I doubt if it would be wise to mix ourselves
up in this. It is true that the interest of Hong
Kong lies in keeping on good terms with the
Kuantung Government, who are near while the
Central Government are far. But I doubt if we should
do well to assist them to collect a tax which may
not be popular with the Central or other Provincial
Governments. Nor (since goods liable to transit tax
presumably pass through Fuantung Province without
breaking bulk) to I see any administrative
advantage in collection of the tax at Kowloon,
unless it is to avoid delay to goods in areas
liable to Japanese air attack.
?as proposed.
i.e, as at 'A'
*. & Coweil
17.6.38
محمد
18,8,38
12
(See 1.)
Mr.Gent discussed this with
H. K.
Mr.Walker, G.M. of the Railway, and Sir J. Brennan
this morning.
tax was,
Mr.Walker said that the transit
he thought, a new tax which the
provisComal Government were imposing in view of
their probable shortage of funds. They had
considered imposing a similar tax before, at the
time the Working Agreement had been negotiated,
du but he had been persuaded from doing so then,
as it was liable to cause congestion on the
railway by holding up traffic. He thought,
however, that this tax could probably be collected
at Kowloon without too much inconvenience, from
the