save those ports on a list to be agreed to between the Customs and the Harbour Master but such instructions shall be discretionary only and may be varied or revoked at any time either generally or in specific instances. Where sufficient evidence is forth- coming that vessels which were cleared from Hong Kong for a port in China failed without sufficient justification to proceed to such port, proceedings for a penalty will be normally instituted when such vessel returns to Hong Kong. Vessels of less than 200 net registered tons clearing from Hong Kong for a port in China will be advised, unless the Customs otherwise requests, to call at one of the Chinese Customs' island stations in the vicinity of Hong Kong. Such legislation as may be necessary for the carrying into effect of this paragraph will be submitted by the Government to the Legislative Council of Hong Kong in due course.
4. The Government hereby grants to the Customs liberty to enter upon and patrol those areas in the waters of the Colony of Hong Kong described in the Schedule hereto (hereinafter called "prohibited areas") and therein to stop any vessel for the purpose of examining her papers; if it is found that any such vessel which is carrying cargo has not been duly cleared from a port in Hong Kong the Customs shall, unless such vessel is allowed to proceed on her voyage, place such vessel in the custody of the nearest or most convenient Hong Kong authority. The Government will submit to the Legislative Council of Hong Kong legislation necessary for the purpose of giving effect to this paragraph including the prohibition of the entry into a prohibited area of any cargo carrying vessel which has not been duly cleared from a port in Hong Kong. Nothing in this paragraph shall be deemed to impose upon Government any liability to concede to the Customs any right of search, confiscation, detention or fine or any right which it would be a breach of International law for the Government to concede or the Customs to exercise.
5. The Government will from time to time consider the question of prohibiting the use for the purpose of carrying cargo of vessels licensed as Class IV under Table T of the Regulations under the Merchant Shipping Ordinance, 1899, having regard to the needs of the Colony and the services rendered to the Colony by such vessels as cargo carriers.
6. The Government will consider what measures may be practicable for direct- ing that export of goods from the Colony to China across land frontier shall take place only at Sha Tau Kok at a point opposite Ling Tong, at the point where the Kowloon- Canton Road crosses the frontier and at Lowu railway bridge and at any other points which may be agreed upon and towards hindrance or prevention of exports at other points on such frontiers.
7. Nothing in these provisions shall apply to goods which are intended to be exported to China by Air; no officer shall be stationed by the Customs at Kai Tak Aerodrome and the officer at present stationed there shall be withdrawn.
8. The Customs and the Superintendent of Imports & Exports will each of them supply to the other any information which they may respectively acquire which, in their respective opinions, might be of assistance to the other in the prevention and detection of the smuggling of narcotics and dutiable commodities, or of the exportation or importation, as the case may be, of prohibited exports or imports.
9. Customs arrangements in respect of goods being transported on the Kowloon- Canton railway shall as heretofore be the subject of agreement between the Govern- ment and the Ministry of Communications of the Republic of China but payment in Hong Kong of duty due to the Customs shall by the terms of any such agreement remain optional except insofar as assistance may lawfully be given to the Customs by virtue of any Ordinance, rules or other laws relating to the said Railway for the time being in force in the Colony of Hong Kong, or by contractual stipulation.
10. During the continuance of this agreement the person from time to time appointed to the office of Commissioner of the Chinese Maritime Customs in Hong Kong (and also all Departmental Commissioners in Hong Kong) shall be of British Nationality and shall be persons acceptable to the Government.