CO129-562-20 Whompoa Port- development 19-2-1937 - 4-4-1938 — Page 35

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his first arrival in China.

In the course of the general discussion the Ambassador mentioned, as an example of the readiness of the Hong Kong authorities to co-operate in a proper case, that in response to a request from the Chinese Salt Administration for assist- ance in the prevention of salt smuggling through Hong Kong, the Hong Kong Government had set up a committee to consider the question. The Governor added that there was a

prospect that the results of the committee's deliberations might be satisfactory to the Chinese. He also referred to

the greatly improved collaboration between the Hong Kong and Kwangtung Police on the frontier, which he attributed to the better feeling now being fostered on both sides.

Colonel Li Fong took notes of the discussion.

In

taking his leave he said that the Mayor would be relieved to

learn the views which the Ambassador and the Governor had

expressed with regard to the Whampoa Fort Scheme, of their general attitude of helpfulness, and of the authority given

to Mr. Pelham to act as informal liaison officer in all

questions of trade development.

(Initialled)

A.D.B.

27/3.