189

to see

by

what

means

the Chinese

Government could give effect to

such a proposal

without exposing

their revenue to risks which Her Majesty's Government would not be justified in asking them to

incur.

It appears to My Lords that Her Majesty's Government can hardly hope to combine the

advantages of retaining Hong Kong a British Possession, and of obtaining for it the privileges

of a Chinese Port.

Earl

Granville is aware

that goods shipped from Shanghae to Canton (e.g.) pay only half the export duty which is charged

on them when shipped to a foreign

port, such as

Singapore,

and that goods imported at Canton from Shanghae, pay

only half the import duty which

is charged upon them when imported from Hong Kong.

Under these circumstances,

My Lords are unaware of any arrangement by which a proper supervision could be exercised by the Chinese Customs Service of the trade between Hong

Kong

and the mainland, if the proposed privilege were granted, except by the establishment of a Chinese Custom House upon

the Island, a course which

would be certainly

most unusual

and

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