CO129-541-12 Application by Soviet Oil Company Union Petroleum Trust for permission to erect an oil tank... 14-11-1932 - 28-3-1933 — Page 36

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to do so on the mainland, but he suggests that the desire

to secure a depot in Hong-Kong is evidence of the fact

that the Soviet Organisation consider that they will have

better facilities and greater security in Hong-Kong.

Mr. Agnew stated that in the case of two commodities, oil

and tobacco, there is an elaborate organisation

established for their distribution throughout the whole of

South China. If the Soviet organisation is able to

establish itself in this market alongside the existing

agencies it will be very favourably placed to carry on its

work of propaganda which is likely to be used to the

detriment of the existing oil companies and of other

British interests in China. The application of the Soviet

Organisation for the lease of land at Hong-Kong appears,

therefore, to raise questions of considerable importance to

British interests, and the Secretary for Mines will be glad

if, before a decision is reached which may result in this

Organisation securing a lease on Crown land, consideration

can be given to the views expressed on behalf of the

Asiatic Petroleum Company.

I am, Sir,

Your obedient Servant,

Fakearling

Director.