Treasury Chambers,

Whitehall, S. W.

I agree that as a first step we might merely fix

up an agreement with the Chinese Customs on the lines

of the 1930 proposals but I doubt whether this will

substantially help Hongkong trade; and I think the

possibility of negotiating a Customs union should be

kept in mind and the possibilities carefully explored.

Yours sincerely,

Frituurs

27

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