FO371-23514 — Page 211

CONFIDENTIAL.

Page 211

SAFE

HAND

BRITISH EMBASSY,

CNDARDHINO.

50

No.1104 (126/47A/1938) Copies sent to:

Tokyo No. 515 Shanghai

454

Commercial Counsellor

My Lord,

SHANGHAI, 30th December, 1938

1302

| MAP 1939

In the last paragraph of my despatch No. 940

(122/47A/1938) of November 12th last, I promised a report

on the subject of the smuggling of Japanese goods into

the Shanghai area.

2.

Information has been far to seek, and enquiries

made of the British Chamber of Commerce have produced

little or no result.

3. The local British Customs officials believe

that practically all Japanese commercial cargoes coming

into Shanghai itself are now paying the proper duties.

There is however, even now, a considerable amount of

cargo stored in the godowns and on the wharves under

Japanese control on the north side of the Soochow creek,

which was smuggled in to Shanghai before the Customs

regained their control over Japanese ships and cargoes

when the revised tariff was introduced in June last.

The Customs have made every effort, by watching the

transportation of cargo over the creek, to prevent this

cargo being smuggled into the other areas of Shanghai,

and have secured various convictions against Chinese in

the District Court in this connexion. But it is probable

that in some cases their vigilance may have been eluded.

That there is still much of such cargo left is proved by

/the

The Right Honourable

Viscount Halifax, K. G., G.C.S.I.,

etc.,

etc.,

etc.,

FOREIGN OFFICE.

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