9 of 1940 file.
AX SECRET (2)
15838.34/37
76
29
GOVERNMENT HOUSE,
HONG KONG.
b b
Kmaß
Sir,
RECEIVED
12 DEC1939
O. REGY
28th November, 1939.
I have the honour to refer to correspondence on the
subject of the navigation of the Pearl River resting with my
secret despatch of 24th July, 1939, and to transmit for your information the accompanying copy of a letter (with enclosures)
received from Messrs. Butterfield and Swire.
2.
(with
As regards direct trade between Canton and Hong Kong
I have reliable information which confirms the statements made
by Messrs. Deacon and Company, Limited, Canton, to the effect
that this is now of considerable dimensions.
Cargo is
principally shipped from a secret wharf near Canton on board
lighters which are said to bear the Japanese naval ensign (not the Portuguese rlag) and which proceed to the island of
Taishan near the mouth of the Pearl River. From there the
goods are transferred to vessels registered in Hong Kong which make the round trip, on a clearance nominally for the port of Nam Tau (just beyond the British frontier), in about three or
The Chinese syndicate which controls the traffic
four days.
is said to be under the Japanese aegis.
3.
Although this is in contravention of the agreement quoted in my earlier despatch, and although the Chinese
Maritime Customs are defrauded of revenue, I incline towards the view held by the British Trade Commissioner, Mr. J.C.
THE RIGHT HONOURABLE
MALCOLM MACDONALD, M.P.,
&C.,
&C., &e.
of of
вору