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to do so on the mainland, but he suggests that the desire
to secure a depot in Hong-Kong is evidence of the fact
that the Soviet Organisation consider that they will have
better facilities and greater security in Hong-Kong.
Mr. Agnew stated that in the case of two commodities, oil
and tobacco, there is an elaborate organisation
established for their distribution throughout the whole of
South China. If the Soviet organisation is able to
establish itself in this market alongside the existing
agencies it will be very favourably placed to carry on its
work of propaganda which is likely to be used to the
detriment of the existing oil companies and of other
British interests in China. The application of the Soviet
Organisation for the lease of land at Hong-Kong appears,
therefore, to raise questions of considerable importance to
British interests, and the Secretary for Mines will be glad
if, before a decision is reached which may result in this
Organisation securing a lease on Crown land, consideration
can be given to the views expressed on behalf of the
Asiatic Petroleum Company.
I am, Sir,
Your obedient Servant,
Fakearling
Director.