In any further communication this subject, please quote
No.
and address-
7411/2866/10.
not to any person by name
but to-
"The Under-Secretary of State,”
Foreign Office,
London, S.W.1.
Daf.
14
24
112DEC1936
C. O. REGY
FOREIGN OFFICE.
S.W.1.
10th December, 1936.
Wired 14/12
15
вору
to
Sir,
2.
I am directed by Mr. Secretary Eden to state that
consideration has been given to the memorandum by the
Secretary of State for the Colonies P.E.J. (35)6 on the
possible desirability of a Customs Union or other special
arrangement on matters of trade between Hong Kong and China.
With regard to the disadvantages of a Customs Union
it seems that many of these would be avoided if a portion of
Hong Kong were set aside as a free port area somewhat on the
lines of the arrangement adopted at Tsingtao during the
period that that port was leased to Germany. The reservation
of such a free port area, the possibility of which is referred
to in paragraph 6 (e) of the Secretary of State's memorandum
would, it is assumed, be made a sine qua non in the event of
negotiations being undertaken with a view to the inclusion of
nong Kong within China's tariff wall.
3.
The problem of the relations between Hong Kong and
China would appear to nave two aspects: (1) the immediate economic interests of Hong Kong and (2) the desirability of
putting the relations between Hong Kong and China on a basis
which would diminish as far as possible the dangers to be
feared from Chinese irredentism. In any definite effort
that may be made to attain these objects it seems desirable
that the approach should be both cautious and gradual.
The Under-Secretary of State
Colonial Office.
Mr./