CO129-566-3 Canton-Kowloon Railway 4-4-1938 - 20-1-1939 — Page 12

I doubt if it would be wise to mix ourselves

up in this. It is true that the interest of Hong

Kong lies in keeping on good terms with the

Kuantung Government, who are near while the

Central Government are far. But I doubt if we should

do well to assist them to collect a tax which may

not be popular with the Central or other Provincial

Governments. Nor (since goods liable to transit tax

presumably pass through Fuantung Province without

breaking bulk) to I see any administrative

advantage in collection of the tax at Kowloon,

unless it is to avoid delay to goods in areas

liable to Japanese air attack.

?as proposed.

i.e, as at 'A'

*. & Coweil

17.6.38

محمد

18,8,38

12

(See 1.)

Mr.Gent discussed this with

H. K.

Mr.Walker, G.M. of the Railway, and Sir J. Brennan

this morning.

tax was,

Mr.Walker said that the transit

he thought, a new tax which the

provisComal Government were imposing in view of

their probable shortage of funds. They had

considered imposing a similar tax before, at the

time the Working Agreement had been negotiated,

du but he had been persuaded from doing so then,

as it was liable to cause congestion on the

railway by holding up traffic. He thought,

however, that this tax could probably be collected

at Kowloon without too much inconvenience, from

the