CO129-574-14 Collection of Chinese customs in Hong Kong 2-11-1938 - 13-1-1939 — Page 18

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CONFIDENTIAL

1

Shanghai Office of the

18

Inspectorate General of Customs,

421 Hart Road,

Shanghai, 1st November, 1938.

Dear Mr. Pritchard,

It is expected that the de facto Authorities in Canton

will ultimately introduce the new tariff locally throughout the

Province, and a delicate situation may thus arise in connection

with the Kowloon Customs. The Hongkong Authorities, for example,

may possibly object to the local introduction by us at the

Kowloon Railway Station of a tariff promulgated by an

unrecognised de facto Government, in place of the existing

tariff of the recognised Government, on the ground that

acquiescence on their part to a change from what may be styled

a de jure tariff to a de facto tariff would imply tacit

recognition of a hitherto unrecognised de facto Government.

But even if the Colonial Authorities take no action in the

matter and leave the decision to the Customs, (provided the

latter are in a position to settle the question themselves)

another difficulty may arise - the de jure Government will

probably require us to continue to apply the present tariff

(especially in Hong Kong where we enjoy the protection of a

foreign flag and cannot properly plead force majeure), which

would bring us into conflict with the policy of the Japanese

Authorities and/or the new Administration (whatever it may be)

in Canton. Seeing that the established practice has hitherto

been for the Kowloon Commissioner to function in direct

association with the Canton Authorities (and assuming that this

practice will continue with the de facto Authorities), it

would be inconsistent for him to apply one tariff at one of the

E.A.Pritchard, Esquire,

KOWLOON