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not aware of any arrangement & about a proper supervision could be exercised by the Chinese Customs Service on the trade between Hong Kong & the mainland, if the proposed frontier was extended. We are not in favour of the establishment of Chinese Customs House on the Island, where presence of Chinese officials would be most unusual & undesirable of course.
Nor would it be justified in depriving China of a proposal unless that fort de jure belongs to us in law & in fact way back. And even then it would be better that such an arrangement be effected by this...