Changes

In 1932, facing a worldwide [[Great Depression]] and higher tariffs from the United States, the British Commonwealth nations decided at the Imperial Economic Conference to protect industry and agriculture in the Empire by raising tariffs on imports from outside the Empire and encouraging colonial entrepreneurs. Since Hong Kong was a free port with no customs duties on imports or exports, industrialization there was different than in other British colonies, where industry could only be established with the aid of protective tariffs and other government assistance, and where manufactured goods could only be sold in local markets. Hong Kong's industrialization rapidly expanded thanks to the new preference for goods made inside the Empire, and especially to the higher tariffs on Japanese textiles, footwear, and other goods. Chinese entrepreneurs in Hong Kong soon took over from the Japanese as the main competitors of British manufacturers in textiles and rubber footwear.  The local and regional market expanded, with 24,000 ocean-going ships clearing the harbor in 1939. The large-scale relocation of industrial enterprises from mainland China began in the late 1930s, and resumed after the war.<ref> Norman Miners, "Industrial Development in the Colonial Empire and the Imperial Economic Conference at Ottawa 1932." ''Journal of Imperial and Commonwealth History'' 2002 30(2): 53-76. Issn: 0308-6534 </ref>

In 1932, facing a worldwide [[Great Depression]] and higher tariffs from the United States, the British Commonwealth nations decided at the Imperial Economic Conference to protect industry and agriculture in the Empire by raising tariffs on imports from outside the Empire and encouraging colonial entrepreneurs. Since Hong Kong was a free port with no customs duties on imports or exports, industrialization there was different than in other British colonies, where industry could only be established with the aid of protective tariffs and other government assistance, and where manufactured goods could only be sold in local markets. Hong Kong's industrialization rapidly expanded thanks to the new preference for goods made inside the Empire, and especially to the higher tariffs on Japanese textiles, footwear, and other goods. Chinese entrepreneurs in Hong Kong soon took over from the Japanese as the main competitors of British manufacturers in textiles and rubber footwear.  The local and regional market expanded, with 24,000 ocean-going ships clearing the harbor in 1939. The large-scale relocation of industrial enterprises from mainland China began in the late 1930s, and resumed after the war.<ref> Norman Miners, "Industrial Development in the Colonial Empire and the Imperial Economic Conference at Ottawa 1932." ''Journal of Imperial and Commonwealth History'' 2002 30(2): 53-76. Issn: 0308-6534 </ref>

===Second World War ===

===Second World War ===

[[File:VC John Robert Osborn Statue Military of Canada Hong Kong.jpg|left|thumb|Statue, Military of Canada, Hong Kong's Park.]]

[[File:VC John Robert Osborn Statue Military of Canada Hong Kong.jpg|thumb|Statue, Military of Canada, Hong Kong's Park.]]

London realized it could never defend the isolated colony against [[Japan]], but had to send forces to maintain imperial prestige. Indian and Canadian troops were sent in 1941 but they lacked training, equipment, and ammunition. They served a sacrificial role, with 6500 imprisoned for the duration, while British Commonwealth forces sought a major victory in North Africa. Refugees pured in from the mainland pushing the population well over one million, with extremely crowded conditions. Japan ruled from December, 1941 to September 1945, a time of hyperinflation and food shortages. Upwards of half the population left for the mainland.<ref> Andrew J. Whitfield, ''Hong Kong, Empire and the Anglo-American Alliance at War, 1941-1945.'' (2001) [http://www.questia.com/read/101710900?title=Hong%20Kong%2c%20Empire%20and%20the%20Anglo-American%20Alliance%20at%20War%2c%201941-45 online edition]</ref>

London realized it could never defend the isolated colony against [[Japan]], but had to send forces to maintain imperial prestige. Indian and Canadian troops were sent in 1941 but they lacked training, equipment, and ammunition. They served a sacrificial role, with 6500 imprisoned for the duration, while British Commonwealth forces sought a major victory in North Africa. Refugees pured in from the mainland pushing the population well over one million, with extremely crowded conditions. Japan ruled from December, 1941 to September 1945, a time of hyperinflation and food shortages. Upwards of half the population left for the mainland.<ref> Andrew J. Whitfield, ''Hong Kong, Empire and the Anglo-American Alliance at War, 1941-1945.'' (2001) [http://www.questia.com/read/101710900?title=Hong%20Kong%2c%20Empire%20and%20the%20Anglo-American%20Alliance%20at%20War%2c%201941-45 online edition]</ref>