CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 322

CONFIDENTIAL,

My Lord,

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FL 19 PR 19

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GOVERNMENT HOUSE,

HONGKONG. 22nd. February, 1919.

I have the honour to acknowledge the

receipt of Mr. Long's Confidential Circular Despatch of the

9th. Novamber with regard to the question of the control of

essential raw materials within the Empire.

2.

It must be remembered that Hongkong is

not a producing country and that not one of the materials

named in the Committee's report originates in the Colony. Hongkong is an entrepot for the trade of the Far East, a

warehouse in which merchants of all countries and nationaliti-

-es find it convenient to store their goods while in transit

from one part of the world to another. The port happens to be conveniently situated; steamship lines find that it suits their purposes; and merchants welcome the absence of restrictions and the freedom from taxation by way of customs dues or otherwise. The prosperity of the place is entirely consequent and dependent upon its freedom, and I cannot urge too strongly that this essential condition should in no way

be interfered with.

3.

It is suggested in Mr. Long's Despatch that the blonies generally should control exports, but I would ask that this may not be required of Hongkong. If Hong- -kong continues to exercise the control which has been

rendered necessary by war conditions, trade must begin to

leave the place. Hides and oils from Canton will go direct to

Shanghai

RIGHT HONOURABLE

VISCOUNT MILNER, G.C.B.,

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