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 19

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2.

On preliminary consideration I

was inclined to the opinion that it was

unlikely that any arrangement of this kind

could be devised which would be of value to

Hong Kong. I enclose for your information

a copy of a note prepared in the Colonial

views fammed

Office setting out the conei

which

grose on first consideration of the matter.

On the basis of present information I am

in substantial agreement with the conclusions

of this note.

3.

Certain considerations have,

however, been urged in favour of a Customs

union ar rangement as against the arguments

put forward in the enclosed note. In the

beu

first place it has suggested that some of

the objections to a Customs union from the

point of viewof Hong Kong would be removed

if it were possible to devise free port

facilities for the convenience of such

part of Hong Kong's trade as was not

ultimately