CO129-552-6 Traffic of arms to China 2-1-1935 - 27-12-1935 — Page 373

·4-

procedure now obtaining in Hong Kong considerable

368

quantities of small arms and ammunition are finding

their way into China without the permission of the

Chinese National Government Although it is clear

that, with regard to goods in transit, the

Government of Hong Kong is bound by the provisions

of the Convention and Statute on Freedom of Transit,

signed at Barcelona on April 20, 1921, I venture

to suggest that the Hong Kong authorities accept

as the determining factor as to what constitutes

goods in transit, documents issued in the country

in which the shipment originates. It would not

appear that the Hong Kong authorities would be

violating either the spirit or the letter of the

Statute of Freedom of Transit in insisting that

some evidence of the intention to transship in

Hong Kong appear in the bill of lading or other

document relating to the shipment prepared in

the country of origin. On the contrary, those

authorities would seem to be merely acting

pursuant to the provision in Article V of the

Statute that "Each Contracting State shall be

entitled to take reasonable precautions to

ensure that

goods

are really in transit".

The regularization of the present

situation in the manner suggested would result in

eliminating the present subterfuge now indulged

in by Hong Kong importers (whereunder they now

inform American exporters that shipments are

destined for Hong Kong and inform the Hong Kong

authorities that the shipments are destined for

China) and would cause Hong Kong importers to

furnish American exporters with correct information

in regard to the ultimate destination of the goods.

The/