工商業管理處年報 Commerce and Industry Department Annaul Report 1953-1954

HONG KONG

PRICE: $ 6

Library Copy No. DR 24

Date 20 MAY 1955

Library Book No.351-01

ANNUAL

1107

DEPARTMENTAL

REPORTS

1953-54

DIRECTOR OF

COMMERCE AND INDUSTRY

off

Library Book No.351.06

HONG KONG

ANNUAL DEPARTMENTAL REPORT

BY THE

DIRECTOR OF

COMMERCE AND INDUSTRY

FOR THE

FINANCIAL YEAR 1953-54

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER.

HONG KONG.

1107

HK 574

сом 54

1107

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MARINE DEPARTMENT LIBRARY |

I. GENERAL REVIEW

CONTENTS

Paragraphs

1- 11

II. THE COLONY'S TRADE

General

China Mainland

United Kingdom

Japan

Indonesia

United States of America

III. HONG KONG'S PRODUCTS

Exports

Raw Materials

Industrial Development Industrial Sites

IV. TRADE PROMOTION

•

26 28

30 32

General

Trade Promotion

35 - 41

Comprehensive and Tourist Certificates

of Origin

Imperial Preference

Certificates and

Ordinary Certificates of Origin

Trade Advisory Committee

Trade and Industry Advisory Committee.

V. TRADE CONTROLS

51 54

Import Licensing

Export Licensing

Essential Supplies Certificates

Price Control

Relaxations

61 - 63

CONTENTS-Contd.

VI. STATISTICS

VII. PREVENTIVE SERVICE

General

Paragraphs

64 - 68

Seizures

Transport

VIII.

DUTIABLE COMMODITIES

IX. BUSINESS REGISTRATION

DEPARTMENTAL TRADING ACTIVITIES

Rice

69 - 72

73 76

77 78

79 - 80

Sugar

Frozen meat

Other foodstuffs

Coal and coke

Firewood

Accounts

83 - 90

97 - 101

102

103 - 106

107

XI.

LEGISLATION

XII.

STAFF

XIII. REPORT OF THE DIRECTOR OF THE HONG KONG

GOVERNMENT OFFICE IN LONDON

General

Trade Promotion

108 - 123

124 - 128

129 136

Commercial Relations

Public Relations

137 - 145

146 - 149

Office Accommodation and Staff

150 - 151

LIST OF APPENDICES

Appendix No.

Page

II.

III.

Comparative Table of Total Values of Imports for the Years 1952 and 1953.

Comparative Table of Total Values of Exports for the Years 1952 and 1953.

Comparison of Volume of Trade, Hong Kong, 1953 with 1952 and 1951 (Moving Average 3 months)

IV.

Values of Imports and Exports 1953 (in

million H.K.$)

VI.

Volume of Hong Kong's Imports and Exports, 1953 (in thousand long tons).

Table Showing Total Values of Exports of Hong Kong Products (as in Trade Returns) for the Year 1953

VII.

Import Licences Issued for the year ending

31st December, 1953

VIII.

Export Licences Issued for the year ending

31st December, 1953

IX.

Comparative table showing the number of Essential Supplies Certificates issued during the years 1951 to 1953

Comparative Table of Numbers of Mani- fests Received during the Years 1952 and 1953

iii

Appendix No.

LIST OF APPENDICES-Contd.

XI.

XII.

Comparative Table of Numbers of Declara- tions Received during the Years 1952 and 1953

Locally manufactured, processed or pro- duced commodities exported under Imperial Preference Certificates, Certi- ficates of Origin, and Comprehensive Certificates of Origin from 1st April, 1953, to 31st March, 1954

Page

XIII.

Revenue for the period from 1st April,

1953 to 31st March, 1954

XIV.

Details of duties 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, 1953 to 31st March, 1954

XXII.

Details of tobacco licences issued for the period from 1st April, 1953 to 31st March, 1954

Appendix No.

XXIII.

XXIV.

LIST OF APPENDICES-Contd.

Details of hydrocarbon oils licences issued for the period from 1st April, 1953 to 31st March, 1954

Details of toilet preparations and pro- prietary medicines licences issued for the period from 1st April, 1953 to 31st March, 1954

Page

XXV.

Details of table waters licences issued for the period from 1st April, 1953 to 31st March, 1954

XXVI.

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

XXVII.

Details of arrests and seizures

XXVIII.

Details of major seizures of dangerous

drugs

XXIX.

Details of main seizures of specified

articles

XXX.

XXXI.

XXXII.

XXXIII.

Details of seizures of dutiable commodities.

Details of seizures of petroleum products...

Summarized Accounts, Supplies Division...

Imperial Preference. Importation of Hong Kong Products into the United King- dom

XXXIV. London Office Statistics

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I- GENERAL REVIEW

1. In terms of value the Colony's trade in 1953 was slightly worse than that for 1952 and again, the year was a difficult one for local merchants. There was some indication in the early part of the year that trade was improving but, during the summer months, it slumped to such an extent that, in the second half of the year, it was 20% below that of the first half. This recession was due mainly to the more selective buying interest on the part of mainland China, the shortage of foreign exchange in Indonesia and Thailand, and to Italian restrictions on imports of China produce through Hong Kong. Trade in terms of tonnage for the second half of the year declined by only 6.8% and indicated a general fall in commodity prices.

2. One of the few bright spots of the year was the notable increase in the export of Hong Kong manufactured goods which, despite trade restrictions in other Far Eastern countries, improved from $486.2 million in 1952 to $635.3 million in 1953. This figure represented 23.2% of the Colony's total exports. Indonesia was the best customer for Hong Kong's products and imported over $217 million worth of goods mainly in the form of cotton piecegoods and yarn, singlets, enamelware, torch batteries, aluminiumware, and plastics.

3. To promote the sale of Hong Kong products overseas it was decided in August 1953 to established a separate Trade Development Division under the control of an Assistant Director. Activities were first directed towards speeding-up the clearance of goods for export to the United States. Twenty-eight items had already been cleared and, with the ready cooperation of officials of the United States Government in Hong Kong, the list was extended to about fifty categories by the 31st March, 1954.

4. The first printed copy of the official "Trade Bulletin" was issued in December, 1953. It was a considerable improve- ment on the previous trade inquiries sheet which had a circula-

tion of only 1,400 in August. By the end of March, 1954 over six thousand copies of the Bulletin were being distributed each month.

5. The eleventh annual exhibition of local products, origanized by the Chinese Manufacturers' Union, was opened by His Excellency the Governor on 14th December, 1953.

This was the largest and most successful of all the exhibitions held in the Colony. Three notable innovations were the general display stall, the reception bureau for overseas visitors, and the competi- tion for the best-stall display.

6. The Colony was once again represented in the Common- wealth Section of the British Industries Fair held at Earls Court, London, between 27th April and 8th May, 1953. Another edition of the B.I.F. Directory was published in time for despatch to London for the 1954 Fair and for distribution at the Washington State Third International Trade Fair which was held at Seattle between 11th and 24th February, 1954.

Several measures were taken during the year to improve the internal organization and efficiency of the Preventive Service. Most of this work would not have been possible without the co- operation of the Commissioner of Police who seconded a senior police officer to the department for a period of six months.

8. Revenue collected during the financial year was slightly lower than the record total for the previous year but was higher than the figures for 1951/52.

9. The Supplies Division, as with other trading concerns, was faced by a change from scarcity of essential commodities stocked to comparative abundance and from a sellers' to a buyers' market. Rice in particular became plentiful for the first time since the war. A large trading loss was taken by the department because it was not in a position to adjust its stocks except to a minor degree. The activities of the Division are covered in some detail in paragraphs 83 to 106 of this report.

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10. The department continued to maintain close liaison with the Director of the Hong Kong Government Office in London, with the Hong Kong Government Representative in Tokyo, and with trade commissioners and foreign consular officials in Hong Kong.

11. The Director is grateful to those members of the former Trade Advisory Committee who gave up so much time and energy to advising departmental officers on many complex problems, to the present members of the newly- constituted Trade and Industry Advisory Committee, and to officials and members of Chambers of Commerce and the Chinese Manufacturers' Union for assisting departmental officers and providing representatives for various committees.

II THE COLONY'S TRADE

General

12. In 1953 trade was valued at $6,606.4 million, a decrease of $72.1 million (1.1%) compared with the figure of $6,678.5 million for 1952. Tonnage figures fell slightly from 5,074,674 tons in 1952 to 5,021,866 tons in 1953, a drop of 52,808 tons or 1%.

13. The total value of imports amounted to $3,872.7 million, an increase of $93.2 million (2.5%) over the 1952 total. The value of exports declined by $165.3 million (5.7%) from $2,899.0 million in 1952 to $2,733.7 million in 1953. Comparative figures of monthly imports and exports for 1953 are shown in Appendices I and II. The remarks in this chapter relate to trade in the calendar year.

14. Principal sources of the Colony's imports in 1953 in order of importance were China, the United Kingdom, Japan, Thailand, the United States, Western Germany, and Malaya. The chief markets for exports were China, Indonesia, Malaya, Japan, Thailand, the United Kingdom, and Formosa.

15. The chief commodities imported were, in millions of dollars, textile yarns and fabrics, $454.3, cereals and cereal pre- parations, $371.7, fruits and vegetables, $245.7, textile fibres, $232.5, medicinal and pharmaceutical products, $223.0, animai and vegetable crude materials, $168.7, watches, clocks and optical goods, $159.4, and animal and vegetable oils, $133.3. The principal exports consisted of textile yarns and fabrics, $462.0, medicinal and pharmaceutical products, $245.0, clothing, $223.3, fruits and vegetables, $175.8, animal and vegetable crude materials, $134.5, and dyeing and tanning materials, $121.2.

16. Graphs illustrating the Colony's trade are Appendices III, IV and V. The first shows the value of trade on a three-months moving average for the years 1951, 1952, and 1953 and the others show the value and volume of trade for each month of 1953.

China Mainland

17. There was no substantial change over the previous year. In the second half of the year a decline in demand due to a shift to more direct sources of supply became apparent.

18. Imports from China increased in value by $27 million to $857.1 million, or 3%, and the value of exports increased by 4%, from $520.0 million to $540.3 million.

United Kingdom

19. A slight increase was recorded in the value of imports from the United Kingdom from $470.3 million to $474.3 million. Exports showed a big increase in value of 43%, from $83.3 million to $119.2 million largely because of increased shipments of locally-manufactured clothing and footwear.

Japan

20. In the second half of the year, restrictions on imports, imposed in 1952 for exchange reasons, were removed. Re-export of Japanese goods to Singapore was permitted in September, 1953 and to other scheduled territories in February, 1954.

21. Imports from Japan declined in value by 20% from $482.2 million to $384.1 million but exports rose by 79% from $123.6 million to $221.6 million. The values of imports of certain types of fish, textile yarns, and metal manufactures were greatly reduced. Principal changes in exports to Japan were sugar, which increased from $10.7 million to $65.6 million, and oil-seeds, oil-nuts, and textile fibres which also registered con- siderable increases.

Indonesia

22. In 1952 Indonesia was the best customer for Hong Kong products. In the latter half of 1953 shortage of foreign exchange restricted this country's buying interest. Imports in- creased in value by 60% from $27.8 million to $44.6 million, but exports declined sharply from $528.0 million to $371.9 million, a drop of 29%.

United States of America

23. Imports improved considerably towards the end of the year but exports were restricted pending clarification of the procedure for licensing Chinese-type presumption goods. Much progress was made in this matter towards the end of the year and there were signs that exports would improve.

24. An Assistant Director visited London and Washington in May for trade consultations with British and United States officials.

25. A slight increase in the value of imports from the United States from $221.0 million in 1952 to $224.9 million in the year under review was offset by a fall of 45% in the value of exports from $113.4 million to $62.3 million. The reduced value of exports of animal and vegetable crude materials from $55.2 million to $6.1 million was the chief cause.

III HONG KONG'S PRODUCTS

Exports

26. The list of items of local manufacture shown separately in the trade classification list was expanded in January, 1953, and export statistics for all the more important local products are now available. The total value of these exports during 1953 was $635 million. Although similar figures for 1952 are not available, it is believed that exports increased during 1953 even though the value of total exports was nearly 6 per cent lower. There is little doubt that Hong Kong manufactures held their own in overseas markets in spite of trade restrictions.

27. During the year restrictions were imposed by China, Thailand, Indonesia, Pakistan, and the United States, and Hong Kong manufacturers were faced with difficulties both in obtain- ing supplies of raw materials and in the export of finished pro- ducts to those countries where quotas limited the quantity that could be imported from the Colony.

28. The principal markets for local manufactures in 1953 were Indonesia, which accounted for a third of all such exports, Thailand, Malaya, the United Kingdom, Pakistan, West Africa, the Philippines, Burma, and East Africa.

Raw Materials

29. Because of improved rolling methods in the United States, less black sheet waste waste was available for export and local industrialists could not obtain enough supplies to meet the increasing demands for their products. Alternative supplies were available elsewhere but these were more expensive.

30. Supplies of borax for use in the enamelware industry were slow in coming forward from the United States owing to licensing delays and at one period the Colony's stocks reached a dangerously low level. Brass and copper scrap remained a

prohibited export, except under licence, because of the shortage in the stock and supply of this type of scrap. Aluminium was readily available for the aluminiumware industry and all other supplies were obtainable without much difficulty.

Industrial Development

31. The most encouraging feature of the year was un- doubtedly the continued industrial development and expansion that occurred within the Colony. In Kowloon alone, it was estimated that 345 factories of various types, employing power- driven machinery, came into production. The cotton spinning industry, one of the largest in the Colony, continued to expand, and by the end of the year 213,000 spindles were in operation.

