CO129-585-9 Sino-Japanese conflict- Chinese custom stations 14-7-1940 - 17-12-1940 — Page 47

Confidential.

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15th August, 1940.

Dear Ashley-Clarke,

May I refer to your official note of the 10th of August (F.2529/1/10) with the draft telegram to Shanghai about the Hong Kong office of the Chinese Customs. That office had, as you know, a useful function while the railway was operating, for securing the through passage into China of dutiable goods from Hong Kong without the need for disturbance at the Hong Kong frontier. Latterly its function has been reduced in the main to certain minor duties of looking after and paying the staff at certain Customs stations in the territory neighbouring on Hong Kong, and also to supervising the collection of some Customs receipts which are still accruing from Mirs Bay traffic. Last year Northcote suggested to Clark- Kerr and Maze that the best thing would be to close the Hong Kong station down as being no longer useful but an increasing embarrassment to Hong Kong. Maze, however did not agree, and I do not think the proposal went so far as to be reported here. Our own feeling, and Northcote's,

H. Ashley-Clarke, Esq.,

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