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LIMITED DISTRIBUTION.

Decypher.

Kr. White (Tientsin)

29th December, 1939.

D.

4.22 p.in.

30th December, 1939.

R. 6.15 p..

30th December, 1939.

28

No. 2.498

Addressed to Shanghai telegram No. 718 of 29th December. Foreign Office telegram No. 866 to Tokyo, paragraph 4.

Smuggling and gambling. I have discussed the question with the Chairman of the Council who would be responsible for

giving affect to any agreement. He has taken expert advice.

Before making suggestions I desire to explain practical

difficulties.

Council can issue by-laws "desirable for the good rule and

the Government" of the concession. By a wide interpretation

this might be taken to cover prevention of sauggling and

gambling if difficulties mentioned later were overcome,

though the Chairman could not commit his His Council in

advance but by-laws could not be enforced against other

foreigners except by their Consular courts, which would

probably decline to act. Chinese could be handed over to

their own courts but if this method were effective they

would safeguard themselves by employing foreigners.

As regards smuggling practical difficulties are:

1./

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