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CONFIDENTIAL
1
Shanghai Office of the
18
Inspectorate General of Customs,
421 Hart Road,
Shanghai, 1st November, 1938.
Dear Mr. Pritchard,
It is expected that the de facto Authorities in Canton
will ultimately introduce the new tariff locally throughout the
Province, and a delicate situation may thus arise in connection
with the Kowloon Customs. The Hongkong Authorities, for example,
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 of a hitherto unrecognised de facto Government.
But even if the Colonial Authorities take no action in the
matter and leave the decision to the Customs, (provided the
latter are in a position to settle the question themselves)
another difficulty may arise - the de jure Government will
probably require us to continue to apply the present tariff
(especially in Hong Kong where we enjoy the protection of a
foreign flag and cannot properly plead force majeure), which
would bring us into conflict with the policy of the Japanese
Authorities and/or the new Administration (whatever it may be)
in Canton. Seeing that the established practice has hitherto
been for the Kowloon Commissioner to function in direct
association with the Canton Authorities (and assuming that this
practice will continue with the de facto Authorities), it
would be inconsistent for him to apply one tariff at one of the
E.A.Pritchard, Esquire,
KOWLOON