the case of the fourth commodity which represented approximately 68% by value of stocks under this heading as at that date. No provision has been made in these Accounts for the loss (HK$790,000.00 approximately) resulting from disposal, subsequent to 31st March, 1953, of the entire stock of this fourth commodity.

59

Fuel Section

Coal and Coke

Stocks have been valued at landed cost to the Division.

Firewood

Stocks have been valued at landed cost, less an allow- ance of 10% to cover loss of weight in storage.

In view of all the circumstances surrounding the storage of these stocks, in the open, in various storage yards in Hong Kong, we can express no opinion as to the adequacy, or otherwise, of the allowance of 10% for loss in weight in storage.

GENERAL COMMENTS

Subject to the foregoing observations, in our opinion, the attached Balance Sheet properly exhibits the state of the affairs of the Supplies Division as at 31st March, 1953, 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 pleasure in recording that the records of the Supplies Division for the year under review have been main- tained in a satisfactory manner by the Staff of the Division and also in expressing our appreciation of the courtesies and facilities extended to our staff during the course of our examination.

We have the honour to be, Sir,

Your obedient servants

LOWE, BINGHAM & MATTHEWS.

60

61

SURPLUS

for the year ended 31st

March, 1953

HONG KONG GOVERNMENT

Department of Commerce and Industry (Supplies Division) Surplus Account as at 31st March, 1953

HK$

3,523,253.03

SCHEDULE I

NET PROFIT,

transferred from Food

Section General Profit and Loss Account

NET PROFIT,

transferred from Fuel

Section General Profit and Loss Account

SURPLUS,

transferred from Japan

Trade Section Operating Account

HK$

2,495,090.86

938,125.55

90,036.62

HK$ 3,523,253,03

Consolidated Balance Sheet as at 31st March, 1953

LIABILITIES & SURPLUS

TREASURY SUSPENSE

ACCOUNTS

Overdrawn Balances :-

Food

$

98,660,471.04 7,998,878.25

Fuel

Rice Storage

SUNDRY CREDITORS AND

DEPOSITS RECEIVED

SHARE OF VOTEHEAD

EXPENDITURE 1952/53

Amount to be refunded to

General Revenue during 1953/54

RESERVE FOR DEPRECIA-

TION OF GODOWNS

SURPLUS, per statement

293,742.03 106,953,091.32

2,132,531.84

HK$ 3,523,253.03

ASSETS

HONG KONG & SHANGHAI

BANKING CORPORATION Japan Trade

Commission Account

$

60.361.00

Exchange Differrence

Account

SUNDRY DEBTORS AND

DEBIT BALANCES

As certified by Departmental

29,675.62

90,036.62

6,201,627.63

STOCKS ON HAND-

Officials

Food section

$

97,843,016.54

Fuel section

8,793,564.45

106,636,580.99

626,669.40

EQUIPMENT - At Cost

Food section

$

1,939.63

Fuel Section

1,200,00

3,139.63

560,716.96

3,523,253.03

GODOWNS, CHATHAM ROAD-

At Cost...

HK$113,796,262.55

864,877.68

HK$113,796,262.55

62

SCHEDULE II

Department of Commerce and Industry (Supplies Division) - Hong Kong

Food Section

Rice

Trading and Profit and Loss Accounts for the Year ended 31st March, 1953

HK$

HK$

Balance, being Gross Profit

Stocks at 1st April,

1952

Purchases

Less: Recoveries and Claims

Direct Expenses

Freight

Marine Insurance

Landing and weighing

Agency Commission

carried down

Incidental Expenses

Storage

Sales

32,944,169,57

$ 146,142,286.53

1,926,882.67

144,215,403.86

Ration ...... $118,635,908.33 Direct supply 6,593,664.57

Less:

125,229,572.90

8,350,178.60

695,335.30

1,449,099.14

Commission $ 4,601,708.92 Transporta-

tion

871,965.16

675,718.47

5,473,674.08 119,755,898.82

11,170,331.51

Proceeds of Sales of Gunnies

0

7,912,252,69 HK$196,242,157.63

Stocks at 31st March, 1953......

