125m
One
for Hong Kong to enter into a Customs Union with China. of the Chinese Ministers suggested to me that the Chinese
while the Government would welcome a proposal of this kind: Governor of Hong Kong recogniseu that it would be greatly to the advantage of Hong Kong. I did not pursue the question, as it obviously involves important political issues, but it
Whether this is appears to me well worthy of exploration. possible or not, every effort should be made, now that the Chinese Government has re-established its authority over Kwangtung, to secure better relations between Hong Kong and the Chinese authorities in the mainland, who are, I believe
anxious to establish closer co-operation with the Colony.
9
The
(13) Another question, raising political issues of a different kinu, is the question of linking up the Indian and Burmese Railways with China by the construction of a new line from the present terminus in Burmch to Yunnan Fu. Chinese Minister of Railways has a scheme on hand for building a line to Yunnan Fu from Kweiyang, with a link to the Canton- Hankow Railway, and expressed the desire to interest His Majesty's Government in the extension of this line
Burmah. It would obviously open an important new trade
route to China overland and I submit it for investigation by
the Departments concerned.
To sum up, my suggestions are that:
to
(1) Every suitable opportunity should be taken,
especially in Ministerial statements, to emphasise our
continued interest in China and our intention to maintain
our position there.
(2) The Japanese Govern..ent should be tolà in a
friendly but fimm manner that the prospect of better relations with the United Kingdo... depends on their respect- ing our interests in China, which are threatened by their present policy of uisruption and particularly by the
Suggling in East Hopei.
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