CO129-558-11 Mission of Sir F. Leith-Ross to China- proposals for a Hong Kong - China customs... 29-9-1936 - 30-12-1936 — Page 12

12

(13)

In Clamson, In Cowell,

P. E. J. (35) 6.

In Dusly que los sean

letter what he world like

He thinks it might

See F. heill Ron's

considered by

be

ad well

ん

Dept. talegrett

Worthing Kong

my and

h Chive

Comments

4

The Treasury,

Eddard

4.12.36.

To mi

minnie

Mr. Clauson asked for my comment on this.

I think it may be true that the Colonial Office

memorandum stated the case against a Customs union

rather strongly, and there is something in the

comments on points of detail made by Mr. Norman

Young and Sir Frederick Leith-Ross. I should

however like to make some further comments.

(a) As regards a free port, there is no mention

of such facilities in Sir Frederick Leith-Ross's

proposal. Obviously such an arrangement would do

something to remove the disadvantages referred to

in the Colonial Office memorandum. The real

difficulty is that in order to provide adequate

a

free port facilities it might be necessary to turn

the great part of Hong Kong into a free port, since

such facilities would be desirable not only for

trade referred to as "non-Chinese entrepot trade"

but for thesamentent of the imports ultimately

destined for China. These are often goods imported

by merchants in Hong Kong without any definite idea

of