CO
(A 7139/1752/45)
Dear Wills,
FOREIGN OFFICE, S.V.1.
20th November, 1928.
47
I have been reading with interest the correspondence
between the Board of Trade and the Colonial Office about the alleged
discrimination against United States interests in HongKong, the
last letter in which was your letter to the Colonial Office of the
5th September last (C.R. T.1308/28).
I am a little afraid that, if we show ourselves intractable
on both the points mentioned in the representations of the American
Embassy, namely the restriction of motor omnibus licences in
HongKong to British vehicles and the requirement of insurance with
a British company in connexion with advances from the Trade Loan
Fund, we may expose ourselves to retaliation from the United States.
Without going into the merits of the HongKong Ordinance in retard
to motor licences, it seems clear that in this particular field we
run no risk of retaliation, since there are no imports worth
mentioning of British motorcars into the United States or territory
administered by the United States. In the field of insurance,
however, we might be subjected to retaliation of a rather serious
nature. I think, if my memory serves me right, we have indeed in
the past had trouble with the United States on this subject.
While therefore I see that in your letter under reference
you think the requirement about insurance is much less objectionable
than the restriction against foreign made motor buses, I am wonder-
ing whether in practice a concession on this point would not be a
better tactical move. I do not know what is the value of this
requirement so far as British insurance companies are concerned,
but I can hardly believe that in practice it could be very conside-
rable. If my surmise is correct, it hardly seems worth while
retaining an Ordinance in HongKong which may open the door to any
amount/
J.J. Wills, usg.