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2.
It may be incidentally mentioned here that when the Inspector General met Mr. T.V. Soong in Hongkong in November last year, he (mr. Soong) expressed his earnest desire that the Customs Frontier Stations should not be re-opened as an "occupied port" - no matter what the consequences might be, and pointed out that such a step could but incur adverse criticism and possible serious consequences from Chungking.
The Japanese Military authorities, however, withdrew their forces from the Kowloon Frontier in December, 1939, and the question thus solved itself for the time being.
SITUATION IN JULY, 1940:
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The Kowloon Frontier was again occupied last month by Japanese Military forces, and on this occasion the occupation was gradually extended (for a brief period) to include Kirs Bay, where the Customs establishment at Shauchung the main trade route between the Colony and free China was burnt. Within a few days, however, the Japenese withdrew from the Hirs Bay District, but maintain- ed their occupation of the Frontier area from Namtao to Shatowkok only, and the Customs are again operating at Shauchung in Mirs Bay as elsewhere in free China.
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The
On 15th July, 1940, the Japanese Consul-General in Hongkong renewed his "request" to the Kowloon Commissioner to administer the Kowloon Customs District - including the Her Office in Hongkong end the (unoccupied) Mirs Bay Frontier Stations - as an "occupied port". requirements were identical with those of last October, and were accompanied with the same threat that failure to comply would necessitate the Japanese re-opening the Frontier Stations under an independent regime, thus - jeopardizing the integrity of the Customs administration (vide Kowloon Commissioner's telegram No.818 to the Inspector General, copy of which was forwarded to H.M. Ambassador under cover of the Inspector General's letter of 16th July, 1940).
The Inspector General stated that he was not in a position to acquiesce in administrative changes unless effected by actual force majeure pressed locally upon the Commissioner; end that in the case of the Head Office, situated in Hongkong, it was difficult for him to under- stand how effective force majeure could be exercised.
REVIE
The Kowloon Commissioner endeavoured to work on the lines of the instructions issued to him in the autumn of 1939, i.e., that the question should remain in abeyance for the present and receive further consideration if, and when, the Japanese were in permanent control of the whole Frontier. He further pointed out that it was within the competence of the Japanese Authorities to force the re- opening of such Customs Stations as were located in occupied territory by placing them under the control of some other "occupied" port, e.g. Canton, to which the revenue collection could be remitted and banked with the Yokohama Specie Bank; but that he (the Kowloon Commission- er in Hongkong) could not properly be compelled to deposit revenue in the Yokohama Specie Bank which had been collect- ed at Customs Frontier Stations in the unoccupied irs Bay area. (The present revenue collection at the unoccupied Mirs Bay Stations is estimated at about $100,000 a month, while, except on the Canton-Kowloon Railway which is not
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