32. A few local manufacturers showed initiative and branched out into the production of new lines which had not been attempted in the Colony before. Among these new pro- ducts were electric clocks, fluorescent light starters, nylon gloves and gramophone records.

Industrial Sites

33. An Inter-Departmental Committee was appointed in January, 1954 under the Chairmanship of the Acting Director of Commerce and Industry to investigate the development of new industrial sites. The Committee held several meetings but the final report had not been completed by the end of the financial

year.

IV TRADE PROMOTION

General

34. The Trade Development Division was established in August, 1953, when it was decided that the Trade Control Division, formerly the Economic Division, was becoming un- wieldy. An Assistant Director was appointed to take charge of the three sections dealing with trade inquiries and trade pro- motion; Comprehensive and Tourist Certificates of Origin for

locally-produced Chinese-type goods exported to the United States; and Imperial Preference Certificates and ordinary Certificates of Origin in respect of exports of local products.

Trade Promotion

35. The duties of this section were numerous. It answered innumerable trade enquiries, dealt with trade disputes and generally assisted in every way possible to advertise the Colony and its products, and to promote trade. The Trade Enquiries Bulletin, a monthly stencilled sheet, which was started the previous year, was continued, but emphasis was switched from local to overseas distribution in an endeavour to publicise the Colony abroad. By the end of the year the monthly distri- bution had risen from 1,400 copies to 6,000, of which 4,000 were sent abroad. From the reception accorded to the Bulletin by overseas recipients, there was every indication that it was serving a useful purpose and that the overseas demand would continue to expand rapidly.

36. During the year it was decided to adopt a new lay-out, to change the name to "Trade Bulletin", and to issue it in printed form. The Bulletin was printed for the first time, with the co- operation of the Government Printer, in December, 1953. Besides trade enquiries, details of industrial development in the Colony were included, together with trade statistics, as well as notices on controls, and other general trade matters arising both in the Colony and overseas. With the inclusion also of articles on the Colony's industries and services, the publication gradually assumed the stature of an informative trade journal.

37. A new and detailed list of the Colony's many products was compiled and was published in the Bulletin, as well as being printed as a separate leaflet for the use of business visitors. The assembly of a commercial reference library was started and details of new books acquired were published regularly in issues of the Trade Bulletin. An increasing number of local business men called at the department to make use of the books available.

38. Besides being responsible for the distribution, both locally and overseas, of trade publications about Hong Kong, the Trade Promotion section also helped to produce the "Hong Kong Directory" for the Washington State Third International Trade Fair, which was held in Seattle in February, 1954, and the "Directory of Hong Kong Products" for the 1954 British Industries Fair. Over 1,000 copies of the Colony's Annual Report for 1953 were despatched by the section to Chambers of Commerce and other appropriate addresses overseas, in an endeavour to stimulate more interest in Hong Kong.

39. Assistance was given to the Chinese Manufacturers' Union in advertising abroad and preparing for the 11th Exhibi- tion of Hong Kong Products, which was held from 14th December, 1953, to 12th January, 1954. This proved to be the most successful annual exhibition so far, with attendance exceeding one million for the first time.

40. Help was also given to the Hong Kong British Industries Fair Committee in arranging for the Colony's parti- cipation in the 1954 Fair in London.

41. The Assistant Director, Trade Development, attended the Washington State Third International Trade Fair in Seattle as one of the Colony's two representatives, the other being Col. H. Owen Hughes, O.B.E., E.D., who represented the Hong Kong General Chamber of Commerce, which set up the Committee to handle the Colony's participation in this Fair. A comprehensive selection of local products likely to attract attention in the United States was exhibited with moderate success. Over 1,500 copies of the Directory mentioned above were mailed to leading Chambers of Commerce and business houses in North America in advance of the Fair, and some 3,000 copies were distributed at Seattle during the Fair, together with numerous other publications about Hong Kong. Station K.I.R.O. in Seattle featured a broadcast on the Colony's exhibit during the Fair, and this was re-broadcast by Radio Hong Kong on the last day of the Fair.

Comprehensive and Tourist Certificates of Origin

42. With the sympathetic co-operation of the Special Re- presentative in Hong Kong of the Director of Foreign Assets Control of the United States Treasury Department, great pro- gress was made during the year in clearing locally-made Chinese- type goods for export to the United States. On 1st April, 1953, only 8 items could be sent to the United States under Compre- hensive Certificates of Origin. By the end of the year under review 49 types of commodities, formerly embargoed, were re- leased, and discussions were continuing on numerous other items.

43. The full list of items for which Comprehensive Certi- ficates of Origin could be obtained under approved procedures, at the end of March, 1954, is as follows:-

Bean curd and rice sticks

Bean thread

Brass trays

China-type tea from Formosa

Confectionery

Cork pictures

Cotton cloth gloves

Cotton piece-goods and cotton yarn

Cotton string gloves

Cotton embroidered goods produced in factory-type

operations

Cotton waste

Cotton wearing apparel as follows:

(a) Men's shirts

(b) Women's garments (whether or not embroi- dered), including blouses, nightgowns, under- garments and aprons.

bed sheets and dresses.

Dolls

Embroidered footwear

Embroidered religious vestments made at the Convent

of the Maryknoll Sisters

Firecracker punk

Hardwood furniture, including camphor-wood chests

Hoi Sin sauce

Iron and tin pictures

Ivory manufactures

Jade, i.e., green jade, cut and polished jade, and jade

stones on which designs had been cut

Japanese ginger processed in Hong Kong

Japanese porcelain decorated in Hong Kong

Joss candles

Linen embroidered goods

Machine-made cane webbing

Made-up silk garments

Mats and squares of Formosan seagrass

Needlepoint tapestries

Oyster and oyster sauce

Pewter and tinware novelties

Plum sauce

Preserved ducks

Preserved plums

Preserved turnips

Pincushions

Rice powder

Salted beans

Salted dried fish

Sandalwood fans

Shrimp sauce and paste

Shrimp noodles

Silk and rayon folding waste-paper baskets

Silk piece-goods

Slab and white rock sugar

Soy sauce

Tungsten ores and concentrates

Waterchestnuts

Wet bean curd

Wheat starch

44. A procedure was also introduced for the issue of special Certificates of Origin for goods purchased from approved shops and factories by tourists.

Imperial Preference Certificates and Ordinary Certificates of

Origin

45. The demand for these Certificates by local manufac- turers grew steadily during the year, owing to the rise in exports of local products and the increasing insistence upon provision of these Certificates by importing countries. With the assist- ance of the Director of the Hong Kong Government Office in London, manufacturers achieved a better understanding of the advantages of exporting local products under claim to imperial preference and of the procedure involved.

46. During the year 332 factories were registered for the first time for ordinary Certificates of Origin for destinations other than the United States.

47. The considerable increase in all types of Certificates issued and in the total revenue collected during the year is shown in the following table:

1952/1953

1953/1954

Certificates of Origin

28,756

48,357

Comprehensive Certificates of Origin

471

6,073

Imperial Preference Certificates

20,146

30,593

Total revenue collected

$302,835

$638,880

LIBRARY

48. A table showing a breakdown by commodities and values of Certificates issued during the year under review is at Appendix XII.

Trade Advisory Committee

49. This Committee met three times during the year. was replaced at the end of 1953 by the newly-constituted Trade and Industry Advisory Committee.

50. The advice which the Trade Advisory Committee gave to the department over the past two years was invaluable and tribute is due to all its members, who devoted much time and energy in assisting the department in its work. The unofficial members who served so well were Messrs. J. D. Clague, C.B.E., M.C., U Tat Chee, O.B.E., Tse Yu Tsuen, C. W. Sewell and J. H. Hamm.

Trade and Industry Advisory Committee

51. This new committee, which has wider responsibilities than its predecessor, particularly in regard to industry, replaced the Trade Advisory Committee in January, 1954. The Com- mittee was constituted as follows:

Director of Commerce and Industry (Chairman)

Hon. Kwok Chan, O.B.E. and Mr. J. Finnie, representa-

tives appointed by the Colonial Secretary

Mr. J. D. Clague, C.B.E., M.C., representative from the

Hong Kong General Chamber of Commerce

Mr. Wong Ping Ying, representative from the Chinese

General Chamber of Commerce

Mr. U Tat Chee, O.B.E., representative from the

Chinese Manufacturers' Union

Secretary, Commerce and Industry Department

(Secretary)

52. The terms of reference of the committee were "to advise the Director of Commerce and Industry on all matters, other than labour, which affect the Colony's trade and industry". The Chairman was empowered to co-opt advisers and appoint sub-committees.

53. The Committee met in January and February, 1954, and gave advice to the department on a wide range of subjects.

54. A sub-committee, the Export Trade Development Sub-Committee, was formed in January to suggest ways and means whereby the department could assist in developing trade by improving standards and eliminating inferior shipments of products.

V — TRADE CONTROLS

55. Import Licensing:

A break-

The total number of import licences issued during the year ended 31st December, 1953, was 92,673 compared with 82,773 in the previous year. down of countries is given at Appendix VII. The Import Licensing Office continued to work under pressure until October, 1953 when the number of licences issued eased off. The scope of the previous General Import Licence and the range of countries from which special licences were not required were extended in November, 1953. The list of goods requiring special licences if imported from any source was also much reduced. These factors contributed to a general falling off in the number of licences issued.

56. Export Licensing:

The total number of export licences issued during the year was 161,952, an increase of 3,909 over the previous year. A breakdown by groups of commodities and months, with the previous figures for comparison, is shown at Appendix VIII.

57. Essential Supplies Certificates: During the year 17,652 applications passed through the Essential Supplies Office. The totals of these applications in 1951 and 1952 were 17,750 and 13,865 respectively.

58. It was necessary on occasions to suspend the importa- tion of some commodities except for direct sale to an end-user. This policy was enforced for about six months when the situation improved except for radio valves and ball-bearings. The issue of these certificates is determined by local needs.

59. Appendix IX gives the number of certificates issued for supplying countries together with those of the two previous calendar years for comparison.

60. Price Control: All remaining controls were lifted on 10th April, 1953 and the Price Control Office ceased to function.

61. Relaxations: On 27th October, 1953, transhipment of gold, provided it was not owned by a resident of Hong Kong, was authorized through the Colony.

62. Restrictions on the import of goods of Japanese origin were progressively relaxed during the year. After 10th February, 1954 licences were freely granted for all re-exports to scheduled territories.

63. The prohibited export of private cars carrying not more than six passengers to China was relaxed on 29th October, 1953. Only one car, of German origin, was exported before the end of the year.

VI - STATISTICS

64. Import and export trade declarations received totalled 627,074 compared with 576,310. Preminary trade figures were completed a few days after the end of each month and printed trade statistics were available to the public less than a month after the period to which they referred.

65. Revenue collected by the Statistics Office in respect of trade declarations and special services to firms amounted to $632,964, an increase of more than $50,000 over the preceding year.

66. Tables showing the number of manifests and declara- tions received during 1952 and 1953 are at Appendices X and XI.

67. Other work consisted mostly of routine services for the Royal Observatory, the Crime and Traffic Departments of the Police Force, the Urban Services Department, and the Social Welfare Office. Hollerith cards, punched for this work, totalled 190,121. Meteorological analyses for the Royal Observatory were mainly in respect to the approaches to Kai Tak Airport. The retail price index and the statistical supplement to the Gazette were compiled each month and various returns com- pleted for United Nations Organizations.

68. The retail price index figures for the end of each quarter of 1953, on the basis of March 1947-100, were as follows:

March June Septem- Decem-

ber

I. Food (including drinks)

121

128

148

139

II.

Rent

103

104

III.

Clothing (including footwear)

IV.

Fuel, light and cleaning:

(a) fuel

104

102

(b) electric light

March June

Septem- Decem-

ber

V. Other items:

(i) education

132

138

(ii) tobacco and cigarettes

113

(iii) doctors and medicines

110

109

108

(iv) fares

100

(v) household equipment

118

115

117

(vi) hair-dressing

123

122

(vii) newspapers and stationery

173

(viii) shoe repairs

(ix) rates

100

GENERAL RETAIL PRICE INDEX

(March, 1947 = 100)

115

119

130

125

General

VII - PREVENTIVE SERVICE

69. Considerable changes were made in the internal organizations. Previously the Divisions within the Service were geographically independent units with responsibility for all types of work; the new grouping allocated Colony-wide responsibility for a selected group of duties to each Division. Headquarters Division now handle mainly administration and prosecution work, "B" Division, preventive work and the supervision of industry, and "C" Division, collection of revenue. Special arrangements were made for the New Territories. This arrangement has facilitated concentration on particular tasks and is considered to have increased the efficiency of the Preventive Service without increasing the establishment.

70. Other measures to improve the Service were taken. These included a revision of standards of discipline. A series of Standing and Routine Orders was introduced and added to throughout the year. Some items of uniform were issued pend- ing a full-scale issue in 1954/55. An inspection parade of the whole Service was held for the first time on 21st December, 1953.

71. A new Revenue warehouse for the examination and storage of air freight was built at Kai Tak Airport and brought into service on 1st March, 1954. Examinations had previously taken place in offices of airline companies at the Peninsula Hotel.

72. Visits were paid by representatives of the Philippine, Thai, Singapore, and South Korean customs services to observe Hong Kong methods.

Seizures

73. Seizures of dutiable commodities were, in general, substantially lower than in the previous year. They approxi- mated in volume to those of 1951/52, possibly reflecting diminished smuggling activity consequent in the heavy seizures of 1952/53 and the intensified preventive activity in the year under review. In spite of vigorous control and strenuous patrolling only 242 illicit stills were discovered compared with 1,330 and only 5,393 gallons of fermenting material compared with 30,841 gallons. In contrast, seizures of Chinese pro- prietary medicines were up by 50%.

