Mr. Rogers 17.12.37

Mr. Gent

Mr. Duncan 17.12.37

Mr.

Cowell 18

xSir H. Moore at once 18/12

713

715

53874/57

CYPHER TELEGRAM from the Secretary of State for the Colonies to

the Governor of Hong dong.

Sent 4.0 p.m.

18th December, 1937.

(1)

150,

مين

IMPORTANT.

Ilo.269

Confidential.

Your telegram No.307.

I am advised that while there

is no technical objection under international law to the

establishment of such an office, it nevertheless appears

advisable that no ground should be afforded to the J-panese

Government for allegations that special facilities are being

given by the Colonial Governmont to enable organs of the Chinese

Government to carry out functions directly or indirectly

concerned with the prosecution of hostilities.

liaving regard to

position of great importance hold by tional Economic Council in

Government of China there can be little doubt that activities in

Hong Kong would not be limited to ostensible function mentioned

in your telegram.

You should accordingly point out to Mr. Soong that

embarrassment might be caused to the Colonial Government by the

presence of such a branch office in Hong Kong, having regard to

the fact that its activities might be regarded by the Japanese

Government as auxiliary to the prosecution of hostilities, and

that it is undesirable to afford the latter any additional

pretext for the declaration of war and the imposition of a

blockade, which must prevent China from obtaining the larger

part even of those sup lies which are now reaching her through

Hong rong. You should suggest that Er. Soong should accordingly

cxamine whether the functions which the proposed branch office

would fulfil could not be as satisfactorily performed by some

unofficial body or Tim of agents.

Copy to F.0., W.O.,

Admiralty, A. M. Conf. Lff.

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