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E-4FEB 1933

100.

Telegram from Governor Hong Kong to the Secretary of State 26

for the Colonies

Dated 4th February Received 7.#5 a.m. 4th February 1933

No. 29.

32

Your telegram No. 7. Soviet 011. If application

to hold land is made by a foreign corporation this Governme; ₺

can refuse permission and need not give reasons though such

action would probably be regarded as discriminatory against

Russian interests and reasons would probably ultimately

become known. If however Soviet Oil Company employed loca}

agents whether corporation or individual permission could

not be refused,

Oil installations require special licence:

but I am advised that if otherwise in order licences could

not properly be refused merely because applicant wished to

sell Soviet products. Government has not sufficient contr‹ 1

over all Crown leases to prevent sub-leases except to foreiį a

corporations.

There will be difficulty of control if Soviet

Oil Company is allowed to

establish its own agency bere

with Russian employees and I am prepared to refuse such

Company permission to hold land here. But if it works

through an agency able to hold land here I should be dispose 3

to place no obstacle in the way. It is not unlikely that

they may adopt this course as enquiries for land have already

been received from a Chinese firm for purpose of handling

** Soviet oil.

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