COPY.
(F970/79/10)
F.E.40.
FEDERATION OF BRITISH INDUSTRIES.
21, TOTHILL STREET,
LONDON, 3.7.1.
26th January, 1939.
136
Sir,
Pending the receipt of your reply to our letter
of December 15th regarding the general situation in China,
I am desired to draw your attention to the following extract from a letter received by one of our members from
an important customer in Hongkong :-
"Present prospects are not so bright, for, as you will be well aware, trading conditions in the south West Provinces are very much disorganized owing to the closing
of the Pearl River and the wangtung aterways. appreciate the desirability of having these
You will
aterways and
communications restored with the least possible delay,
and therefore solicit your influence in authoritative circles to bring about this highly important and necessary
adjunct to te trade of this Colony."
In addition, we are informed by our Hongkong representative under date of January 10th, that "apanese merchandise of every description is pouring into Canton duty free from Japan and Formosa and there is no doubt that
He adds the Pearl iver is absolutely safe for navigation. that the attitude of the Japanese in South China towards the British is not too unfriendly and it is unfortunate that advantage has not been taken of this atmosphere to insist on the preservation of our commercial ri hts in this area as, by doing so, we wold run little risk of serious opposition.
I need hardly emphasize the great dependence of
Hon kong on trade with south China and the serious danger which threatens the economic welfare of the Colony while
the