1,265,061,93

Balance, Gross Profit brought

down

1,002,685.01

75,483,573.80

HK$196,242,157.63

$ 7,912,252.69

Weighing Out and Handling

Charges

Fire Insurance

Rented Godown Expenses Balance, transferred to Food

Section General Profit and Loss Account

604,806.76 200,800.56

2,070,669.25 106,909.33

5,734,674.11

HK$ 7,912,252,69

Food Section

General Profit and Loss Account for

Share of Votehead Expen-

diture.....

Interest at 31% p.a. on Treasury

Advances

Balance, being NET PROFIT

for the year

$ 473,449.86

the Year ended 31st March, 1953

Balance, transferred from Trading and Profit and Loss Accounts:-

Profit on RICE

HK$ 7,912,252.63

$

5,734,674.11

SUGAR

1,809,157.33

2,502,612.95

FROZEN MEAT.

??

27

228,172.48

$

7,772,003.92

2,495,090.86

Loss on OTHER FOODSTUFFS

2,300.850.25

5,471,153.67

HK$ 5,471,153.67

HK$ 5,471,153,67

63

SCHEDULE IIA

Department of Commerce and Industry (Supplies Division) - Hong Kong

Food Section - Sugar

Trading and Profit and Loss Accounts for the Year ended 31st March, 1953

Stocks at 1st April,

1952

Purchases

Less: Claims

Direct Expenses

HK$

10,548,595.65

HK$

Sales

Ration

$ 492,483.35

$ 12,227,957.15

8,069.36

Direct Supply 21,299,374.63

21,791,857.98

12,219,887.79

Less: Commission... $35,735.76

Transportation 3,657.36

39,393.12

21,752,464.86

Freight

$

Marine Insurance

Landing and weighing...

342,276.19 41,793.33 148,193.40

532,262.92

Balance, being Gross Profit

carried down.......

2,167,678.34

Proceeds of Sales of Gunnies

Stocks at 31st March, 1953.........

A

HK$ 25,468,424.70

Incidental Expenses

Storage

247,667.40

----

Weighing Out and Handling

Charges

101,942.28

Fire Insurance

8,911.33

358,521.01

Balance, transferred to Food Section General Profit and Loss Account

1,809,157.33

HK$ 2,167,678.34

2,040.57

3,713,919.27

HK$ 25,468,424.70

Balance, Gross Profit brought

down

$ 2,167,678.34

HK$ 2,167,678.34

64

SCHEDULE IIB

Department of Commerce and Industry (Supplies Division) - Hong Kong

Food Section - Frozen Meat

Trading and Profit and Loss Accounts for the Year ended 31st March, 1953

Stocks at 1st April

1952

Purchases

Less: Claims

Direct Expenses

Freight

Marine Insurance

Balance, being Gross Profit

carried down....

HK$

HK$

Sales

5,340,592,82

$ 10,352,263.01

Local Consumption...... $

Navy

7,267,073.27

1,207,137.79

16,449.42

10,335,813.59

Ship's Stores.........

942,218.52

9,416,429.58

$

1,887,221.01 49,392.30

Stocks at 31st March, 1953

9,248,515.70

1,936,613.31

Incidental Expenses

Storage

Local Insurance

Condemned Stock written

off

Balance, transferred to Food

Section General Profit and Loss Account

1,051,925.56

HK$ 18,664,945.28

805,655.18

9.890.19

8,207.71

823,753.08

228.172,48

HK$ 1,051,925.56

HK$ 18,664,945.28

Balance, being Gross Profit

brought down

$ 1,051,925.56

HK$ 1,051,925.56

65

SCHEDULE IIC

Department of Commerce and Industry (Supplies Division) - Hong Kong

Food Section - Other Foodstuffs

Trading and Profit and Loss Accounts for the Year ended 31st March, 1953

HK$

Stocks, at 1st April,

1952

Purchases

8,236,411.71

Sales

6.603,037.89

Stocks at 31st March, 1953

Less: Claims

221.03

6,602,816.86

Direct Expenses

Balance, being Gross Loss

carried down.

