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F 177/177/10.
sir,
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161
FOREIGN OFFICE,
S.Y. 1.
11th January, 1940.
I am directed by Viscount Halifax to refer to your
letter No. 54000/39 of the 15th December and to inform you
that he has reconsidered in the light of despatch No. 510 of
the 28th July from the Governor of Hong Kong the proposal to
amend the Hong Kong Verchant Shipping Ordinance, 1893.
2. It appeared from the previous despatch from ille
Excellency enclosed in your letter of the 7th June that, as
explained in the memorandum of Objects and Reasone appended
to the Bill, the proposed amendment was designed to facilitate
the preventive work of the Chinese Maritime Customs. Lord
Halifax notes, however, from the Governor's despatch No. 510
that its purpose le also to prevent embarrassment with the
Japanese forces if the latter seize a British ship (or compel
the Customs to seize a ship) which has been officially cleared
for a port prohibited by treaty.
3. Since the clandestine trade of the type of vessel in
question is of doubtful advantage to British interests and in
view of the importance of avoiding unnecessary friction with
the Japanese authorities, Lord Halifax, after having consulted
His Majesty'e Ambassador at Shanghai, has reached the conclusion
that there would be advantage in proceeding with the draft Bill
(as amended in the Governor's despatch No. 810). He would
therefore suggest for the consideration of Er. Secretary
MacDonald that the Governor of Hong Kong should be so informed.
I am,
sir,
Your obedient Servant,
(Sd.) R. G. HOWE
The Under-Secretary of State,
Colonial office.
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