CO129-585-9 Sino-Japanese conflict- Chinese custom stations 14-7-1940 - 17-12-1940 — Page 42

548

FROM

COPY FOR REGISTRATION

18/

CYPHER TELEGRAM

O.A.G

4th September, 1940.

Do

{#

R. 4th

HONG KONG.

23.59 hrs.

Addressed to S. of S. Colonies telegram No. 548, 4th September, repeated to Shanghai telegram No. 182, Chungking telegram No. 122, Tokyo telegram No. 96.

42

I have been asked how the Government would regard appointment of a Japanese liaison officer under Commissioner of Chinese Customs who administers from Head Office in Hong Kong certain Customs establishments on and near the frontier.

Except as regards most of the senior posts I cannot object on racial grounds to staffing arrangements of this international machine but I foresee serious difficulties particularly since only some of the frontier stations administered by the Commissioner from Hong Kong are at present situated in occupied territory remainder operating as in free China.

I understand the general practice of the Customs in territory under Japanese control is to yield to Japanese demands of this nature under force-majeure. Clearly thie principle cannot apply in Hong Kong where the Japanese are not in a position to employ force and the Chinese Government would therefore be likely to resent such a concession by the Customs in Hong Kong. On the other hand if the Japanese are not in a position to apply force-najeure in Hong Kong they can and do threaten to disrupt the customs administration in other areas in their control if their demands are not granted and the Inspector General of Customs considers he can no longer resist this concession without incurring serious risk of collapse of the entire customa administration which has only been preserved with the greatest difficulty in face of continued Japanese pressure.

It would be within the competence of the Japanese to compel the customs to yield under force- majeure to a demand for customs posts in occupied territory to be reopened under administration of an occupied port e.g. under commissioner stationed at Canton but it would appear that Japanese are not prepared to follow this course as they are determined to get their man into Hong Kong office.

It would naturally ease the situation for the Inspector General of Customs were the Hong Kong Government to demire but he appreciates that they might find it embarrassing to take such a line and he is anxious not to appear in the light of endeavouring to persuade Hong Kong to pull his chestnuts out of the fire,

Possibly time might be gained and situation be thus eased were Hong Kong Government to reply in somewhat vague terms such Abt. "question is under consideration but appointment of a senior Japanese official would seem to involve some modification of long accepted practice of appointing only British members

་

(message corrupt from here to end. Repetition being

asked for).