8. Gov.

secret-

4 16/11/38

Ref 4. Lubunit's obsons on (2). Encloses letter

from fir Frederick Mage.

The line taken by the Governor in this

$

despatch, namely that the Hong Kong Govt. would have

no locus standi for objecting to the Chinese Maritime

Customs collecting within the Colony duties in

accordance with the tariff/promulgated by an

to me to be legally comest unrecognised de facto Government in China Nor, I

think, would abstention from objecting to such

collection represent tacit recognition of the de

facto administration at Canton.

On the other hand, whatever the 16qal

position, I am not sure that such action by the

Hong Kong Government might not be ill received by the

Chinese Govt., and that for the time being it might

not be desirable to cease collecting revenue at the

Kowloom Railway Station and to collect it instead at

the frontier or at Canton.

I suggest that copies of 8 should be sent

to the F.0. observing accordingly and asking for

their observations. Copies of the letter and despatch

should be sent to the B.of T. confidential lf.

? So proceed.

7. Roges

3.12.38.

The liberty of the Charts Rankine Customs

he

1

assert & collect duty amponds

al

thi Tik

terminal of the railway on

parsing into China

a simple matter of

panties

Covels

In this roule is

To all

to avoid intefiounce & delay

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