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Other American firms were preparing to do the same if fur- -ther interfered with here. It has throughout the Far been very difficult to convince merchants, particularly merchants of Allied nations, of the justice of our various inter- ferences with cargo in transit when no question of enemy interest is involved. The restrictions on exports to Japan were until a full explanation was received, not a little resented by French and Japanese merchants here and schemes were put on foot for avoiding transhipment in Hongkong. In the case of wolframite these schemes were already solid facte and inasmuch as the very existence of Hongkong as one of the great ports of the world depends on the facilities she offers for transhipment and redistribution, it did not appear expedient to foster this movement by further rea- trictions. Moreover, as the ore was going to United States of America in any case, it was clearly better that it should pass under the scrutiny of this Government.
2.
I
The resulting position was that American firms were allowed to ship to their own country without restriction (save that after the receipt of your telegram of the 16th. February, shipments had to be consign- -ed to the Iron and Steel Institute), while British and other non-American firms were obliged first to offer their holdings to the British Ministry of Munitions knowing full well that the Ministry would not accept the price asked. The cost of the necessary telegrams, the storage and other charges incurred during the not inconsiderable periode elapsing before replies were received formed a handicap against which the British firms concerned not unnaturally
protested.
3.
In May the Superintendent of Importe
and Exports ascertained from the Chairman of the Homeward
Conference
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