CO129-587-9 Smuggling of kerosene oil and other commodities into China 22-4-1940 - 19-6-1940 — Page 11

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the Japanese, with which neither the

Government of the Colony nor the

Chinese Customs could interfere.

The attempt to put a stricter control

on exports from the Colony would mean, if it is to help the Chinese Customs,

an unfriendly policy towards Macao,

and would présent still further

opportunities for illegal importations

by the Japanese into China.

3.

The shore of Mirs Bay is

periodically swept by Japanese forces

acting against the Chinese guerilla

organisations based on the villages in

the vicinity. Neither the Chung ing

Government nor the Chinese Customs are

there.

in a position to operate effectively

in the present circumstances, and while

that state of affairs prevails it would

appear unreasonable for the Chinese Customs

to make complaints of this kind to the

Government of Hong Kong.

4.

mes

In view of the considerations

the S. of S. would propose,

subject to Lord Halifax's concurrence, to

inform the U. A. G. of Hong Kong, in reply

to the enclosed despatch that while the

Colonial Government should co-operate in

ae

any practicable measures to prevent the

Colony being used as a base for defeating the

Customs

Chinese Maritime control of imports into

China, the Colonial Government should not be

expected to undertake in excess of their

legal obligations measures which (a) will

raise