CO129-585-8 Sino-Japanese conflict- British policy regarding Trentsin negotiations 8-1-1940 - 19-4-1940 — Page 29

2.

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1. Only form of prevention would be search of all

persons and goods at the boundaries of this area and it is

questionable whether even this heroic method would be

entirely effective.

2. Once in the concession there are no means of proving

that currency even in [grp. undc.] quantities was not

legitimately acquired.

As regards gambling:

(1) There is no satisfactory definition which would

exclude legitimate transactions and still could not be

evaded by an astute business man;

(2) It is difficult to make punishable by by-laws

what the laws of many countries do not regard as a

punishable offence;

(3) Detection would require employment of a staff of

chartered accountants with powers to scrutinize all

account books.

(4) Thorough and constant inspection of books would

amount to inquisition particularly if Japanese observers

were present.

I therefore submit the following suggestions for

consideration.

First the Council should give fullest publicity to a

warning that the right to use national currency in the

concession does not include a right to bring it in or take

it/