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procedure now obtaining in Hong Kong considerable
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quantities of small arms and ammunition are finding
their way into China without the permission of the
Chinese National Government Although it is clear
that, with regard to goods in transit, the
Government of Hong Kong is bound by the provisions
of the Convention and Statute on Freedom of Transit,
signed at Barcelona on April 20, 1921, I venture
to suggest that the Hong Kong authorities accept
as the determining factor as to what constitutes
goods in transit, documents issued in the country
in which the shipment originates. It would not
appear that the Hong Kong authorities would be
violating either the spirit or the letter of the
Statute of Freedom of Transit in insisting that
some evidence of the intention to transship in
Hong Kong appear in the bill of lading or other
document relating to the shipment prepared in
the country of origin. On the contrary, those
authorities would seem to be merely acting
pursuant to the provision in Article V of the
Statute that "Each Contracting State shall be
entitled to take reasonable precautions to
ensure that
goods
are really in transit".
The regularization of the present
situation in the manner suggested would result in
eliminating the present subterfuge now indulged
in by Hong Kong importers (whereunder they now
inform American exporters that shipments are
destined for Hong Kong and inform the Hong Kong
authorities that the shipments are destined for
China) and would cause Hong Kong importers to
furnish American exporters with correct information
in regard to the ultimate destination of the goods.
The/