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COPY.
(MWT 1)
Our Ref: MWT.6.
My dear Keenlyside,
}
H. M. GOVERNMENT
Ministry of War Transport
Office of
Representative for South China,
Hongkong & Shanghai Bank Building,
(3rd floor)
HONG KONG, 2nd October, 1945.
It is most unfortunate that communication from Hong Kong has been so bad and that, apparently, a number of my telegrams have not yet reached London. I thought perhaps you might like to have a brief summary of the position here and the background against which we have to solve our many shipping problems. I sent Home a Routine Report (RR.1) to Port and Transit Control for
distribution last week, which I hope will be helpful and this letter will serve to supplement the information contained therein in regard to matters of interest to F.S.R..
RESUMPTION OF COASTAL TRADE. The information that China Coasters are coming back has got about here and so far as Hong Kong itself is concerned they will be very very welcome because they will be of considerable assistance in solving the pressing problem of imports into the Colony. I do not know how we are going to get over the cabotage issue yet and, with Eric Price, I discussed the matter with Wallinger of the H. M. Embassy Chungking, a few days ago. The condensus of opinion seems to be that reintroduction of British shipping on the coast would be best linked to the magic word "rehabilitation" until such time as a new Treaty could be negotiated. There is no doubt that the Chinese will really need this shipping, and as I mentioned before I left London, the business community will be quite anxious to play. We have, however, to reckon with the Ministry of Communications in Chungking, with whom relations are
/very
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