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COPY.

No. 99 in 3590/1915.

Enclosure 2.

Government House,

Hongkong, 22nd. November, 1915.

403

şir,

I have the honour to acknowledge the receipt of

your Confidential letter of the 27th. October relative to the

conveyance of enemy cargo to China marx and the comlicity of the

Java-China-Japan stemmers therein.

2.

Every possible step is taken to prevent the transhipment in Hongkong of all cargo of enemy origin or destina- -tion. The Java-China-Japan Company have made no attempt to tranship such cargo but they do not conceal the fact that they do carry a certain amount of through cango comsigned to enemy firms.

The instructions from the Secretary of State for the Colonies do

not, however, authorise interference with such cargo on neutral

or allied ships. The cargo is of an unimportant nature and is

openly shown on the manifest. It is probable that any interference

with such cargo would result in the diversion of certain steamers

from this port, and no advantage whatever would be gained.

I have etc.. (Sd.) F. H. May.

Governor,"co

Sir Everard Fraser, K.CM.G..

H. M. Consul-Genral,

Shanghai.

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