Hongkong, May 2.
While the National Government and the Canton authorities are faking a great interest in the coming conference of Japanese Consuls General in Formosa to be called by the Japanese Governor-General, befeause of its political importance, foreign merchants in Hongkong are algo interested in the meeting, Which is believed to be prompted im part by a determination to improve Japanese trade in Hongkong and South China, "Anew Japanese trade agency has recently been established here for the main purpose of pushing the sale of Japanese goods in this part of the country, following the cessation the boycott and other anti-Japanese activities in Kuangtung.
With the revival of Japanese trade and South China, im= porters of textile goods from Lanfeashire are worried by competition. Importers of bicycles have to com pete with Japanese vehicles which fre half the Birmingham prices. Hongkong does not need many bleyeles owing to the hilly roads on the Island, but the interior offers a good field following the widening of harrow paths in to motor roads.
Custom's Duties Agitation Meanwhile, Chinese and foreign merchants are still agitating for closer trade connections with Kuangtung. Hongkong merchants hope the South west Political Council at Canton wilt reduce tariff duties in favour of commodities from Hongkong.
Tt seems that the Canton Government is willing to grant a preferental tariff on Hongkong goods, it local merchants and bankers are prepared to float a big loan to the Chinese authorities for industrial projects and military defence of Kuangtung. Money is algo required to stabilize the depreciated notes of the Kuang tung Provincial Bank, Hence the loan and preferential tariff are mutually related, Bankeys hhere are inclined to grant a big 1 reported to be $15,000,000, if the will be better business with Kuan; tung. "Besides, a part of the oan will be used to stabilize the govern ment notes which are worth about sixty-five cents, Hongkong. cur: for every paper dollar. The d w due to the lack of cash reserve the Provincial Bank, which has been used for the payment of troops and. purchase of aeroplanes and armaments.
believed in commercial cit-les here that these issues are having the attention of Sir William Peel, the Governor, who is now back from his holiday in Japan. These two ques tions were briefly discussed when Mayor Liu Chi-wen of Canton was here last month. Further discussion
week.
Aikely to take place in the coming
Text read from the printed page and cleaned; old type leaves the occasional error.