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Copy.
No.510.
Sir,
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192
GOVERNMENT HOUSE,
HONG KONG.
25th July, 1939.
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I have the honour to refer to your telegram
No. 106 of 6th June, 1939, regarding the draft of a Bill to amend the Merchant Shipping Ordinance, 1899, by enabling the Harbour Master to refuse a port clearance in the case of a ship intending to proceed to a port of China which has not been opened to foreign trade.
2. In connection with the seizure by Japanese forces recently in the West River delta of a ship, the s.s. "Dholera", flying the British flag which was suspected of smuggling goods into China a conference was held in which the Commodore, Hong Kong, the Attorney- General, the Harbour Master, the Commercial Secretary, Hong Kong, and the Commissioner of the Chinese Maritime
Customs for Kowloon and district took part. The terms
of reference of this conference were to discuss the
principles which should govern the policy of this Colony in dealing with the problems which arise from the somewhat clandestine class of trade engaged in by vessels like the
s.s. "Dholera".
3.
The Commodore has now informed me that the
conference reached the conclusion that there appears to be an anomaly in that British ships flying the British Flag are given a clearance to trade to Ports which are forbidden
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.
&C., &c.,
&C.
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