CO129-549-14 Commission of Enquiry into trade of Colony 17-7-1934 - 18-1-1935 — Page 31

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Government took a part of the profit from the issuing Banks it would probably be criticised.

The Hong Kong Government placed an embargo on the export of silver during the Great War, and an embargo on the export of currency above $25 was imposed during the Boycott in 1925.

22nd. August, 1934.

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W. E. L. SHENTON.

Sir,

Hongkong, September 4th, 1934.

Since I forwarded you my two Memoranda I have been approached by a member of your Commission, who states that he has read and agrees with my Memoranda but what he feels is that the Colony should get closer to China. He stated that he favoured an area of the Colony being brought within the Chinese Customs Jurisdiction.

In my opinion, if it is desired to get closer to China, there can be no better way than by joining up the Colony's road system with the Kwong Tung road systems, and this can be done by connecting our own road system with the Shum Chun-Canton road (now in the course of construction), at Shum Chun thereby linking the Colony up with the extensive system radiating from Canton, also by arranging with the Chinese authorities for the building of a road from Shum Chun or some other point on the British border, a distance of only 27.6 miles and linking our own road system with the road running from Chen Mok Tau, a station on the Kowloon Canton Railway, to Weichow, Swatow, Amoy and Foochow. The Kowloon Canton Railway is already issuing through tickets to Weichow.

Any proposed customs arrangement should in my opinion be brought forward by China and not by us, and in any event should be avoided as long as possible, and if agreed to, only on the basis that we do the collecting for China.

If the Chinese Maritime Customs were prepared to give the information, they could speak to large quantities of machinery and materials going into Canton duty free under the aegis of the Government Monopoly, and they might also speak to quantities of textiles and other goods packed in cases purporting to contain machinery for the

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