7

licences to omnibuses of British manufacture,

the statement that motors of foreign manufacture are subject to more frequent inspection is

incorrect. As regards the insurance, the Govt. did not object to American policies being taken out when the loans were first granted but refused to agree to transfers from British to American Companies. In the

latter case the Government's action can be defended on the grounds set out in paragraph 3 of our letter to the Board of Trade (No.4), but as the discrimination against omnibuses of foreign manufacture is thought to be on a different footing, it may be necessary to instruct Hong Kong to revise the regulations. However, we should clearly wait for the Board of Trade's reply before taking any definite action.

? send a copy of despatch to the F.O. ref. No.8 saying that the S. of S. would prefer to await the reply from the Board of Trade to No.4 before expressing any opinion as to the nature of the reply to be returned to the United States Embassy.

and send copy despatch and draft to

F.0. to Board of Trade lf. ref. No.4.

5. Came

10.8-28

? as proposed.

WB2078

Mrios

9. To F.0. (8 and.) (10 /c. 7) 23/8/251

27/10 10. To B/T. (w/e. 749) 23/8/28. 4.7.

28

7/25/2

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