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COPY

CONFIDENTIAL (2)

sir,

Page 344

Government House,

Hong Kong.

22nd August, 1939.

164

With reference to your confidential despatch of

21st July, 1939, on the subject of the salvaging of the Japanese S.S. "Jin Kai Haru", I have the honour to inform you that I have considered with my Executive Council the suggestion that provision should be made to render illegal operations conducted without permission by foreign selvage

companies.

2. It was the view of the ouncil, with which I concur

that in the absence of any further approach by the Japanese

salvage company it would be inadvisable at the moment to introduce legislation which could not but draw attention to

C

the fact that it was aimed at this particular case.

3. The Consul-General for Japan was informed on

18th July of the decision conveyed in your telegram.

then no further communication on the subject has been

received.

Since

THE RIGHT HONOURABLE

MALOCIM MACDONALD, M.F.,

&C.,

&c.,

&C.,

I have, etc.,

(sgd.) G.A.S. Northcote.

Governor.

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