Epy to F 9.

NOX SECRET.

Copies to:-

B.A. Tokyo. No.61.

B.A. Shanghai. No.42. Commissioner, Chinese

Maritime Customs, Kowloon.

Sir,

239648

8.

15

GOVERNMENT HOUSE,

HONG KONG.

16th November, 1938.

0/

"/

I have the honour to refer to my secret telegram

4. No.319 dated 10th November, 1938, in which I undertook to

send by letter my comments upon British Embassy, Shanghai,

2. telegram No.1579 of 2nd November, 1938, relative to the

duties to be charged at the Kowloon office of the Chinese

Maritime Customs while the Japanese forces or a Chinese

administration set up and maintained by the Japanese are in

control of Canton. I attach a copy of a letter addressed

by the Inspector General of the Chinese Maritime Customs to

the Commissioner of Customs at Kowloon which sets out fully

Sir Frederick Maze's train of ideas on this subject.

2. That branch of the dilemma, at which the Inspector

General finds himself, which primarily concerns the Hong

Kong Government is expressed by him in the following

passage "The Hong Kong Authorities may possibly object to

the local introduction by us at the Kowloon Railway Station

of a tariff promulgated by an unrecognised de facto

Government, in place of the existing tariff of the

recognised Government, on the ground that acquiescence on

their part to a change from what may be styled a de jure

tariff to a de facto tariff would imply tacit recognition

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&c., &c., &c.

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