COPY
Decypher.
280
A.77
From CHINA.
Sir A. Clark Kerr, (Hongkong).
23rd October, 1938.
D.
6.55 p.m.
23rd October, 1938.
12.20 p.m.
23rd October, 1938.
R.
No. 4 Tour Series A.
T.V. Soong, at the instance of Chiang Kai-shek,
cutting of
has come to me with the following request:
Hongkong-Hankow railway will oblige China to fall back upon
Burma Yunan gp. omtd. in transit as main route for
importation of arms and ammunition. Chinese Government
have approached Governor of Burma who is alleged to have
assented to transit of munitions as "trade" subject
ultimately to one eighth of regular tariff duty.
Chinese Government points out however that
Burmese tariff on munitions is high sometimes rising to
fifty per cent so that even one eighth regular duty is
substantial.
They beg that munitions destined for China be
allowed to pass as "Chinese Government's imports" and one
eighth waived. They would be prepared to pay all expenses
directly incurred expressly with regard to customs and
police on account of these importations.
T.V. Soong states
that Governor has expressed his readiness to grant a higher
drawback than the usual seven eighths provided that import
duties on certain Burmese products exported to China be
readjusted. Chinese Government are quite willing to make
these readjustments but do not want the main question to be
delayed pending negotiations.
The Chinese Government also ask for relaxation in
their favour of "dangerous goods regulations" and of
regulations governing passage through Burma of military
trucks and motor cars.
Chen Chi-tang7