53838/20

16.

18

Copy reed. by

DROIT

Air Mail. No. 8. Hong Kong.

70.8.

RECEIVED

1 TEE 1933

Dear Cowell.

C. C. REGY

Government House.

January 12th, 1938.

You may have wondered why I sent you the telegram

about the Chinese Government's stocks of gasoline (my No.12 of

the 10th January). The fact is that the local Manager of the

Asiatic Petroleum Company came to me that morning, gave me

these facts and wanted me to say something which would enable

him to argue back to his Company in London, hoping to be able

to persuade them to revoke their cabled prohibition against

storage on their premises of the Chinese-owned gasoline in

drums.

However I declined to say anything of the kind,

partly because, as I told him, I thought that the view taken by

the Company in London was quite reasonable and partly because

judging by the terms of the Company's telegram from London it

looked as though there had been some consultation between the

Company's officials and the Foreign or Colonial Office and on

that latter chance I telegraphed the information.

The same gasoline gave rise a little while ago to

the question of the payment of duty, the ordinary procedure

being to pay duty on importation and to receive back the bulk

H.R. COWELL, ESQ., C.M.G.,

COLONIAL OFFICE.

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