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 28

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COPY.

Sir F. Leith-Ross.

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Mr. Waley.

I did not hear a great deal about this in Hong Kong

because it was obvious that the opposition of the then

Kwangtung Government would have been fatal to any such

proposal.

But, from what I did hear, I think that the view

generally held in Hong Kong is that any arrangement which

brought the Colony within the Chinese Tariff Wall would be

likely to be too successful to last: i.e. that there would

be such a rush on the part of industry of all kinds to set up

factories etc. in Hong Kong that the Chinese Government would

find itself forced to bring the arrangement to an end.

I attach some comments on the C.0. memo

(Sga.) N.E. YOUNG.

2.12.36.