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prohibitions and restrictions as a means of protection,

and, while the desire of the Hong Kong Government to

give more favourable treatment to British than to foreign

vehicles should be encouraged in every possible way, the

Board consider that the proper method of according a

preference is by means of Customs duties on foreign

vehicles substantially higher than that, if any, on

British vehicles.

The Board have noted with satisfaction that the

allegation that American vehicles would be subjected

to more frequent and vigorous inspection than British

vehicles is unfounded as, in their view, any such

method for according preference is quite indefensible.

As regards the insurance question, the Board are

disposed to think that the requirement of insurance

with a British company in connection with advances from

the Trade Loan Fund is much less objectionable than the

restriction against foreign made motor buses.

I have the honour to be,

Sir,

Your obedient Servant,

J.J. Wills

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