184
Paraphrase telegram from Viceroy, Foreign & Political
Department to Secretary of State for India
dated 3rd March 1926.
On
A telegram stating that there is a shortage of
rice in Canton has been received from the Goverment of
Hong Kong. Government of Kuomintung experience difficulty in financing shipments from Bangkok and have sought permission from strike Committee, by whom anti-British boycott has been declared, to import Rangoon rice, condition that other British goods are not imported, permission has been granted. The Government of India are desired by His Excellency to prevent shipment from Rangoon by using any statutory powers they possess, otherwise to use their influence with Rangoon merchants with a view to their refusing to ship unless boycott is completely withdrawn. Questions of imperial policy appear to be involved in this suggestion.
Although we desire to assist the Administration of Hong Kong in any difficulty, we are disinclined to favour this proposal. In Section 19, Sea Customs Act, ample statutory powers exist and it would be possible to waive the general objection to making use of these powers for other than fiscal purposes in presence of other overriding considerations. But since freindly discussions and commercial negotiations are in progress with China, prohibiti must presumably be restricted to Canton. Restricted prohibition of this kind is unlikely to be effective as it would be easy to circumvent it by reshipping rice from other ports. Besides, the supply could be obtained from other sources and the suggestedprohibition might only have the effect of diverting trade elsewhere and at the same time
fail to achieve the real object of causing Canton some serious
I
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