No.67

Copy to Hong Kong No.27.

British Consulate,

Tamsui.

28th September, 1937.

37

Sir,

With reference to the second paragraph of my despatch

No.65, I have the honour to report that the Keelung Takao

Hong Kong service of the Osaka Shesen Kaisha has again been

restored, the "Hong Kong-maru" having sailed from Keelung

yesterday. I am now informed from a reliable source that the

real reason why the service was interrupted was that just as

the boat was about to leave Takao the Japanese authorities

intervened, objecting that much of the cargo was of a kind which

would be liable to defeat the objects of the naval blockade.

It appears that a strict control is being exercised over exports

to Hong Kong, though the policy is being kept as quiet as

possible. Consequently I am unable to give a precise account of

what the restrictions may be. I think there is a contraband

list, but that some discretion is exercised as to its enforce-

ment. Goods on through bills of lading for ports other than

Chinese are not affected, and even contraband billed for Hong

Kong may sometimes be passed if the consignee be non-Chinese,

and fairly obviously needs the goods for his own use. But

whatever the details may be, it is clear that the main object,

so far as concerns Formosa, is to prevent supplies of Formosan

coal reaching Chinese hands.

Regarding the Chinese evacuation problem, it appears

that the "Rosalie Moller" was delayed and reached Takao on her

first /

2.

His Excellency

The Right Honourable

Sir Robert Craigie, K. C.M.G., C.B.,

etc., etc.,

Tokyo.

etc.,

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