CO129-585-9 Sino-Japanese conflict- Chinese custom stations 14-7-1940 - 17-12-1940 — Page 38

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DEPARTMENTAL No.2. 53838:56

38

Decypher.

Mr. Broadmead (Shanghai)

14th September, 1940.

D.

By W/T.

17th September, 1940.

R

10.35 p.m.

17th September, 1940.

No. 821.

23 SEP 194vvvvvvv

C.O. r

Your telegram No.916.

Inspector General of Customs estimated that while the closure of the Hong Kong office would not seriously embarrass the work of the Customs as a whole, he would like to try a different line of attack.

2. He is convinced that Japanese demands are inspired solely by desire to gain prestige. He believes that he could put a stop to Japanese pressure if the Government of Hong Kong would address a communication to the local Commissioner roughly on the following lines:- "The Hong Kong Government are aware that the question of control over the Kowloon customs frontier stations might develop into a controversial issue. It will be realised that if the question of Customs Head Office in Hong Kong were to develop in such a manner as to embarrass the Hong Kong Government, they might be compelled to request the customs to withdraw from British territory for the duration of the present hostilities".

Inspector General of Customs believes that if Japanese realise that the only consequence of making trouble on this issue would be the closure of the Hong Kong office they would leave it alone.

3. The only relevant treaty provision seems to be condition No. 3 of Article 6 of the Anglo-Chinese Agreement of September 11th 1886, and I do not think this could usefully be quoted against us in the present context.

4. Subject to the views of Hong Kong Government, I think this suggestion is worth pursuing. There is some urgency as the Japanese are continually pressing the Inspector General of Customs for a decision.

Repeated to Hong Kong telegram No.287, Chungking telegram

6.753.