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Enclo.No.2.
insisting on the use of omnibuses of British
manufacture where a public utility service was to be
carried on under Government licence. Such
discrimination as exists affects all foreign made
omnibuses and not merely those of American
manufacture. I might add that it is only in the case
of omnibuses that there is any stipulation of
British manufacture; the great majority of private
cars and privately owned hire-cars in the Colony are
of American manufacture and there is of course no
tariff discrimination whatever against these cars.
There is no truth in the further allegation that
vehicles of American origin are subjected to a more
frequent and severe system of inspection than
British vehicles.
I enclose a copy of Government Notification
No.689 of 19th November, 1927, to which reference is
made in Foreign Office letter of 22nd March, 1928, and
would observe that while it confers certain powers on
in itself
the Governor-in-Council it does not prescribe that
omnibuses must be of British manufacture.
3. As regards the allegation that discrimination
has been practiced against United States Insurance
Companies in Hong Kong in connection with loans from
the Trade Loan Fund, the roots of the charge lie in
an attempt to transfer Insurance from British to
American Companies in certain cases where the policy
of insurance was due for renewal. No objection had
been taken to American policies in the first instance
and none was raised to their continuation when
insurances were renewed with the same Companies.
British Companies concerned drew attention to
intensive