CO129-587-9 Smuggling of kerosene oil and other commodities into China 22-4-1940 - 19-6-1940 — Page 3

3

national currency:

of the

that if necessary exports to Macao should be rationed, prevent the divers wins to that territory of

more conducted the contraband reffic fromin Hong Kong.

12.17artim

21.5.40.

I agree.

I cannot see how Hong Kong can have a credit balance so far as foreign exchange is concerned in acting entrepôt for kerosene.

as

Even if we imagine that the kerosene is obtainable from sterling sources I do not think China is from the currency point of view a very valuable country to which to export:

But can we believe that the kerosene is obtained from sterling sources? It must surely almost certainly come from dollar sources or jet conceivably from a guilder source. (If from a guilder source the position may possibly be eased by the German invasion of Holland but not certainly so; the position of the Java guilder is still obscure but it is quite on the cards that it will be linked with the dollar instead of joining the sterling-franc-belga ring). Even supposing, which is I think unlikely, that the kerosene came from Trinidad, there would not be any advantage, since the more Hong Kong takes from Trinidad, the more some other part of the Colonial Empire will have to take from a dollar or guilder

source pro tanto. Friday kong stake a commed to

Daw cureny sure, & sell to Chind

from

from the exachage

Liür

д

new minitigate

كته

2

1.5.40.

l

As a matte

law

#4-12

is

Au

no

bligation to

impose

special

he fees.

h

mišich the

Choose Catons

to make

effecting the chance host;

ban of importation with Chine of

Kerosene oil.

As a matter of neighbourliness

Gur

the TAK

14

fainly take into recount !!) the

immensa importations which go on nude cover of Japanese force with