74. Seizures of specified articles, imports and exports prohibited save under licence, are set out in Appendix XXIX. Detailed comparisons with last year are not possible because of different grouping of items or use of different units. The total tonnage of all seizures appears higher than that of the previous year although the numbers of arrests and seizures in this category were lower. The introduction of the Emergency (Importation and Exportation Ordinance) (Amendment) Regula- tions in July, 1953, undoubtedly strengthened the powers of the Service and helped to reduce smuggling.

75. For all types of offences there was a noteworthy decline in the number of cases. Persons arrested totalled 392 compared with 980 in the previous year. Of these 293 were convicted and 15 absconded with forfeiture of bail. In addition, 899 seizures, compared with 3,996, were made without an arrest,

76. Supplementing the above seizures Direction Orders issued under the Emergency (Exportation) (Miscellaneous

Provisions) Regulations, 1951, resulted in goods of strategic importance of a total value of $25 million approximately being securely stored pending release to bona fide end-users in the Colony or for export under special licence.

Transport

77. Radio-telephone equipment was installed on the patrol launches towards the end of 1953 and provided regular com- munication between vessels and Headquarters. An additional Revenue launch was brought into service early in March, 1954, to guard the entrance into the harbour through the Laichikok passage. 45,343 native craft were stopped and searched in and around the harbour, 1,662 ocean-going vessels were searched at buoys or wharves, and Macau ferry boats were searched daily.

78. The nine vehicles allocated to the Service were in constant hard use. They included one new Austin light van added to the establishment.

VIII — DUTIABLE COMMODITIES

79. The total net revenue collected, $87,908,722.49, was lower by $2,150,000 than last year's record figure but was still $2,360,000 higher than the figure for 1951/52, the previous second highest total. The major single source of revenue was again duty on tobacco which brought in $34,753,820.61. The next most important item was liquor ($18,335,617.13) closely followed by hydrocarbon oils ($16,742,842.71).

80. The pattern of revenue generally showed no outstanding variation except that hydrocarbon oils increased by over $11 million, compared with tobacco and liquor, down by $450,000 and $380,000 respectively. Fees from licences of various types were up by $109,000 but proceeds from the sale of seizures dropped nearly $1 million. Revenue from fees for official certificates more than doubled. Further details are contained in Appendices XIII to XXVI.

IX — BUSINESS REGISTRATION

81. Revenue from business registration fees was $2,175,000 less than in the previous year.

82. By 31st March, 1954, the following position had been reached:

Applications registered

55,763

Demand notes issued

41,001

Original certificates issued in 1953/54

9,368

Cumulative total of certificates issued

34,828

Certificates renewed in 1953/54

7,542

Revenue collected 1953/54

$3,583,424

Rice

X-DEPARTMENTAL TRADE ACTIVITIES

(Where figures are given in brackets in this chapter of the report they refer to similar figures for the previous year)

83. 99,145 metric tons, all of edible grades, were imported on Government account between 1st April, 1953 and 31st March, 1954. Sources and percentages were:-

Metric tons

Thailand

Burma

66,266 (112,946)

Percentage

66.8 ( 68.7)

18,635 (30,430)

Indo-China

14,244 ( 2,669)

Other countries

( 18,338)

99,145 (164,383)

18.8 (18.5) 14.4 (1.6) (11.2)

100.0 (100.0)

No deliveries were taken after November, 1953, but stocks at the end of the year were almost the same as on 31st March, 1953. Sales of rice, amounting to 102,968 metric tons, were 19,370 tons less than in the preceding year because of ample commercial supplies and the dislike of the public for certain

unfamiliar and relatively expensive rice purchased in 1952 when supplies were scarce. A contract was made in January with the Thai Government for estimated requirements for 1954.

84. Commercial imports to bridge the gap between Govern- ment supplies and normal import demand amounted to 103,550 tons. Sources are given below:

Edible grades Other grades

metric tons

Thailand

Indo-China

China

61,385 (81,969)

450 (7,610)

metric tons

40,554 (19,900) ( 2,440)

526 (7,477)

635 ( 369)

62,361 (97,056)

41,189 (22,709)

Exports totalled 11,559 tons as against 998 tons for the previous

year.

85. Greater availability of commercial rice and willingness of the public to pay proportionately much higher prices for rice more attractive in appearance in preference to unfamiliar varieties led to a noticeable decline in sales of Government rice during June, July, and August, 1953. To ensure a more rapid turnover it was necessary in September to impose various restrictions on commercial imports, and to reduce the price of rationed rice.

86. Government retail prices were keyed to the purchase price of Thai rice, generally preferred by the local consumer, but almost all other varieties and grades, acceptable only in times of scarcity, were sold at prices involving considerable financial losses. The price of Thai rice, on the other hand, which had been purchased on preferential terms, was main- tained at a figure consonant with replacement costs. The following retail prices in cents per catty indicate the changes during the year:

April, 1953 March, 1954

Siam white 5% broken

15%

}}

Pearl rice 15/20% broken

Burmese Sughandi 42% broken Indo-China white 40%

Siam broken rice Al super

87. A complete re-issue of rice ration cards was undertaken during the year and all persons holding identity cards, together with their children over the age of two years, became entitled to be represented on a ration card. The net cost of this large operation was about 10 cents per rationed person, after allowing for the charge of 10 cents for each application form. The figures below compare the rationed population in 1953 and 1954:

31st March, 1953

Ration

Cards

Rationed Population

351,830

1,618,999

483,523

1,419,099

31st March, 1954

It is estimated that about 500,000 people who were eligible to be included in ration cards were still not represented. An unascertainable but certainly large number of dead or fraudulent cards disappeared in the re-issue. The daily ration remained at 7.2 taels (9.6 ozs.) per head, issued in three 5-day periods each month.

88. At the close of the year there were 198 approved ration shops, a net increase of one shop. Government rice was sold to:

metric tons

82,599.03 (115,808.54)

Ration card holders

Hospitals, institutions, heavy workers,

etc.

6,556.75 ( 5,146.09)

Rice merchants

12,750.12 (1,383.07)

Storage losses on lots cleared

101,905.90 (121,674.07)

1,061.94 (

663.66)

102,967.84 (122,337.73)

89. Net loss in storage was 0.67% against 0.52% last year largely because some stock dated back to 1952 and there was a slower rate of turnover. The average net loss in transit was 0.67%, an improvement on the average of 0.97% last year.

90. Typhoon "Susan" passed close to the Colony on 19th September, 1953, and ripped off a large portion of the roofing of the Government godown on Chatham Road. 4,629 bags of rice were badly damaged and were sold as such at a net loss of $213,432.

Sugar

91. Sugar requirements for the Colony were procured through Ministry of Food contracts, the last receipts being in January, 1954. During the year 21,707 (23,332) tons of refined sugar and 6,805 (5,445) tons of raw sugar were distributed through recognized distributors, mostly pre-war importers, and through approved ration shops at controlled prices. In general, supply was adequate to meet the normal annual demand, which now appears to be about 30,000 tons. Sales of sugar for the preserved fruit and ginger industry amounted to about 2,000 tons.

92. Freeing of the sugar trade in the United Kingdom in December, 1953, led to discussions with local distributors and, with their ready co-operation, Government stocks were cleared without financial loss early in March, 1954. Rationing of sugar was discontinued in January and, at the beginning of March, free commercial import of sugar was permitted subject only to Government's potential obligations under the International Sugar Agreement.

93. The price of Government refined sugar was reduced in October from 39 cents to 36 cents per lb., and that of raw sugar from 35 cents to 32 cents per lb.

Frozen meat

94. Main frozen meat requirements of the Colony con- tinued to be met by Government purchases by public tender and

distribution continued through the Dairy Farm Ice and Cold Storage Co., Ltd. Stocks on 1st April, 1953, were high and intakes at 1,827 tons represented a reduction on the previous year's figure. Offtakes averaged 358.70 tons per month. Con- siderable fluctuations in the import from the mainland of live cattle and swine for slaughtering affected offtakes of Govern- ment stocks and prices but, at the end of the year, supplies, although on a reduced scale, were fairly steady.

95. Supplies of Government meat from Australia were readily available and quality improved consistently. A com- bination of favourable factors made it practicable in December 1953 to introduce a substantial reduction in wholesale prices averaging 9 cents per lb. for beef and 16 cents per lb. for lamb, pork, veal, and mutton. At the end of the year, stocks were better balanced to meet local demand than hitherto.

Other foodstuffs

96. Reserve stocks of certain other essential foodstuffs, import of which was not under restriction, were held and turned

over.

Coal and coke

97. Coal and coke for local consumption continued to be bought solely on Government account save for certain specialized varieties, a small quantity of coal for re-export, and direct imports by utility companies. Government imports amounted to 71,750 tons:

Lump bituminous

Dust bituminous

Dust anthracite

Coke, foundry

Run of mine, bituminous

tons

67,901 (201,495)

2,000 ( 3,441)

50 (

100)

1,799 ( 1,802)

(3,259)

71,750 (210,239)

Sources of supply were as follows:

India

Indonesia

South Africa

Japan

Indo-China

United Kingdom China Australia

Coal

tons

57,519 (147,076)

2,811 (

Coke tons

1,659 (1,224)

3,259)

(

}

9,471 ( 6,059)

125 (275)

100 (

50 ( 100)

15 (304)

( 37,521)

( 14,280)

(

98. Supplies from India were regularly available and of good quality but a temporary shortage of shipping towards the end of 1953 caused a serious reduction in stocks which, at one period, were less than 5,000 tons. It was necessary to resort to a temporary scaling down of buyers' indents during the period of scarcity.

99. During the year 87,610 (87,381) tons were imported directly by electricity and gas companies and by the Green Island Cement Co., all of which maintain their own reserve stocks. Other commercial imports for local consumption amounted to 13,271 tons from Indonesia and Tonkin. About 13,000 tons were imported for re-export.

100. Abolition of Indian export surcharges and stable freight rates at a generally low level enabled the price of coal to be reduced progressively by $5 per ton from $120 per ton at the beginning of April until on the 2nd November the price was fixed at $105 per ton for all varieties. The average sale price was $111.73 ($131.28) per ton.

101. An analysis of coal sales is given below:-

Shipping (bunkers)

Industry

Dockyards (naval and civil)

Kowloon Canton Railway

Service and Government

Restaurants and hotels Household

tons

36,815 ( 67,610) 55,912 ( 67,498) 6,053 (9,148)

5,346 (

8,030)

9,268 ( 9,413)

1,068 ( 1,194)

1,396 ( 1,438)

115,858 (164,331)

It will be seen that the decline in consumption is largely attributable to a reduced demand for ships' bunkers. Average monthly sales amounted to 9,655 (13,696) tons.

Firewood

102. Commercial firewood was plentiful during the year and sufficient for normal consumption. This is estimated at about 17,000 tons per month although demand is somewhat seasonal. Consumption did not differ materially from the estimate for 1952. Principal sources of supply were Borneo, Malaya, and Wuchow. Government sales amounted to 3,391 tons. Sale price ex yard was reduced in December, 1953 from $8 to $6 per picul ex yard, a figure well below commercial retail price but above the wholesale price. The average sale price was $6.38 ($7.37) per picul. The import or export of commercial firewood was not restricted.

Accounts

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

104. Comparative annual turnover to the nearest million dollars is shown below:

Food

Fuel

Japan trade

1951/52

$184,000,000

1952/53

$161,000,000

1953/54

$151,000,000

25,000,000

22,000,000

14,000,000

323,000,000

105. The net loss on the year's operations was $12,910,329.88, which will be transferred against the Colony's Trading Reserve Fund. This figure may be compared with the following surpluses in previous years:

1951/52

1952/53

$10,300,000

3,500,000

106. The report of the auditors, Messrs. Lowe, Bingham and Matthews, the Consolidated Balance Sheet, and the State- ments of Accounts of the Food and Fuel Sections are contained in Appendix XXXII.

XI - LEGISLATION

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

Ordinance No. 30 of 1953

Ordinance No. 37 of 1953

G.N. No. A 72 of 1953

G.N. No. A 80 of 1953

G.N. No. A 88 of 1953

G.N. No. A 99 of 1953

G.N. No. A 22 of 1954

Business Regulation (Amendment) Or- dinance, 1953

Tallyclerks (Licensing) (Amendment) Ordinance, 1953

Price Control Order, 1946 Amendment to the Schedule

Reserved Commodities (Re-export) (Amendment) Order, 1953

Revenue Reward Fund

Emergency (Importation and Exporta- tion Ordinance) (Amendment) Regula- tions, 1953

Reserved

Commodities (Re-export)

Amendment (No. 1) Order, 1954

XII — STAFF

108. Mr. P. C. M. Sedgwick, Cadet Officer, Class I, relin- quished his appointment as Director of Commerce and Industry on 8th April, 1953 when he went on vacation leave.

109. Mr. H. A. Angus, M.B.E., Assistant Director, was appointed Acting Director of Commerce and Industry with effect from 8th April, 1953.

110. Mr. C. G. F. F. Melmoth, Cadet Officer, Class II, relin- quished his appointment as an Assistant Director of Commerce and Industry when he was transferred to the Colonial Secretariat with effect from 24th April, 1953.

111. Mr. T. D. Sorby, Cadet Officer, Class II was appointed an Assistant Director of Commerce and Industry with effect from 24th April, 1953.

