274
MT.
yesterday.
grindle...
Mr. Beckett brought me these papers
The positionhas to a great extent altered since this despatch was written because the telegram of 7th January has been modified by subsequent telegrams
Q.AG and circulars. In particular the Governor has been told that he need only prohibit the exportation to list 'C' countries of the following articles mentioned
in this despatch, sago and tapioca, Langanese ore, rattans,
tin and tin ore, and tungsten ore.
We have also asked the Board of Trade
in the letter on 28699 whether Governors may be authorised to allow exports without reference to us to all destinations, except European Russia, of all products of the coconut.
This would meet the
enquiries about coconut oil and copra.
There remain the following articles
mentioned in the memorandum:
(a)
Explosives.
The Hong Kong Government want to allow
the exportation of explosives of British origin to neighbouring countries. In this country a general licence has been issued for the importation of industrial explosives to practically all destinations except list 'C' countries, and I do not see, therefore, why Hong Kong should not prohibit the exportation of industrial explosives only to list 'C' countries.
I do not think that we need consult the Ministry of
Munitions.
(b)
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allow to go to Hong Kong are, however, small and I
think that we could leave this alone. Presumably if
Hong Kong asked for an excessively large amount from
Australia the Ministry of Food would refuse to allow
it.
(c)
Rice.
The reason for asking the Colonies to
prohibit the exportation of rice to all foreign
countries is the shortage of rice in India and else-
Where. As regards Indian rice, there is no likelihood
of this being exported via Hong Kong to foreign
countries because the Government of India only allow
exports to countries where there is a large Indian
population, and consequently they would not allow any
exports to Hong Kong. For the reasons given in the
memorandum it would seen inadvisable to attempt to
interfere with the shipment of rice from foreign
countries via Hong Kong to other foreign countries,
and therefore I think that we can agree to rice being
left on the Hong Kong 11st 'C', but we might give the
Officer Administering the Government a warning as to
the possibility of shortage, in which case he would,
of course, take such measures in the way of export
prohibition as were required.
(a)
Sugar.
This also has been put on Hong Kong list
"C", but there seems no objection to this since in
25342 the Board of Trade said that they had no ob-
jection to exports of sugar from Hong Kong except to
list "C" countries.
Butter and Cheese
The Governor has put these on his list
'C'.
The only objection that I can see to this is
that some of the Australian butter and cheese which
the Ministry of Food have bought, but which they allow
to go to Hong Kong, might be re-exported to foreign
countries.
The quantities which the Ministry of Food
allow
(e)
Cotton,
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In this country cotton other than Egyptian
cotton has been put on list 'C' and as the cotton
shipped from Hong Kong does not come from Egypt but
from China and Indo-China there seens no objection to
the