3

6. Gov. Conf

O bono

on issue

licences.

4.3.29

of omnibs

It appears from this that

discrimination in favour of British

omnibuses in Hong Kong is in fact exercised

in the manner we suggested, that is by

influence and administrative action, and not

by any definite regulation.

It does not

appear any change in the procedure would be

possible which would make it less obnoxious

to the Americans. It seems to me that we

might put off the American representatives

at least for a time, by saying that there is

no discrimination by law or regulation against

American omnibuses, and that there is no

restriction in the licences issued. They

may, of course, ask whether in practice the

issue of licences is restricted to British

omnibuses, and we can think about our answer

then.

I would therefore suggest sending a

copy of this to the Foreign Office, reference

No. 5, suggesting that the reply to the United

States Embassy should be as above, if they

concur.

5. Came

12.4.29

"Mr 13.

I fear

cannot put off thinking

about the next stage in the

Controversy.

Surely, it is defensible

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