112. Mr. K. S. Kinghorn, Cadet Officer, Class II, was appointed an Assistant Director of Commerce and Industry with effect from 14th August, 1953.

113. Mr. H. M. A. Bristow, Cadet Officer, Class II, relin- quished his appointment as an Assistant Director of Commerce and Industry when he was transferred to the Labour Depart- ment with effect from 14th August, 1953.

114. Mr. G. M. Tingle, Cadet Officer, Class II, was appointed an Assistant Director of Commerce and Industry with effect from 3rd February, 1954. On 15th February he took over the Revenue Division from Mr. R. M. Hetherington, Cadet Officer Class II, who relinquished his appointment as an Assistant Director and went on vacation leave on 23rd February.

115. Mr. G. D. Binstead, M.B.E., Senior Superintendent of Police, on secondment for special duties, relinquished his appointment as Assistant Director of Commerce and Industry with effect from 10th September, 1953 and went on vacation leave.

116. Mr. W. P. Montgomery, Trade Promotion Officer, resigned with effect from 1st August, 1953.

117. Mr. W. H. E. Colledge, Senior Revenue Inspector, was promoted to Chief Preventive Officer with effect from 9th October, 1953 when he took over from Mr. W. G. Humphreys, Acting Chief Preventive Officer, who went on leave prior to retirement on 9th October.

118. Mr. D. H. Knox, Revenue Inspector, Class I, was promoted to Senior Revenue Inspector with effect from 22nd September, 1953.

119. Mr. L. C. Millington, Revenue Inspector Class I, was promoted to Senior Revenue Inspector with effect from 9th October, 1953.

120. Mr. C. R. M. Lawrence, Executive Officer Class I, was transferred from the Colonial Secretariat for temporary duty in the Trade Development Division with effect from 11th January, 1954.

121. Mr. W. R. Norman, Executive Officer Class II, was appointed Secretary and Mr. S. G. Dark, Executive Officer Class II, designated Accountant with effect from 8th August, 1953.

122. Mr. Yeung Him, M.B.E., Executive Officer Class II, went on leave prior to retirement with effect from 19th March, 1954.

123. Mr. Chin Sit Kee, Executive Officer Class II, was transferred to the department on 15th February, 1954.

XIII

GENERAL

REPORT OF THE DIRECTOR OF THE HONG KONG

GOVERNMENT OFFICE IN LONDON

124. Although the London Office deals with a wide variety of matters affecting Hong Kong, its main services are two: Trade Promotion and Public Relations. How these services were provided during the current year will be shown later. The background against which Hong Kong and United Kingdom mutual trade has to operate forms this introduction.

125. The United Nations resolution of May 1951 calling for an embargo against strategic exports to China brought about an immediate strengthening and extending of Hong Kong and United Kingdom licensing control. In the United Kingdom all consignments destined for China and Hong Kong required Export Licences and a very large number required the produc- tion of Hong Kong Import Licences before they could be

obtained. In Hong Kong all items classified as strategic require Essential Supplies Certificates before Import Licences can be granted. Such severe controls covering so wide a scope are, of necessity, general in description with the result that queries arise interminably as to whether or not a particular item is controlled. These problems of definition require patient investi- gation. It is not surprising that so many United Kingdom and Hong Kong merchants have found trading difficult.

126. The rapid and extensive development of Hong Kong industry and the expansion of overseas markets-particularly the United Kingdom-has introduced Imperial Preference problems. Briefly, the Preference Regulations say that where a certain proportion of the cost of an article can be attributed to expenditure incurred within the Empire then the goods con- cerned, provided they are consigned direct from a port within the Empire, may be admitted to the United Kingdom either duty free or at a reduced rate. Documentation in support of claims to Preference is immense and lengthy delays occur both in preparation and examination of these claims. Most delays occur in H.M. Customs and Excise in London-where claims to Preference on behalf of Hong Kong manufacturers exceed by far claims made on behalf of manufacturers in other parts of the Commonwealth. In the meantime, shipments arrive and deposits of full duty are called for until decisions are reached. This Office maintains a complete record of the Preference position of over 400 Hong Kong manufacturers, and, in addition to processing these claims through H.M. Customs and Excise, advises United Kingdom importers, Hong Kong manufacturers and accountants.

127. Ignorance of this massive documentation for Preference is partly responsible for the fantastic allegations often made by United Kingdom industrial interests, mostly through the medium of the Press, that Hong Kong goods are made in Japan or else- where. Such attacks are always taken up by the Office and there have been many in the past year. Although it is a relatively easy matter to present the facts, it is much more difficult to persuade critics to accept them. The facts, and their manner of presentation, are not at fault.

128. It will be seen that trade promotion in London is largely an attempt to minimize the effect of restrictions and difficulties. Similarly, in the sphere of Public Relations affecting trade matters much time has to be spent in correcting errors and misunderstandings. It is hoped that the future will bring a United Kingdom understanding of the facts about Hong Kong industry and an easing of artificial trade barriers, when positive trade promotion can be undertaken.

TRADE PROMOTION

Liaison with United Kingdom Government Departments

(a) Board of Trade-Export Licensing Branch

129. The Office has continued to assist United Kingdom agents of Hong Kong utility undertakings in their efforts to ship materials. For some of these undertakings Essential Supplies Certificates are deposited with this Office; export licence applications covering individual items as they become available for shipment are then endorsed here and forwarded to the Board of Trade. This prevents the constant movement of Essential Supplies Certificates or Import Licences backwards and forwards between the agent concerned and the Board of Trade. Some agents are now in a position to submit individual Hong Kong import licences in support of their export licence applications, so that during the year the number of applications dealt with through the Office fell from 650 to 560. Where sudden and urgent demands for equipment arose the Office sponsored applications for export licences in the absence of supporting documents (at the same time notifying the Hong Kong Depart- ment of Commerce and Industry) and export licences were issued exceptionally-subject to the submission to the Board of Trade of the proper documents in due course.

In this way shipping opportunities were not missed.

130. A great deal of time was spent, mostly on the telephone, in advising United Kingdom merchants as to whether or not particular items were subject to the embargo. Often this could be done effectively from the Office records but frequent

approaches had to be made to the Export Licensing Branch. Since the list of embargoed items is necessarily drawn up in broad headings, it is not always a simple matter to decide whether an item falls within the embargo. Often, differing interpretations were made by the Board of Trade in London and the Department of Commerce and Industry in Hong Kong and the Office spent much time in endeavouring to keep the lists in step with one another-sometimes by producing cabled replies to queries from Hong Kong within two hours. Such clarifica- tions obtained on behalf of the Department of Commerce and Industry numbered approximately 50.

(b) Board of Trade-Import Licensing Branch

131. The United Kingdom Open General Licence applies to almost all goods produced in Hong Kong with the exception of basketware. Basketware is subject to quota restrictions since the industry in the United Kingdom is largely in the hands of the blind. Normally such quotas are allocated to United Kingdom importers on a performance basis taking a typical pre-war basis year, but as the quota was established to assist the Hong Kong industry it has been possible to obtain the agreement of the Import Licensing Branch to allow Hong Kong itself to make the allocations. When these are made the Office is given the name of the exporter concerned, and of his nominated importer in the United Kingdom; it then advises the Board of Trade so that United Kingdom importers may receive licences. The quota stands at a total of £19,000 and in view of the reasons for its establishment it is unlikely that an increase would be granted if sought.

Department

132. This Department meets most of the criticisms and representations made by United Kingdom manufacturers and trade associations on Hong Kong competition. Close relations exist between the Department and the Office so that an exchange of detailed information may take place to the advantage of all concerned. The most sustained criticism during the year came

from the Home glove industry in protest against the increasing volume of Hong Kong glove exports to the United Kingdom. The critics claimed that the gloves were made in Japan and were being imported into the United Kingdom under claim to Imperial Preference by false pretences. Concurrently with this approach to the Board of Trade the allegations were continued in the columns of the Press. Detailed information was given to the Commercial Relations and Export Department on the extent of the Hong Kong Glove Industry including a specially prepared report covering origins, organization and productive capacity. Perhaps it may be mentioned here that these Hong Kong gloves are made almost exclusively from Bradford wool. Similar co-operation existed where other, less widely publicized, attacks were made on Hong Kong industrial competition.

(d) The Colonial Office

133. It is not often that assistance from the Colonial Office has to be sought, but it is always readily available. The Office, on occasion, provided information of a statistical, personal, or general nature to those officials dealing with Hong Kong affairs. A close contact was maintained in connexion with embargo matters.

(e) H.M. Customs & Excise

134. Appendix XXXIII of this report gives particulars of the Imperial Preference Regulations and their effect on Hong Kong trading with the United Kingdom. It is unfortunate that these Regulations should be so complex since frustrating delays can occur through ignorance of precise requirements which freeze capital deposited as duty. H.M. Customs and Excise, as guardians of the United Kingdom revenue, interpret the require- ments so rigidly that the misplacement of a word in an endorsement on a Certificate of Origin can be sufficient to require a deposit of full duty until a fresh certificate is forthcoming. This degree of accuracy and devotion to detail nevertheless stands the Colony in good stead when critics suggest that Hong Kong goods are obtaining the benefit of Imperial Preference under false pretences. There are over 400 Hong Kong factories

which enjoy fully, or in part, benefit of the Imperial Preference Regulations. A record is kept in this Office of the position of each factory and from this it is possible to advise United Kingdom importers when, as is frequently the case, they are in trouble over consignments. In addition it is possible to keep a check on the progress through H.M. Customs and Excise of claims made by these factories, and clarifications are often made by cable to the advantage of all concerned. Since the Financial Year 1953-54 has seen such a tremendous increase of trade with the United Kingdom Imperial Preference matters have demanded increasing attention. Visiting accountants on leave from the Colony have been introduced to the responsible officials in Customs with the result that many problems have been cleared or avoided.

135. It is often assumed that because an article is manufac- tured in the United Kingdom it must have an Empire content of 100%. This certainly is not the case, since for example, canvas, supplied to Hong Kong for use in the rubber footwear industry, although spun, woven and finished in the United Kingdom, has a large element of American raw cotton. Such canvas is usually allowed an Empire content of 4% only. Through the year suppliers of a variety of materials for Hong Kong have been in touch with the office so that an agreed Empire content can be arranged with H.M. Customs and Excise before the goods are despatched. This has helped to reduce the delays arising on examination of costings for finished products from Hong Kong as there has then been no need to obtain an acceptable Empire content for the raw materials used, which might then require the redrafting of costings.

136. It should be stated that H.M. Customs and Excise are ready, wherever possible within the rigid framework of the requirements, to facilitate claims to Preference. During the year it has been possible to establish a system whereby timbers of North Borneo or Sarawak origin rough sawn in Hong Kong mills may be admitted to the United Kingdom under a simplified procedure without the burden of heavy and exclusive documenta- tion.

COMMERCIAL RELATIONS

137. It is in the field of Commercial Relations that it is possible to see some positive trade promotion. The main activity of this kind is the British Industries Fair at which Hong Kong has been represented each year since 1948. Organization of Hong Kong participation in this Fair is an excellent example of the co-operation between Commerce and Government in Hong Kong. The 1953 Fair in common with its predecessors had no funds provided direct by Government although assistance from the Department of Commerce and Industry and this Office was a contribution in kind.

138. All expenses in connexion with the Fair are met from the proceeds of the Hong Kong B.I.F. Directory (a classified guide to Hong Kong Industry and Commerce) in which interested firms can have an entry for no more than $200. (£12. 10s.). In addition, advertising revenue contributed to the funds, with the result that sufficient money was raised for all expenses. This Directory is distributed not only at the Fair but also from the Department of Commerce and Industry and the London Office, and over 5,000 copies have been issued.

139. Organization in London is the responsibility of this Office and, apart from the gradually increasing volume of work throughout the year, throws a heavy and concentrated strain on office organization in the weeks preceding, during, and following the Fair. The key to its efficient organization in 1953 rested perhaps yet again with another Department of the Board of Trade--the Exhibition and Fairs Branch-where preliminary problems were resolved in Committee by a careful and helpful Board of Trade official. It was not until a relatively short time before the Fair opened that final details were known about the amount of space allotted to Hong Kong and the shape it would take. When known it was possible to brief stand designers and obtain plans and estimates. Hong Kong had 825 square feet and there is no doubt that it was able to present an effective display of Hong Kong not only as a great entrepot but as a rapidly developing industrial centre. This was the biggest presentation ever by Hong Kong and the results certainly justified the decision to take as much space as possible. Over

560 inquiries were recorded in addition to the many hundreds which were settled on the spot by handing the inquirer a copy of the B.I.F. Directory--approximately 1,200 directories being so distributed. Over fifty countries were represented by these inquiries. Many distinguished visitors visited the stand and met the leader of the Delegation-Mr. H. J. Collar, C.B.E. Visitors included H.M. The Queen, H.R.H. the Duke of Edin- burgh, the Mayor of Kensington and Lord Salisbury. United Kingdom organizations with an interest in Hong Kong such as the China Association and the Anglo-Chinese Chamber of Commerce arranged functions to welcome the Hong Kong delegation and the Colonial Office gave a reception at the Dorchester Hotel.

140. As an adjunct to B.I.F. 1953 it was possible to arrange, through the Circuits Management Association, a small travelling exhibition for display in London and provincial cinemas. This Exhibition visited Kilburn (London), Balham, Bournemouth, Plymouth, Cardiff, Coventry, Leeds and Doncaster. A full report on Hong Kong's participation in B.I.F. 1953 has been published by the Hong Kong B.I.F. Committee.

