In any further communication

on this subject, please quote

No. F 10829/110/10

and address--

not to any person by name

but to-

The Under-Secretary of State,"

Foreign Office,

London, S.W.1.

CONFIDENTIAL

IMMEDIATE.

FOREIGN OFFICE.

S.W.1.

614

16th December, 1937.

J.

Sir,

I am directed by Mr. Secretary Eden to acknowledge the

receipt of Colonial Office letter No. 53874/37, of the 11th

December, regarding the proposal to open a branch office

of the Chinese National Economic Council in Hong Kong, and

to transmit to you herewith a copy of a telegram on this

subject which he has received from His Majesty's Ambassador

at Tokyo.

2.

While Mr. Eden considers that there is no

technical objection under International law to the

establishment of such an office, he agrees that it would be preferable that no ground should be afforded to the Japanese

Government for allegations that special facilities are being

given by the Government of Hong Kong to enable organs of the

Chinese Government to carry out functions directly or

indirectly concerned with the prosecution of hostilities.

He observes that the Governor of Hong Kong has merely been

informed of the intention to open the branch office in question, and presumes that the Governor has no power He would accordingly actually to prohibit this step. suggest that Sir Geoffrey Northcote should be instructed to point out to Mr. Soong that embarrassment might be caused to the Government of Hong Kong by the presence of such a branch

office,/

The Under-Secretary of State,

Colonial Office.

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