Marine Insurance...

$

Landing and weighing

3,342.97 41,589.43

44,932.40

HK$ 14,884,160.97

Balance, Gross Loss brought

down

$ 1,927,397.53

Balance, transferred to Food Section General Profit and Loss Account

Incidental Expenses

Storage

$

332,039.35

Charges

Weighing Out and Handling

Fire Insurance

20,500.37

20,913.00

373,452.72

HK$ 2,300,850.25

Food Section

HK$

3,559,755.67

9,397,007.77

1,927,397.53

HK$ 14,884,160.97

$ 2,300,850.25

HK$ 2,300,850.25

$

399,683.92

Chatham Road Godowns Operating Account for the Year ended 31st March, 1953

Management, Operation and

Maintenance Expenses

Balance, being Operating Profit carried to Reserve for Depre- ciation of Godowns

$ 130,086.58

269,597.34

HK$

399,683.92

Storage Charges

HK$

399,683.92

66

SCHEDULE III

Department of Commerce and Industry (Supplies Division) - Hong Kong

Fuel Section

Coal Trading Account for the Year ended 31st March, 1953

Stocks at 1st April,

1952

Purchases

Stevedorage and Delivery

Charges

Brokerage and Commission Balance, being Gross Profit

carried down...

HK$

HK$

Sales

$

843,710.33 21,971,777.83

Less: Commission on Coal Sales

21,752,719.61

2,198.00

21,750,521.61

1,462,485.48

199,457.76

Stocks at 31st March, 1953

5,192,445.71

2,465,535.92

HK$ 26,942,967.32

Firewood Trading Account for the Year ended 31st March, 1953

Stocks at Ist April. 1952............

Purchases

Stevedorage and Delivery

Charges

Storage and Incidental Expenses:

Rents and Storage Electricity and Water

Charges ...

Rates and Property Tax Repairs and Maintenance Wharfage Fees and Dues Fire Insurance Survey Fees

Interest on Suspense Account

Paid to Treasury

$

$ 1,142,142.96

3,097,015.79

Sales

HK$ 26,942,967.32

$

Stocks at 31st March, 1953

$

Less: Estimated Storage Loss. Balance, being Gross Loss

4,001,243.04 400.124.30

462,570.20

3,601,118.74

190,483.93

carried down...

365,953.74

HK$ 4,429,642.68

HK$ 4,429,642.68

Gross Profit on Coal

524,953.37

brought down

12,715.42

$

2,465,535.92

365,953.74

2,099,582.18

120,278.02

....

20,219.27

....

22,302.50 64,144.48

17,082.78

781,695.84

226,541.25

153,219.54

938,125.55

Share of Votehead Expenditure. Balance, being Net Profit for

the year

Less: Gross Loss on Firewood

brought down......

HK$ 2,099,582.18

HK$ 2,099,582.18

67

SCHEDULE IV

Department of Commerce and Industry (Supplies Division)

Japan Trade Section

1

Hong Kong

Operating Account for the Year ended 31st March, 1953

Balance, being Surplus for

the year.

HK$

HK$

Commission received from

$

90,036.62

Hongkong & Shanghai Banking Corporation...

$

513.00

Exchange Profit from Counter-

part Account

807.05

Interest at % p.a. on Bank

Accounts

59,848.00

Provision for Exchange Loss

on Settlement of Hong

Kong/Japan Open Account with the Bank of Japan

$3

64,998.42

Less: Exchange Loss accepted.

36,129.85

23,868.57

HK$

90,036.62

HK$

90,036.62

OVT.

RESS

HONG KONG


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