Commercial Introduction Service

141. Since over 5,000 commercial firms and trading organiza- tions interested in Hong Kong Commerce and Industry are recorded in the Office card index, it has been possible to make many mutually advantageous commercial introductions. Many inquiries were forwarded to the Department of Commerce and Industry for further circulation locally but most were met from information already available here. During the year approxi- mately 1,400 such inquiries were dealt with. The Office has a comprehensive library of commercial directories which are frequently in demand by those anxious to obtain market reports and survey trading opportunities.

142. These records have enabled Status reports to be given to many United Kingdom inquirers. Where the records fall short rapid assistance has been given by the Department of Commerce and Industry in Hong Kong. Often reports were obtained by cable on a repayment basis.

MF DEP/ PTMENT IJBRARY

Claims

143. It has been possible for the Office to prevent litigation following claims made by United Kingdom importers against Hong Kong suppliers, and claims made from Hong Kong against United Kingdom merchants. In this activity the Office has worked largely through the Department of Commerce and Industry.

144. Although much is being done successfully in Hong Kong to raise the standard of local products, it is unfortunate that consignment supplies sometimes fall below the standard indicated by the sample. This is due in some cases to a forcing down of prices by United Kingdom buyers, which can only result in the eventual supply of an article the quality of which will be very closely related to its price.

145. During the year it has been pleasant to note that fewer claims have been made in both directions.

PUBLIC RELATIONS

146. Over 60 parcels of Hong Kong literature, including the small booklet produced by the Public Relations Office, were despatched to school masters and school children during the year. There is a great demand for this literature and for Hong Kong stamps. At the end of the year to which this report relates several hundred copies of the Hong Kong Government Annual Report were made available to this Office for distribution.

147. Approximately 400 members of the public proposing to take, or seeking, appointments in the Colony raised questions by letter or personal visit. In addition, a very large number asked for information by telephone. All were answered in detail and provided with Hong Kong literature. Queries are

largely centred on the cost of living, but others range from requests for information about quarantine regulations for pets to whether or not it is an offence in Hong Kong to leave the ignition keys in one's motorcar.

148. Writers, speakers and some Members of Parliament were given literature on Hong Kong affairs.

149. In other sections of this Report reference has been made to our relations with the Press. Often this takes the con- structive form of provision of information to leader writers and journalists preparing articles about the Colony. Most frequently the Office is compelled to enter the correspondence columns of the press in an endeavour to correct false allegations about Hong Kong trade activities. A great deal of such corres- pondence was entered into in connexion with the production and marketing of Hong Kong gloves, needles, shirts and piecegoods. The allegations usually spring from a combination of antagonism towards Hong Kong competition and ignorance of the extent and scope of local industry. Although the facts about local industry are frequently put to our critics, it seems that this antagonism prevents their absorption and acceptance.

OFFICE ACCOMMODATION AND STAFF

150. The Office has three rooms in Grand Buildings, Trafalgar Square, London, W.C.2, two are for general office use and the third is retained for the storage of B.I.F. exhibits and for the use of visitors. For the greater part of the year it was possible to continue to give assistance to visitors from Hong Kong needing temporary office accommodation. However, since accommodation is becoming increasingly restricted it has not been possible to make use of the spare room for this purpose in recent months. It is hoped that space will shortly be obtained so that these facilities may be brought into operation again.

151. The Staff consists of the Director, Assistant Director, Shorthand Typist, Copy Typist and Office Junior. All are keen to present the facts about Hong Kong and to assist the Colony wherever possible. Appendix XXXIV gives approximate figures in respect of some of the Office activities during the year.

H. A. ANGUS,

Acting Director of Commerce and Industry.

APPENDIX I

Comparative Table of Total Values of Imports for the Years 1952 and 1953.

Month

1952

1953

January

February

384,813,064

377,629,705

331,961,187

325,804,619

March

April. May June

July

August

September

284,483,598

385,163,533

284,615,680

362,114,322

300,788,983

314,851,289

268,168,957

361,293,067

306,669,542

306,302,649

279,711,070

268,841,439

340,334,571

298,972,411

October

308,996,667

296,311,547

November

301,153,345

269,583,047

December...

387,790,820

305,802,012

Total

3,779,487,484

3,872,669,640

Average per month...

314,957,290

322,722,470

APPENDIX II

Comparative Table of Total Values of Exports for the Years 1952 and 1953.

January

February

March

April.

May June

July

August

September

October

November

December..

Total

Month

Average per month..

1952

1953

196,736,857

262,456,106

211,381,677

228,121,613

240,361,315

285,035,469

215,717,480

270,562,649

231,569,036

267,243,617

214,067,499

235,544,949

261,618,624

219,902,929

228,561,480

172,348,213

284,568,739

172,765,284

262,227,179

212,213,315

258,442,631

200,882,493

293,757,547

206,644,587

2,899,010,064

2,733,721,224

241,584,172

227,810,102

$ MILLION

1,000

APPENDIX III

900

COMPARISON OF VOLUME OF TRADE,

HONG KONG, 1953 WITH 1952 AND

1951, (MOVING AVERAGE 3 MONTHS).

800

700

600

500

400

1952

1953

1951

300

200

100

NOTE: The curve is plotted on a moving average of the figures for 1953 and of the figures for the corresponding months in 1952 and 1951. Thus the figures plotted for January are the average of the figures for December to February.

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

$ MILLION

600

500

400

300

200

100

APPENDIX IV

VALUES OF IMPORTS AND EXPORTS, 1953 (IN MILLION H.K. $)

Total Imports

Total Exports

Imports from China

Experts to China

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

APPENDIX V

Thousand Long Tons

600-

500-

VOLUME OF HONG KONG'S IMPORTS AND EXPORTS, 1953 (IN THOUSAND LONG TONS)

Total Imports

Total Exports = Imports from China

Exports to China

400

300

200

100

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

APPENDIX VI

Table Showing Total Values of Exports of Hong Kong Products (as in Trade Returns) for the Year 1953.

Cotton piece goods

$ 157,546,165

Cotton yarns

100,158,080

Cotton singlets

72,218,687

Shirts

54,266,636

Footwear....

52,657,487

Enamelled household utensils.

44,194,916

Electric torches.....

35,933,549

Towels, not embroidered

17,026,636

Fruits and fruit peels, preserved, glaced or crystallized

15,175,397

Torch batteries

13,680,353

Lacquers, varnishes and prepared paints

10,875,414

Iron ore

6,841,931

Vacuum flasks and jugs, complete

6,354,456

Embroidered outerwear

5,782,306

Metal Lanterns...

5.390,337

Plastic articles

4,846,381

Bed linen, table linen and toilet linen (including towels), embroidered

4,699,249

Household utensils of aluminium

3,949,226

Torch bulbs

3,396,748

Cigarettes

2,649,931

Cement

2,544,871

Iron and steel bars and rounds...

2,531,665

Underwear and nightwear, embroidered

2,507,743

Tungsten ore (wolframite)

2,383,663

Non-alcoholic beverages and waters (not including fruit or vegetable

juices)

2,373,342

Articles of clothing (e.g., handkerchiefs, shawls, etc.) embroidered,

n.e.s..

2,093,663

Fish, fish products, crustacea and molluscs in airtight containers...

1,612,639

Matches

1,153,293

Seagrass

169,239

Beer (including ale, stout, porter) and other fermented cereal

beverages

159,320

Jams, marmalades, fruit jellies and unfermented fruit juices..

114,581

Total.....

635,287,904

Average per month.....

52,940,659

Austria

APPENDIX VII

Import Licences Issued for the year ending 31st December, 1953

921

Argentine

Japan Jamaica

30734

Australia...

1308

Korea (South)

572

Aden

Luxembourg

Afghanistan

Malaya.....

986

Algiers

Mauritius.

Belgium

1251

Macau

561

Borneo....

197

Madagascar

Belgian Congo

Mexico

Burma

Morocco

Brazil

Norway

623

Bahrein

New Zealand

Czechoslovakia

882

Portugal

393

China

227

Poland....

352

Canada

1487

Philippines

196

Cuba

Pakistan

Ceylon

Persia

Chile

Paraguay.

Cyprus...

Peru......

Denmark

699

Rumania

Egypt

170

Spain

Eritrea...

Switzerland

2452

East Africa..........

Sweden

1523

France...

2649

South Africa

251

Formosa

433

Syria

Finland

South America

French-Indo-China.

187

Sudan

Germany

12016

Saudi Arabia

Greece

Thailand....

1109

Holland

4287

Turkey.....

Hungary

117

U.S. S. R.

Italy

2612

U. S. A.

5599

India

675

United Kingdom

16436

Indonesia..

189

Uruguay

Iceland

Venezuela

Iraq

West Indies

Iran

Yugoslavia

Israel

TOTAL:- 92,673

APPENDIX VIII

Export Licences Issued for the year ending 31st December, 1953

E/L Green Form No. 5

E/L Yellow From No. 4

Month

Exports

Total

Restricted Exports

Exports to Japan

of Gold, Prohibited Restricted General Silver & Exports Exports Exports Diamond

Exports of

Foodstuffs

Figures for 1952 Quoted for Comparison

January

.1953

7,405

790

1,288

359

1,737

435

12,070

9,283

February

1953

6,408

759

183

892

1,892

277

10,456

10,294

March

1953 9,554

821

238

1,141

2,561

349

14,729

11,695

April

.1953

9,413

843

183

980

2,106

359

13,948

11,824

May

.1953

10,708

763

189

728

2,162

305

14,913

13,186

June

1953 10,086

748

160

618

2,057

305

14,038

11,544

July.

1953

9,622

815

192

754

2,293

367

14,106

14,477

August.....

.1953!

7,818

751

169

594

2,089

345

11,823

13,895

September

1953

8,881

843

227

647

2,394

393

13,465

14,901

October

November

1953 10,053

978

232

699

2,339

490

14,878

14,642

1953 8,778

912

106

232

603

2,372

541

13,544

15,585

December

......1953 9,009

883

143

212

672

2,476

587

13,982

16,717

Total...... 107,735

9,906

888

3,505

8,687

26,478

4,753

161,952

Monthly Average 13,496

13,170

APPDENDIX IX

Comparative Table showing the Number of Essential Supplies Certificates Issued during the Years 1951 to 1953.

Supplying Country

Number of Certificates Issued in 1951

Number of Certificates Issued in 1952

Number of Certificates Issued in 1953

Algeria

Australia

Austria

165

274

284

Belgium

301

195

382

Bahrein.

Brazil

Brunei

Burma

Canada

346

191

265

Ceylon

Colombo

Curacao

Cyprus...

Czechoslovakia

Denmark

Dutch East Indies.

Finland..

France

238

113

233

French Indo China

Germany

455

519

1126

Holland

169

166

142

Hong Kong

179

India.....

Indonesia

Ireland

Italy Japan

Luxemburg

Macau Mexico

New Zealand

B. N. Borneo

Norway.

Philippines Poland

Portugal

Ryuku Island. Sarawak

Singapore.

S. Africa

Spain..... Sweden..

Switzerland

4316

2373

1703

128

443

385

601

110

114

Taiwan

Thailand

Timor

U. K.

4858

5747

8048

U. S. A.

2639

1484

2004

Total:

14323

11882

15717

APPENDIX X

Comparative Table of Numbers of Manifests Received during the Years 1952 and 1953

Oeean

River

Junk

Total

Month

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

April

443

579

345

192

1,497

1,789

2,285

2,560

May

508

591

230

245

1,673

1,786

2,411

2,622

June

489

563

317

272

1,409

1,976

2,215

2,811

July...

456

590

380

226

1,786

2,046

2,622

2,862

August...

487

591

303

198

2,009

1,947

2,799

2,736

September

530

588

294

191

2,191

1,788

3,015

2,567

October

497

625

410

215

2,077

2,154

2,984

2,994

November

499

604

239

197

2,217

1,756

2,955

2,557

December

585

593

322

220

2,430

1,703

3,337

2,516

Total

5,794

6,981

3,783

2,565

22,770

23,425

32,347

32,971

Average per Month...

483

582

315

214

1,898

1,952

2,696

2,748

APPEND XI

Comparative Table of Numbers of Declarations Received

during the Years 1952 and 1953

Month

1952

1953

January

43,017

56,954

February

44,598

43,832

March

45,149

56,194

April

42,512

51,646

May

47,372

51,559

June...

41,175

54,665

July

50,485

55,412

August.....

46,423

46,548

September

53,395

53,879

October

51,026

54,281

November

52,556

50,310

December

58,602

51,794

Total

Average per month

576,310

627,074

48,026

52,256

MARINE DEPAR ́M NT „BRARY

APPENDIX XII

Locally manufactured, processed or produced commodities exported under Imperial Preference Certificates, Certificates of Origin and Comprehensive Certificates of Origin from 1st April, 1953, to 31st March, 1954.

Artware

Aluminiumware

Abaci

Beverages

Batteries, torch

Bean products

Bulbs, torch

Buttons

Bambooware

Commodity

Bricks & tiles

Books & printed matter...

Brass trays....

Cotton waste

Camphorwood chests & furniture Camphorwood powder & tablets Canned foodstuff's Candles & joss sticks Chinaware

Cotton yarn

Cotton piece goods Cosmetics & perfumery

Confectionery

Cutlery

Canvas products

Cordials

Cork pictures.

Cane webbing.

Dyestuffs.....

Dried oysters.........

Enamelware

Electrical appliances........

Embroidery

Embroidered shoes

Eggs, salted & preserved

Firecrackers

Fans

Fish & fish products

Quantity

Value in H.K.S

Various

6,666

286,243

300 pcs.

