BE WRITTEN IN THIS MARGIN.

Registry

No: F 3527/1/10.

Lar

50

August, 1940.

Despatched

M.

Draft.

Sir A.Clark-Kerr, Shanghai.

Telegram.

No:

(12) You

Your telegram No. 648 (of July 30th:

Kowloon Customs).

The British authorities are not responsible

for the internal administration of the Kowloon

office of the Chinese Customs, whose functions

are, I understand, to supervise Customs work in

ad jacent Chinese territory. In so far as the

latter is under Japanese occupation, the demand

that the Customs Administration shall conform

to the procedure in other occupied areas is

comprehensible.

2.

We should object to the appointment of

a Japanese Commissioner but the requirements

mentioned in your telegram do not infringe

British sovereignty in the Colony and would

seem to be a matter for arrangement between the

Japanese authorities and the Inspector-General.

3. I appreciate that it is more difficult

for the latter to plead force majeure in this

case to his superiors at Chungking, but if there

is a real danger of having a separate Customs

service established in the occupied areas, I

think that the Chinese Government would be well

advised to allow him to compromise. It is not

la matter in which we can usefully intervene at

the present time. You may at your discretion

comminicate this view privately to Sir F.Maze.

O.L

NOTHING

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