FO371-23518 — Page 243

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NO DISTRIBUTION.

Decypher.

Sir A. Clark Kerr (Shanghai)

28th June, 1939.

D.

BY /T.

28th June, 1939.

R.

6.05 p.m.

28th June, 1939.

No. 608.

0000

Your telegram No. 456. Fsub

as01/10

i

81

I have consulted with Messrs. Blunt and Hutcheson and

consider that the balance of advantage is against

introduction of ordinance for the following reasons (1) it

would play into the hands of the Japanese who, as

occupation of Swatow has shown, are anxious to stop all

trade between Hong Kong and unoccupied China; (2) it

would not materially assist Customs to suppress smuggling

from the colony since such little smuggling as is still

done is carried on by junk; (3) it would appear retrograde

step from Hong Kong point of view.

?

decided

2. If it is desired not to issue ordinance I should

like authority to explain reasons to authorities on the

foregoing lines.

Addressed to Foreign Office; repeated to Governor

Hong Kong No. 57, Commercial Secretary Hong Kong No. 65

and Canton No. 63.

29

Av

JUN

A 1.O. RESISTRY.

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