2,700

Various

6,687

1,494,908

2,743,131

1,347,054

1,328,548

166,182

6,975 282,247

2,218

1,308,001

ས་

489,941 972,822 1,258,615 385,204 99,688 22,890,443

38,909,047

963,602

190,457

139,188

5,271

205 gal

1,950

Various

12,930

22,703

4,360

642,069

28,545,125

1,069,458

5,803,193

212,184 prs.

720,774

5,300 pcs. Various

1,695

704,664

54,399

1,313,005

APPENDIX XII—Continued

Commodity

Flashlights

Quantity

Various

Value in H.K.S

Fibre suit cases..

Feathers

18,937,512 571,061

3,624

Firecracker punk

42,681

Ginger, preserved

316,811

Glassware

1,000,364

Goods manufactured locally by refugees

4,466 units

4,135

Handkerchiefs

Various

1,758,788

Hardware

Hats & caps

Hardwood furniture

5,108,291

3,116,907

3,843,977

Iron pictures

Ivoryware

15,269

1,574,082

Jewellery..

Jade.....

Knitwear..

Lamps, kerosene

Leather shoes....

Leatherware

Lanterns, pressure.

Lanterns, hurricane

3,024

89,535

37,108,232

481,857 8,526,221

558,602 1,313,468

656,346

Matches

Mosquito destroyers

Mosquito nets

Musical instruments

491,632

179,159

181,385

4,614

Motion pictures

Meat, preserved..

144 copies Various

757,200

76,234

Medicine raw

30,110

Medicine, proprietary

2,912,378

Monosodium glutamate..

5,703 doz.

220,759

Needles

Various

548,892

Neckties & scarves

2,122,434

Needlepoint tapestry.

368,133

Oyster sauce

146,906 lbs.

1,108,337

Paint, varnish & lacquer.

Various

4,169,292

Paperware

108,543

Pencils.....

32,483

Plasticware

2,285,982

Printed piece goods

2,081,500

Plums, preserved

870,077 lbs.

2,376,479

50APPENDIX XII- Continued

Commodity

Quantity

Value in H.K.$

Pewterware...

Various

4,468

Porcelain, plain

24,685

Preserved ducks

36,843 ctts.

646,288

Rattanware..

Various

9,851,154

Ropes & twines.....

•

123,725

Rubber shoes..

19,504,530

Rubberware

าง

204,374

Rice sticks

59,740 lbs.

102,699

Rice powder

206,840 lbs.

285,507

Religious vestments

Various

50,988

Seagrassware

835,064

Shirts & garments

Socks

Soy & sauce

多婆

49,075,498

5,503,095 660,199

570,455

Sugar

Silk piece goods

2,591,941

Soap...

27,574

Shrimp sauce....

85,268 lbs.

191,382

Shrimp slices & noodles

44,888 lbs.

147,266

Salted turnips

141,400 lbs.

237,094

Salted fish

70,621 lbs.

235,695

Threads

Tea

Toys

Towels.....

Tooth brushes

Tobacco & cigarettes

Umbrellas

Vacuum flasks

Vegetables & fruit, fresh..

Various

1,154,171

273,277

3,713,848

1,708,144

194 doz.

1,014

Various

580,468

3,065,606

887,384

•

Vegetables & fruit, preserved.

Watch bands

Woodware

33,108

41,693

5,221,454

324,412

Wolfram ore

Water chestnuts

Miscellaneous

1,330,526

1,114,322 lbs.

1,589,947

Various

3,314,963

333,798,408

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

30,593

48,357

Total number of Comprehensive Certificates of Origin:-

6,073

Duties:-

APPENDIX XIII

Revenue for the period from 1st April, 1953 to 31st March, 1954.

Gross

Net

Liquor

18,478,913.45 18,335,617.13

Hydrocarbon oils.....

16,856,337.28

16,742,842.71

Proprietary medicines and toilet preparations

3,366,040.51

3,360,142.44

Table water.

1,691,103.50

1,691,040.44

Tobacco........

38,403,482.43

34,753,820.61

Licences, fines and forfeitures:

Liquor licences

909,139.21

908,787.36

Hydrocarbon oils....

24,223.90

24,221.50

Proprietary medicines and toilet preparations

131,714.24

131,561.21

Miscellaneous (table water) licences

7,209.39

7,203.79

Tobacco licences

397,559.84

397,444.55

Tally clerk licences (to 31.12.,53). Forfeitures

1,165.00

5,814,307.13

Fees of court or office:

Denaturing fees

168,591.53

Official certificates

642,700.00

Anti-narcotic smuggling guards

16,200.00

Bonded warehouse supervision.......

45,620.00

Expenditure of Supplies division......

626,669.00

626,669.40

Internal revenue:

Business registration tax

Stamp duties

3,583,659.00

3,582,549.00

607,267.00

Miscellaneous receipts:

Other miscellaneous receipts.

51,129.69

50,971.69

91,823,032.50 87,908,722.49

APPENDIX XIV

Details of duty from European-type liquor

Type of liquor

Gallons

Duty collected $

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

848,906

1,617,708.60

(Empire origin)

247,510

403,851.19

Beer (Local origin)..

863,982

863,981.75

Brandy (Non-empire origin)

48,534

2,669,439.32

(Empire origin)..

3,609

169,645.68

Whisky (Non-empire origin)

1,041

54,475.26

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

62,407

2,746,291.45

Gin and cocktail (Non-empire origin)

1,019

52,972.88

(Empire origin)

26,270

1,200,538.94

Rum (Non-empire origin)

288

15,023.23

(Empire origin).

1,833

80,633.85

(Local origin)

2,777

122,202.68

Liqueur (Non-empire origin).

3,433

188,825.52

(Empire origin)

637

29,926.43

Champagne and sparkling wine (Non-empire origin).

3,232

142,218.04

(Empire origin)

264.02

Port (Non-empire origin)

8,376

209,399.54

(Empire origin)

7,739

154,785.88

Sherry, madeira and malaga (Non-empire origin)

6,696

167,410.73

(Empire origin).

171

3,420.04

Vermouth (Non-empire origin)

2,524

50,478.08

(Empire origin)....

Miscellaneous (Non-empire origin)

(Empire origin)

Spirit of wine (Non-empire origin)

32.00

15,292

307,256.83

2,121

57,583.87

3,014

68,719.20

(Empire origin)

(Local origin)

Spirituous liquors

1,996

37,182.28

1,397

25,712.00

41,849

290,823.52

Totals.....

2,206,662

11,730,802.81

Note:-Fractions of a gallon are not shown

APPENDIX XV

Details of duty from Chinese-type liquor

Liquor

distilled

Amount of

Total amount

Imported

Amount of

locally

duty collected

liquor

duty collected

of duty collected

gallons

Native spirits not more than 25% of

alcohol by weight

1,114,338

5,571,690.00

22,822

136,932.34

5,708,622.34

Native spirits over 25% of alcohol by

weight

81,248

623,120.80

1,182

7,807.19

630,927.99

Northern spirits over 25% of alcohol

by weight

Northern spirits not more than 25%

of alcohol by weight.

Sake........

26,257

294,159.85

17,776

106,657.39

143

858.86

Note: - Fractions of a gallon are not shown

Total............ 6,741,226.43

Duty on European liquor

Duty on spirituous liquor

Duty on Chinese liquor

Total:-

APPENDIX XVI

Details of duties from liquor

Add departmental transfer

11,308,365.81

422,437.00

6,741,226.43

18,472,029.24

6,884.21

Total:-

18,478,913.85

Subtract refund of liquor duties

143,123.49

18,335,789.96

Subtract transfers........

172.83

Net total:-

18,335,617.13

APPENDIX XVII

Details of duty from tobacco

Duty from :-

lbs

Cigars

17,631

123,296.34

Cigarettes

2,963,357

16,987,499.21

European smoking tobacco

65,840

274,502.72

Chinese prepared tobacco

10,993

32,979.00

Clean tobacco leaf....

132,132

490,390.90

Raw tobacco leaf (Empire origin)..

Raw tobacco leaf (Non-empire origin)

Snuff

1,586,120 5,630,726.00

3,960,796

14,852,985.00

689

Total

Add departmental transfer

Grand total

Subtract drawback

Net total

3,307.20

38,395,686.37

7,796.06

38,403,482.43

3,649,661.82

34,753,820.61

Duty from:

Light oils

Diesel oils for Vehicles

Diesel oils

Furnace oils

Other heavy oils

Admixtures....

Total

Subtract drawback

Net total

APPENDIX XVIII

Details of duty from hydrocarbon oils

Imperial

Gallons

Tons

10,774,341

7,192

8,619,472.80

747,968.00

24,254

630,604.00

239,428

5,746,272.00

9,930,617

993,061.70

320,982

118,958.78

16,856,337.28

113,494.57

16,742,842.71

APPENDIX XIX

Details of duty from toilet preparations and proprietary medicines

Duty on toilet preparations and proprietary medicines Add departmental transfer....

Total:

Subtract refund

Subtract transfer

Net total:-

Duty on table water

Add departmental transfer

Total

Subtract refund...

Net total......

APPENDIX XX

Details of duty from table water

Gallons

3,523,121

3,363,454.63

2,585.88

3,366,040.51

5,758.59

3,360,281.92 139.48

3,360,142.44

1,691,098.15

5.35

1,691,103.50

63.06

1,691,040.44

APPENDIX XXI

Details of liquor licences issued for the period from 1st April,

1953 to 31st March, 1954.

General bonded warehouse licences:-

$1.

6.00

(b)

$1.

$150.

Licensed warehouse licences :--

$600.

Distillery licences:-

(a) Single still.....

Two stills

Brewery licence :-

$600.

Canteen licences :-

Importer's licences :—

Dealer's licences:-

3,000.00

$ 25.

325.00

$200.

1,200.00

600.00

3.00

611

91,650.00

(a) for European-type liquor:-

$1,500.

218

327,000.00

(b)

for Chinese-type liquor:--

1. $650.

450

292,500.00

2. $550.

134

73,700.00

3. $400.

1,600.00

4. $ 50.

140

7,000.00

(c)

for liquor other than intoxicating liquor :-

$ 30.

619

18,570.00

Retailer's licences:-

(a) for Chinese-type liquor:-

1. $150.

2. $ 25.

ལུཁ

7,800.00 350.00

(b) for liquor other than intoxicating liquor:—

1. $ 50.

943

47,150.00

2. $ 30.

832

24,960.00

3. $ 20.

255

5,100.00

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

charitable institution:-

$1.

2.00

Harbour vessel licences:--

$1.00

Ship licences:-

$10.00......

Miscellaneous

9.00

90.00

6,172.36

Total....

908,787.36

APPENDIX XXII

Details of tobacco licences issued for the period from 1st April, 1953 to 31st March, 1954.

Licensed warehouse licences:

(a) $600.00

3,000.00

(b) $300.00

300.00

Manufacturer's licences:

(a) $300.00

900.00

(b) $150.00

300.00

Travelling saleman's licences:

$ 10.00

231

2,310.00

Importer's licences:

$150.00

Dealer's licences:

$300.00

Retailer's licences:

(a) $ 60.00

(b) $40.00

126

18,900.00

291

87,300.00

2,409

144,540.00

2,851

114,040.00

Hawker's licences:

$ 8.00

935

18,700.00

600.00

Miscellaneous

6,554.55

Total

397,444.55

APPENDIX XXIII

Details of hydrocarbon oils licences issued for the period from 1st April, 1953 to 31st March, 1954.

Licensed warehouse licences: -

$350.00

Importer's licences: —

$150.00

Dealer's licences:

$ 10.00

Retailer's licences:

$ 10.00

Miscellaneous

Total

4,200.00

101

15,150.00

103

1,030.00

810.00

3,031.50

24,221.50

APPENDIX XXIV

Details of toilet preparations and proprietary medicines licences issued for the period from 1st April, 1953 to 31st March, 1954.

Manufacturer's licences: -

$150.00

Warehouse licences:

$ 10.00

Importer's licences : —

(a) $150.00

(b) $ 20.00

Dealer's licences: ---

$ 10.00

Retailer's licences :

(a) $ 60.00

(b) $ 40.00 (c) $ 30.00

(d) $ 20.00

(e) $ 10.00

Miscellaneous

Total

260

39,000.00

289

2,890.00

14,700.00

478

9,560.00

741

7,410.00

5,520.00

720.00

897

26,910.00

776

15,520.00

255

2,550.00

6,781.21

131,561.21

APPENDIX XXV

Details of table waters licences issued for the period from 1st April, 1953 to 31st March, 1954.

Licensed warehouse licences: -

$10.00....

Manufacturer's licences: -

(a) $300.00

(b) $ 75.00

Importer's licences:

$100.00

Miscellaneous

Total

140.00

3,900.00

1,275.00

1,500.00

388.79

7,203.79

APPENDIX XXVI

Details of tallyclerk licences issued for the period from

1st April, 1953 to 31st December, 1953.

Tallyclerk's licences: —

$5.00

APPENDIX XXVII

Details of arrests and seizures

233

1,165.00

Estreat-

Seizures

Convic-

Arrests

ments of

without

tions

bail

arrest

DANGEROUS DRUGS

opium (possession and/or importing)

opium dross (possession)

opium pipes (possession)

morphine

TOBACCO

cigarettes (possession).

tobacco (possession)

tobacco (importing).

tobacco (unlicensed selling)

ཁྐྲg ས

110

106

LIQUOR

duty-paid labels (possession)..

European-type liquor (possession)

Chinese-type spirit (possession).

stills (unlicensed)........

242

distilling (unlicensed)

selling (unlicensed)

fermenting material

TABLE WATERS (possession)..

PROPRIETARY MEDICINES AND

TOILET PREPARATIONS

possession.

unlicensed selling...

unlicensed manufacturing

importing

failure to keep books.....

