611B.9417/188: Telegram
The Consul General at Hong Kong (Hoover) to the Secretary of State
[Received 7:45 p.m.]
Shipments of cotton textiles to the Philippines which are invoiced as China and Hong Kong products are rapidly increasing, 416,074 yards in January, 906,026 yards in February, 1,854,681 yards in March, 1,464,363 yards in April. Chinese manufacturers’ associations in both Canton and Hong Kong declare that large quantities of Japanese goods are coming to Hong Kong and are reshipped from here as local products. The manufacturers themselves declare that their sales to local wholesalers have fallen off about 50 percent during the past 4 months, and that when they sell goods to wholesalers the latter demand two signed blank bills which the wholesalers evidently fill in and present at the Consulate with the invoices. Full report is being made by mail,50 but in the meantime the seemingly illicit shipments are continuing. Manufacturers here declare that there is collusion between the shippers here and the Customs employees in Manila.
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