t-

(2)

Status, It is thus obvions that intention at both ends of the contract is a voyage in transit within the meaning

of the Convention.

I have no wish that Hong Kong shall be used

as a base for illicit traffic even though intervention by Hong Kong seriously prejudices Colony's relations with its neighbours and it was for that reason that the Governor proposed measures set out in his confidential despatch of the 14th January。 But latest correspondence with

the United States Government appears to indicate that that Government is only prepared to treat traffic with the

manufacturing South West blos es illicit traffic if all other/countries do the same and I have no precise information as to

215

existing

the attitude of other countries except Great Britain.

I would request an early reply as a number of/

contracts are affected.

Repeated to Peking No. 39 Copy sent to

Canton No. 25 by safe opportunity.

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