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FOREIGN OFFICE, S.W.1.

13th November, 1929.

(F 5746/52/10)

Reyden Grindle.

The telegram from Shanghai enclosed in our official

letter of to-day's date on the subject of the Hongkong

Customs Agreement appears to indicate that further

negotiations have taken place resulting in an offer by

China to extend privileged Factory Duty treatment to

Hongkong factories. The fact that information with

regard to negotiations on a subject of such importance

continues to reach us only from outside sources is

creating a position of some embarrassment and may

possibly result in grave injury to British interests

generally in China. I hope that representations such

as I suggested your making in my letter No. F 5327/52/10

of the 4th November may have the desired effect.

Sir G.E.A. Grindle, K.C.M.G., C.B.

Errs Bincerely Victor Billedern

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