CO129-574-14 Collection of Chinese customs in Hong Kong 2-11-1938 - 13-1-1939 — Page 19

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Kowloon Stations (i.e. the Railway Station) and a different

tariff at other Kowloon Stations; and should complications of

this nature emerge (as the result of diverse instructions) the

Hongkong Government may consider it desirable to request us to

cease collecting duty temporarily in British territory and

arrange instead to collect duty on the Hongkong-Canton Railway

trade either at Shunchun (the Frontier) or at Canton, and thus

avoid raising awkward questions which might cause general

embarrassment. I sent you a letter dated 21st October last,

transmitting a copy of a communication to the Shanghai

Commissioner regarding the recent introduction of the new

tariff in Shanghai, which defines the attitude that I adopted

on that occasion, but it should be borne in mind that the

conditions prevailing here differ from those prevailing in foreign territory (e.g. Hongkong); and that action considered

suitable in Shanghi should not necessarily form a precedent

for similar action elsewhere. It is realised, of course, that

we function in the Colony (instead of at the Frontier) mainly

for the convenience of the Hongkong merchants, and that as the

guests of the Colony our desire is to continue to work in

harmony with the local Authorities; that it is in the interest

of the revenue for us to facilitate the Hongkong/Canton trade;

and that we should avoid, if possible, irksome formalities likely to impede rather than help the conduct of local business. And while adhering to the above general principles, it is desirable in the present case for us to know how we stand in relation to the probable introduction of the new tariff, and

what is likely to be the attitude of the Colonial Authorities in

this connection. The aim should be in the general interest of

all concerned to accelerate the resumption of Railway traffic and general trade with Canton; and try and obviate controversial issues likely either to embarrass the nong Kong Government or