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F 6570/3361/10,

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OUT FILE

FOREIGN OFFICE,

S.W.1.

7th July, 1939.

82

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Sir,

2.

With reference to Colonial Office letter

No. 54000/39 of the 7th June, in which the observations

of this department were invited on a proposal by the Governor of Hong Kong to amend the Merchant Shipping

Ordinance, 1899, I am directed by Viscount Halifax to

inform you that he has consulted His Majesty's Ambassador

in China on this matter. copy of the telegraphic

correspondence is enclosed for convenience of reference.

In view of the opinion expressed by Sir Archibald Clark Kerr, in which His Majesty's Consul-General at Canton and His Majesty's Trade Commissioner at Hong Kong also concur, that the balance of advantage would appear to be against the issue of the proposed ordinance, Lord Halifax would suggest that, should Mr. MacDonald see no objection, the Governor of Hong Kong

might be instructed to defer action until Sir Archibald Clark

Kerr has explained his view of the position to the Chinese

authorities and requested them to reconsider the matter.

3. A copy of this letter is being sent to the Board of

Trade.

The Under-Secretary of State,

Colonial Office.

I am,

Sir,

Your obedient Servant,

(sgd) R.S. Howe

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