Encl. in P/L desɔ. No.12 to Feking from C.C. S'hai. of 11/1/1936.

No.2.

office of H.M. Trade Commissioner à

Commercial Secretary,

Shell House,

24-32, Queen's Road,

HONGKONG.

January 3rd, 1936.

Dear George,

You may remember that you asked Pelham last May

whether the Green Island Cement Company could have supplied

the cement for the Canton-Hankow railway, the contract for

which want to Indo-China; see your letter No.46 (2/130/1935)

of May 4, 1935, and Pelham's telegraphic reply.

In the course of a discussion yesterday with the

Secretary of the Green Island Cement Company about the rea-

trictions on imports of cement into south China I asked

whether Indo-China suppliers were similarly obstructed, and

he brought up the question of the railway contract, in ful-

filment of which consignments are still passing through

Hong rong I asked whether he had had an opportunity to

tender, and he said that he had, but that his price had been

higher than the price for Indo-China cement and that it would

not have paid his company to reduce their quotation further.

The price mentioned in Pelham's telegram to you

(HK. $4.10) is lower than that given in your letter to him

($4.70) as being the price of Indo-China cement, so that,

unless your figure was in Shanghai or canton dollars, one

or other of the figures is wrong, and I thought it might be

worth while to report what I was told yesterday.

Yours sincerely,

(800) R. H. SCOTT.

A.H. George, Esq.,

Acting Commercial Counsellor,

SHANGHAI.

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