CO129-510-7 Allegations of discrimination against United States companies in Hong Kong 22-3-1928 - 8-1-1929 — Page 47

CO

(A 7139/1752/45)

Dear Wills,

FOREIGN OFFICE, S.V.1.

20th November, 1928.

47

I have been reading with interest the correspondence

between the Board of Trade and the Colonial Office about the alleged

discrimination against United States interests in HongKong, the

last letter in which was your letter to the Colonial Office of the

5th September last (C.R. T.1308/28).

I am a little afraid that, if we show ourselves intractable

on both the points mentioned in the representations of the American

Embassy, namely the restriction of motor omnibus licences in

HongKong to British vehicles and the requirement of insurance with

a British company in connexion with advances from the Trade Loan

Fund, we may expose ourselves to retaliation from the United States.

Without going into the merits of the HongKong Ordinance in retard

to motor licences, it seems clear that in this particular field we

run no risk of retaliation, since there are no imports worth

mentioning of British motorcars into the United States or territory

administered by the United States. In the field of insurance,

however, we might be subjected to retaliation of a rather serious

nature. I think, if my memory serves me right, we have indeed in

the past had trouble with the United States on this subject.

While therefore I see that in your letter under reference

you think the requirement about insurance is much less objectionable

than the restriction against foreign made motor buses, I am wonder-

ing whether in practice a concession on this point would not be a

better tactical move. I do not know what is the value of this

requirement so far as British insurance companies are concerned,

but I can hardly believe that in practice it could be very conside-

rable. If my surmise is correct, it hardly seems worth while

retaining an Ordinance in HongKong which may open the door to any

amount/

J.J. Wills, usg.