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transaction must be regarded from the point of view of

the Hong Kong authorities as a re-export.

3.

Sir John Simon would therefore be glad if the

Secretary of State for the Colonies would call the

attention of Sir William Peel to this point and enquire

of him what was the precise nature of the contracts

produced.

If it transpires that the contracts produced

were in fact made between the American exporters and the

ultimate consignees Sir John Simon would be prepared to

instruct His Majesty's Ambassador at Washington to bring

the facts of the case to the notice of the United States

Government.

I am,

Sir,

Your obedient Servant,

CW. Orde

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