APPENDIX XXVII-Continued

UNMANIFESTED CARGO

importing

exporting

PROHIBITED EXPORTS

Convic-

Arrests

tions

Estreat- ments of bail

Seizures without

arrest

(including specified articles) importing

exporting

GOLD

importing

exporting

102

IMPORT CONTROL

คง

EXPORT CONTROL....

Miscellaneous summary cases

APPENDIX XXVIII

Details of major seizures of dangerous drugs

Place of seizures

Date

Type of drug

Tacls

Destination indicated by circumstances

of seizure

s. 8. "Tai Loy"

I. 4. 53.

Prepared

Hong Kong.

opium

s. s. "Carthage'

s. s. "Bahadur"

30. 6. 53. 29.

Raw opium

185

Hong Kong.

7. 53.

s. s. "Taksang"

21. 9. 53.

Raw opium Raw opium

1,465

Hong Kong.

8/3/1

Hong Kong.

91, Connaught Road, West,

2nd floor

17. 11. 53.

Raw opium

Hong Kong.

Cathay Pacific Airways

Aircraft VR-HEU

26. 1. 54.

Morphine, crude. Morphine, Hydrochlo- ride, crude.

4 lbs.

91 oz.

Hong Kong.

3 lbs.

101 oz.

Hong Kong.

Abrasives

Acetic acid....

APPENDIX XXIX

Details of main seizures of specified articles

4 tons approximately

tons

Acrylic sheets....

Aluminium ingots

Asphalt

750 lbs.

4 tons

821 tons

Brass, sheets

tons

Carbon black

671 tons

Chemicals

tons

Cobalt.

tons

Compasses

150 lbs.

Copper Sheets

3 tons

Copper wire

10 tons

Cotton

Cresylic acid

Electric testers

Hoop Steel...

Iron drums...

4 tons

182 tons

1 ton

25 tons

51 tons

133

tons

Iron plate cuttings

Iron sheets, black

50 tons

Iron sheets, galvanized

tons

Jade....

10 lbs.

Lead

111⁄2 tons

Pipes, iron

11⁄2 tons

Pipes, iron galvanized

382 tons

Rubber

Rubber accelerator

Rubber tubes

Rubber tyres new

Rubber tyres old

Steel, plate

Steel, wire

Tin plate...

Valves, wireless

Watches

75 tons

37 1/7 tons

21 tons

19 tons

9 tons

41 tons

非

11⁄2 tons 241⁄2 tons 745 lbs.

206 lbs.

9 tons

Welding rods

Motor parts (various)

Motor trucks

10 tons

APPENDIX XXX

Details of seizures of dutiable commodities

Chinese prepared tobacco

14,900 lbs.

Cigarettes (various brands)

12,381 lbs.

Cigars

lbs.

European-type liquor

Chinese-type liquors

90 gallons.

2,873 gallons.

Miscellaneous toilet preparations

16,249 packets.

Chinese medicines

25,602 packets.

Foreign medicines

Illicit stills

Fermenting materials

Petroleum jelly

Paraffin wax

Vaseline

APPENDIX XXXI

Details of seizures of petroleum products

1,059 packets.

242

5,393

gallons.

lbs.

100

lbs.

240

lbs.

APPENDIX XXXII

MARINE DEPARTMENT LIBRARY

HONG KONG GOVERNMENT

COMMERCE AND INDUSTRY DEPARTMENT

(SUPPLIES DIVISION)

SUMMARIZED ACCOUNTS

for the year ended 31st March, 1954

and

Auditors' Report thereon

HONG KONG — AUGUST, 1954

CONTENTS

Auditors' Report

Summarized Accounts, as under:

Deficit Account

Consolidated Balance Sheet

Food Section:

Schedule

No.

General Profit & Loss Account

Trading and Profit & Loss Accounts-

Rice

IIA

Sugar

IIB

Frozen Beef

IIC

Other Foodstuffs

IID

IIE

Chatham Road Godowns Operating Account.

Fuel Section:

General Profit & Loss Account

III

Trading and Profit & Loss Accounts-

Coal

IIIA

Firewood

IIIB

5 1

דון

* premiu

བཅན་

Hong Kong, 31st August, 1954.

The Director,

Sir,

The Department of Commerce and Industry,

Hong Kong.

DEPARTMENT OF COMMERCE AND INDUSTRY SUPPLIES DIVISION ACCOUNTS

We have completed our examination of the accounting records maintained by the Supplies Division of your Depart- ment for the year ended 31st March, 1954, 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 ac- cepted 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 maintain- ing Government's reserve stocks of certain essential foodstuffs and fuel. Certain recurrent items of expenditure shown 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

Stocks as at 31st March, 1954, have been valued in the main at substantially less than cost. It will be appreciated that losses arising from such reductions in value are in proportion to the magnitude of reserve stocks carried at 31st March, 1954.

2. The Accounts as presented make no specific provisions for anticipated Storage Losses on closing stocks as at 31st March, 1954. Our further comments in this respect are included under "Stocks on Hand" later in this report.

General Profit and Loss Account-Food

Flour Import Levy-Cr. HK$371,340.50

It should be noted that, of this item, HK$346,495.50 was included under "Sundry Creditors & Deposits Received" in the Balance Sheet as at 31st March, 1953 and was commented upon on page 5 of our report of 13th October, 1953.

Trading and Profit and Loss Account-Other Foodstuffs

Sales and Purchases are both inflated by $279,545.94 representing the value of certain stock sold back to suppliers at cost and later repurchased at the same value.

JAPAN TRADE SECTION

No business was done in this Section during the year. The balance of the bank Import Margin No. 2 Account ($8,585.08), for which there were no claimants, was transferred to Miscellaneous Revenue.

SURPLUS ACCOUNT

The balance at credit of this Account as at 31st March, 1953, HK$3,523,253.03, 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.

LIABILITIES

BALANCE SHEET

Treasury Suspense Accounts—HK$87,889,684.35

The Accountant General has confirmed these balances

as at 31st March, 1954.

•

Sundry Creditors and Deposits Received-HK$650,473.03

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, 1954.

Share of Votehead Expenditure—HK$718,669.11

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.

Reserve for Depreciation of Godowns-HK$788,113.03

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 food Trading Accounts 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

Sundry Debtors and Debit Balances—HK$2,627,069.24

The major portion of the above item has been collected or settled since 31st March. The main item other than Sundry Debtors was $860,152.99 in respect of Goods in Transit, since arrived.

Stocks on Hand-Dr. HK$73,644,182.72

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, 1954, with

Stock Lists supported by certificates from Public Godown Companies 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 & Clarke, Surveyors, on the results of physical tests, as at 31st March, 1954, made upon independently selected storage lots in public and Government godowns and in fuel yards operated on behalf of Government.

Food Section

Rice-Dr. HK$65,035,157.84

Stocks have been valued at the lower of Landed Cost or Net Proceeds to the Division, based on Selling Prices estimated at time of valuation as likely to be in force as at 30th June, 1954.

Storage Losses have been brought to account only when determined by clearance of individual storage lots during the year and these amount to 0.92% of the total quantity sold. No specific provision has been made for deterioration in quality or for anticipated storage losses which may be expected to occur, or have since occurred, in stocks held as at 31st March, 1954.

Whilst we are informed that a substantial quantity of the rice stocks held as at 31st March, 1954, 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 estimated net proceeds. We would, however, point out that selling prices are those set by the Division which prices are not necessarily realistic in view of the small demand for these varieties. No account has been taken of any position which may arise from Government's decision to discontinue Rice Rationing as from 1st August, 1954.

Frozen Meat-Dr. HK$2,927,571.73

Stocks have been valued at the lower of cost prices or current market values as at 31st March, 1954. It is noted that the market values are determined by the Division.

Stocks found to be unfit for human consumption during the year, as revealed upon issue, have been written off in the amount of HK$12,968.99, after deduction of claims made on suppliers. 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, 1954.

Other Foodstuffs—Dr. HK$3,131,457.19

At the beginning of the year these consisted of stocks of four different items of food held as reserve stocks. Stock movements during the year under review represent the complete disposal of one commodity, the building up of certain stocks, or the replacement 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 one commodity, at replacement values less depreciation for age for the second commodity, and at cost less 25% in the case of the third commodity which represented approximately 27% by value of stocks under this heading as at 31st March, 1954. the absence of a demand for the third commodity, we are unable to express an opinion on the value at which it is included in these Accounts. It is appreciated that these three commodities do not form part of the normal trading activities of the Division.

Fuel Section-Dr. HK$2,549,995.96

Coal and Coke-Dr. HK$402,209.08

Stocks have been valued at the lower of cost prices or current market values as at 31st March, 1954.

Firewood-Dr. HK$2,147,786.88

Stocks have been valued at the lower of cost prices or estimated current market values at 31st March, 1954 based on landed weights. We would emphasize that no allowance for loss in weight or for deterioration in quality during storage has been made.

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 value to the Division of this stock item.

Fixed Assets

During the year the Division acquired additional Fixed Assets; the cost thereof was written off to Revenue, as follows:-

$ 9,258.26 Other Foodstuffs Purchases

$51,574.98 Coal Rent and Rates

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, 1954, 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.

Hong Kong Government

Commerce and Industry Department (Supplies Division)

Deficit Account as at 31st March, 1954

NET LOSS, transferred from Food

Section General Profit

and Loss Account

NET LOSS, transferred from Fuel Section General Profit and Loss Account

LIABILITIES

TREASURY SUSPENSE ACCOUNTS

Overdrawn Balances :

Food

Fuel

Rice Storage

SUNDRY CREDITORS AND

DEPOSITS RECEIVED

SHARE OF VOTEHEAD

EXPENDITURE 1953/54

Amount to be refunded to General

Revenue during 1954/55

RESERVE FOR DEPRECIATION

OF GODOWNS

SCHEDULE I

HK$

DEFICIT, for the year ended 31st March, 1954

12,910,329.88

12,827,552.84

82,777.04

HK$12,910,329.88

Consolidated Balance Sheet as at 31st March, 1954

HK$12,910,329.88

ASSETS AND DEFICIT

$ 2,627,069.24

$85,248,559.53 2,574,757.28 66,367.54

87,889,684.35

SUNDRY DEBTORS AND DEBIT

BALANCES

STOCKS ON HAND

As certified by Departmental

Officials:

Food Section

650,473.03

Fuel Section

718,669,11

788,113.03

HK$90,046,939.52

EQUIPMENT at cost

Fuel Section..............

GODOWNS, CHATHAM ROAD

at cost

DEFICIT, per statement

$71,094,186.76 2,549,995.96

73,644,182.72

480.00

864,877.68

12,910,329.88

HK$90,046,939.52

Commerce and Industry Department (Supplies Division) - Hong Kong

SCHEDULE II

Food Section

General Profit and Loss Accounts for the Year ended 31st March, 1954

HK$

Balances, transferred from trading

and Profit and Loss Accounts:

Loss on RICE

Flour Import Levy

371,340.50

Miscellaneous Revenue

8,187,58

$10,849,587.35

Balance, being NET LOSS for the

OTHER FOODSTUFFS...

1,479,603.94

$12,329,191.29

year

12,827,552.84

Profit on SUGAR

$2,829,121.09

FROZEN

MEAT

817,613.95

3,646,735.04

8,682,456.25

Share of Votehead Expenditure

Interest at 3% p.a. on Treasury

Advances

551,601.59

3,973,023.08

HK$13,207,080.92

Food Section

Rice

Trading and Profit and Loss Accounts for the Year ended 31st March, 1954

SCHEDULE II A

HK$

Stocks at 1st April 1953.......

75,483,573.80 Sales:

Ration

Purchases

$95,809,418.15

$78,133,421.03

Less: Recoveries and Claims

655,439.34

95,153,978.81

Direct Supply

28,511,120.51 106,644,541.54

Less: Commission

Direct Expenses :

Transportation

$ 3,035,546.02

607,830.11

3,643,376.13

103,001,165.41

Freight

$ 4,127,713.07

Marine Insurance....

Landing and Weighing

411,396.16

851,291.51

Agency Commission

298,409.86

5,688,810.60

Proceeds of Sale of Gunnies

Stocks at 31st March, 1954

Balance, being Gross Loss carried down

1,324,539,66

65,035,157.84

6,965,500.30

HK$176,326,363,21

HK$176,326,363.21

Balance, Gross Loss brought down

Incidental Expenses :

$ 6,965,500.30

Balances, transferred to Food Section General Profit and Loss Account ...

$10,849,587.35

Storage

$ 2,679,566.83

Weighing Out and Handling

Charges

Fire Insurance....

Rented Godown Expenses

Cost of Issuing Ration Cards..........

643,578.87

317,876.23

3,641,021.93

53,189.12

189,876-00

HK$10,849,587.35

Stocks at 1st April, 1953...

Purchases

Less: Claims..........

Direct Expenses:

Freight

Marine Insurance

Landing and Weighing

Food Section

Sugar

Trading and Profit and Loss Accounts for the Year ended 31st March, 1954

Balance, being Gross Profit carried

down

Incidental Expenses :

SCHEDULE II B

HK$

3,713,919.27

Sales:

$ 16,867,074.17

16,761.32

16,850,312.85

Ration....

Direct Supply

$1,747,463.65

22,396,472.68 24,143,936.33

Less: Commission

312,419.13

21,602.72

66,634.44

Transportation

$ 139,432.47

14,464.41

153,896.88

23,990,039.45

Proceeds of Sales of Gunnies

14,498.00

400,656.29

3,039,649.04

HK$ 24,004,537.45

Storage

147,682.23

Weighing Out and Handling

Charges

59 418.62

3,427.10

210,527.95

Fire Insurance..

Balance, transferred to Food Section

General Profit and Loss Account...

2,829,121.09

HK$ 3,039,649.04

Balance, Gross Profit brought down

HK$ 24,004,537.45

3,039,649.04

HK$ 3,039,649.04

Food Section

Frozen Meat

Trading and Profit and Loss Accounts for the Year ended 31st March, 1954

Stocks at 1st April, 1953......

Purchases

Less: Claims

Direct Expenses-

Marine Insurance

Balance, being Gross Profit carried

down

HK $

9,248,515.70 Sales-

$ 4,987,036.28

2,935.73

4,984,100.55

Local Consumption Ships' Stores

Stocks at 31st March, 1954

16,909.47

1,421,660.26

Incidental Expenses-

Storage

Local Insurance

Condemned Stock written off....

Balance, transferred to Food Sec- tion General Profit and Loss Account

HK$ 15,671,185.98

SCHEDULE II €

HK $

$ 11,534,335.52

1,209,278.73

12,743,614.25

2,927,571.73

HK$ 15,671,185.98

586.204.18

Balance, Gross Profit brought

down

4,873.14

12,968.99

$ 1,421,660.26

604,046.31

817,613.95

HK$ 1,421,660.26

Stocks at 1st April, 1953..

Purchases

Less: Claims.

Direct Expenses :

Marine Insurance

Landing and Weighing

Food Section Other Foodstuffs

Trading and Profit and Loss Accounts for the Year ended 31st March, 1954

SCHEDULE II D

HK$

9,397,007.77 Sales

HK$ 6,115,069.38

1,989.88

HK$ 10,386,811.36

988,261.79 448.08

987,813.71

1.382.46 607.42

Stocks at 31st March, 1954......

Balance, being Gross Loss carried

down

3,131,457.19

1,140,284.79

HK$ 10,386,811.36

$ 1,140,284.79

325,688.92

Balance, transferred to Food Section General Profit and Loss Account...

1,479,603.94

11,301.08 2,329.15

339,319.15

Balance, Gross Loss brought down

Incidental Expenses :

Weighing Out and Handling

Storage

Charges.

Fire Insurance.

HK$ 1,479.603.94

Food Section

Chatham Road Godown Operating Account for the Year ended 31st March, 1954

Management, Operation and

Maintenance Expenses

Balance, being operating Profit

carried to Reserve for

Depreciation of Godowns.

HK$

153,765.03 Storage Charges

227,396.07

HK$

381,161.10

HK$

1,479,603.94

SCHEDULE II E

HK$

381,161.10

HK$

381,161.10

Commerce and Industry Department (Supplies Division) - Hong Kong

Fuel Section

General Profit and Loss Accounts for the Year ended 31st March, 1954

SCHEDULE III

Share of Vote Head Expenditure ...

Interest at 31% p.a. on Treasury

Advances

HK$

167,067,52

Balances, transferred from Trading and Profit and Loss Accounts:

Profit on COAL

$ 1,369,252.98

172,109.94

Loss on FIREWOOD

1,113,250.06

256,002,92

HK$ 339,177.46

Miscellaneous-Revenue

Balance, being Net Loss for the year

397.50

82,777.04

HK$

339.177.46

Fuel Section

Coal

Trading and Profit and Loss Account for the Year ended 31st March, 1954

SCHEDULE III A

HK$

5,192,445.71 ! Sales

$13,156,573.09

Less: Commissiom on Coal Sales...

2,137.00

13,154,436.09

$ 5,952,211.16

97,190,89

5,855,020.27

Stocks at 31st March, 1954............

402,209.08

599,837.57

41,236.50

Stocks at 1st April, 1953......

Purchases

Less: Despatch Money

Stevedorage and Delivery Charges...

Brokerage and Commission............

Storage and Incidental Expenses :

Rents and Rates......

478,943.85

Electricity and Water Charges

Repairs and Maintenance......

11,452.98

6,083.76

496,480.59

Survey Fees......

473.34

Fire Insurance.

Balance, transferred to Fuel Section General Profit and Loss Account...

1,898,21

1,369,252,98

HK$ 13,556,645.17

Fuel Section

Firewood

Trading and Profit and Loss Account for the Year ended 31st March, 1954

Stocks at 1st April, 1953

Stevedorage and Delivery Charges

Survey Fees

Fire Insurance

SCHEDULE III B

HK $

3,601,118.74 Sales......

363,653.72

12,701.63

Less Commission on Firewood

Sales......

1,864.90

Stocks at 31st March, 1954

1.955.00

361,698.72

2,147,786.88

7,050.39

Balance, transferred to Fuel Sec-

HK$ 3,622,735.66

tion General Profit and Loss

Account

1,113.250.06

HK$ 3,622,735.66

APPENDIX XXXIII

IMPERIAL PREFERENCE

Importation of Hong Kong Products into the United Kingdom.

Copies of H.M. Customs and Excise Notice No. 27A, "Imperial Preference," may be obtained free of charge on request to the Trade Development Division, Department of Commerce and Industry. Copies of this Notice and of the "Customs and Excise Tariff of the United Kingdom of Great Britain and Northern Ireland in operation on the 1st November, 1953," No. 34 (Sale), price four shillings net, are also available from any branch of H.M. Stationery Office. A copy of the Customs Tariff is available for reference in the Trade Develop- ment Division, Department of Commerce and Industry. All Hong Kong manufacturers and exporters should have copies of Notice No. 27A and the Customs Tariff. H.M. Customs and Excise Notice No. 27A begins as follows:

"Title to Preference-Certain goods are charged on Importation into the United Kingdom with Customs duty at reduced rates or admitted free of duty, provided that the goods are shown to the satisfaction of the Commissioners of Customs and Excise to have been (i) consigned from the British Common- wealth and Empire, and (ii) grown, produced or manufactured in the British Commonwealth and Empire. The preferential rates are shown in the Customs and Excise Tariff."

Manufactured articles must show that 25%, 50%, or 75% (according to category) of their cost has been derived from "Prescribed expenditure incurred within the Empire." Most Hong Kong products fall within the first two categories and here are some of them:

25%

All kinds of textiles and garments, etc., and

Umbrellas (unless regarded as "toy umbrellas", where-

upon they fall into the 50% category)

Lead pencils

Gloves (woollen or cotton)

Hats

Seagrass Products

Furniture (wooden)

Watch cases

Soap (household)

Note:-(any goods which contain rubber in any form, e.g., elastic require 50% Empire Content, see first item below)

50%

All rubber products or products containing rubber in

any form (e.g., elastic), and

Boots, shoes, sandals, etc., and laces

Brooms and brushes

Buttons

Clocks

Cutlery

Electrical goods (including torches)

Fireworks

Furniture (metal)

Glassware

Hollow-ware

Hurricane lanterns

Locks, padlocks, keys, bolts, etc.

Machinery

Musical instruments

Needles

Paint, distemper and some pigments

Pen nibs, fountain pens, propelling pencils, etc.

Pottery

Pressure lanterns

Screws

Soap (toilet)

Toilet preparations

Tools

Toys (all kinds)

Trunks, bags, wallets, etc., wholly or partly of leather

or materials resembling leather

Vacuum flasks

Generally goods in both categories are free of duty when admitted to Imperial Preference, but some goods (e.g., motor cars or goods containing silk and/or artificial silk) are liable to duty at reduced rates.

Some Commonwealth Territories will admit goods on a Certificate of Origin without a certain minimum Empire content being stated, but NOT the United Kingdom.

Broadly, a claim to relief from duty is made in the following

manner:

(1) The manufacturer requests an accountant, approved by the Hong Kong Government, to prepare costings according to the principles laid down in Notice 27A. The accountants concerned are familiar with the preparation of such costings.

(2) On completion, the accountant will send the costings to H.M. Customs and Excise in London for examination and approval. Before giving approval, H.M. Customs may address queries to the accountant. An acknowledg- ment reference number from H.M. Customs does not constitute approval.

(3) If approval is given, the accountant is notified and instructed about the endorsement which he must add to the Certificate of Origin.

(4) The Certificate of Origin, which must accompany every consignment, is the "Imperial Preference-Certificate of Origin E. Form No. 120 (Sale).”

(5) If the procedure outlined above has been completed successfully, and the goods have been consigned from Hong Kong direct to the United Kingdom, the consign- ment is admitted to Preference.

Many Hong Kong manufacturers have established arrange- ments with H.M. Customs whereby detailed costings are not required after the original submission. For example, all spinning companies have undertaken, under supervision by their accountants, to mix at least 25% by weight of Empire raw cotton when spinning yarn. Therefore, since cotton goods must have an "Empire Content" of at least 25% to qualify for preference, all their yarn qualifies without difficulty, so long as their mixing system remains unchanged. But the advantage does not end there. Any weaver or knitter who uses this local yarn or United Kingdom or Indian yarn (spun from Indian or Pakistan raw cotton) exclusively and undertakes formally to do so, also finds that his products do not need to be costed for preference purposes. He simply submits stock accounts and evidence at intervals, usually every six months. Similarly, costings are not normally required from manufacturers of made up cotton garments who use only materials woven in Hong Kong by approved weavers using only 25% "formula" yarn.

Most of the producers of woollen gloves provide an under- taking and subsequent stock statements which indicate that all the woollen yarn in the factory was spun in Hong Kong or in the United Kingdom wholly from wool tops made in the Empire or in the United Kingdom.

Importers experiencing difficulties in the United Kingdom should get in touch with the Hong Kong Government Office, Grand Buildings, Trafalgar Square, London, W.C.2., rather than H.M. Customs; and manufacturers and exporters in Hong Kong the accountant concerned, who will, if necessary, approach the Hong Kong Government Office in London or H.M. Customs direct.

Facilities, if required, for the Submission of Imperial Preference Certificates of Origin E. Form No. 120

(Sale) to Collectors of Customs and Excise in the United Kingdom.

With effect from 1st October, 1954, a new trial procedure for the submission of these Certificates directly to Collectors of Customs and Excise in London, Liverpool, and Glasgow, has been approved. Previously they were generally sent by the Hong Kong exporter to the United Kingdom importer concerned, and may continue to be so despatched unless the Hong Kong exporter wishes to keep the name of the manufacturer (which appears on the Form E. 120 (Sale)) from his oversea connexions.

Details of the procedure are as follows:

Exporters in Hong Kong should ensure, as far as possible, that (a) the Certificates of Origin contain the names and addresses of the importers concerned; (b) the Certificates are confined to single transactions involving prime importers at one port only; and (c) the description of the goods on the Certificates is full and accurate and includes the manufacturer's line or style numbers or designations, if any, in addition to the identifying particulars (marks, numbers, etc.,) of the packages. Each Certificate should be prominently marked "Confidential Information herein not to be divulged to Importers", and great care should be taken to address it to the proper Collector of Customs.

Certificates should be forwarded to the Collector concerned in duplicate. Both copies will be given an identifying number by the Collector on receipt, one being filed by him pending presentation of the related entries. The second copy will be prominently marked "DUPLICATE," date stamped, and for- warded to the Hong Kong Government Office in London immediately.

The Hong Kong Government Office will be responsible for passing on to the importers the Departmental identifying numbers, which must be quoted on entries when the latter are

presented to the Collector. The Hong Kong Government Office will also act as a clearing-house for queries and the original copy of any Certificates not in order will also be forwarded there by the Collector for clarification of doubtful points. If necessary the Hong Kong Government Office in London will return unsatisfactory Certificates to exporters in the Colony by air-mail for correction.

The importer named in the Certificate, or the Hong Kong Government Office, will inform the Collector in whose office the Certificate has been lodged when ships are diverted to other ports. In these cases the Collector will either forward the Certificate to the other Collector concerned or send it to the Hong Kong Government Office for later transmission, as desired. When cargo remains on board a vessel for another port the Collector will send a suitable advice under existing standing instructions.

It should be clearly understood that the smooth working of the scheme is dependent upon strict compliance with the above conditions. The Commissioners of Customs and Excise will not hold themselves responsible in any way for delays due to non- receipt of Certificates of Origin or to receipt of incomplete documents. In these circumstances immediate delivery of goods will be obtainable only by depositing the full duty involved, the particular difficulties being resolved through the Hong Kong Government Office in London.

The attention of Hong Kong exporters is invited especially to the following points:-

(a) It has been possible to obtain the agreement of H.M. Customs to this scheme only by giving an undertaking that the Hong Kong Government Office in London will deal with all queries.

(b) It is essential that exporters should adhere strictly to the procedure approved by H.M. Customs, otherwise it will be quite impossible for the London Office to cope with the numerous queries which will arise.

(c) Queries which require reference to Hong Kong from London will be dealt with by cable whenever possible, on a repayment basis.

(d) As the scheme is based on a trial period of one year only, if it is desired to continue the arrangement beyond this limit, applications should be forwarded to the Director of the Hong Kong Government Office in London through local Chambers of Commerce in time for the Director to make the necessary representations to the Commissioners of Customs and Excise early in July 1955.

(e) The scheme is at present restricted to the ports of London, Liverpool, and Glasgow. If extension to other United Kingdom ports is likely to be requested, notifica- tion to this effect should be sent to the Director of the Hong Kong Government Office in London as soon as possible.

(f) Exporters who have no objection to the name of the Hong Kong supplier of the goods concerned being made known to their United Kingdom importers do not need to take advantage of the scheme.

APPENDIX XXXIV

SOME LONDON OFFICE STATISTICS

Visitors

Letters Inwards

Letters Outwards

Cables Received

Cables Despatched

850

4,951

3,620

160

182

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