Memorandum on the proposed amendment of the procedure under Article XXIII of the Treaty of Tientsin.

1. I have perused the correspondence enclosed in His Excellency's confidential despatch of 26th February, 1907, relative to the proposals I have made in view of the absolute necessity that exists for improving the antiquated and unsatisfactory procedure now adopted for obtaining for creditors the benefits of Article XXIII of the Treaty of Tientsin.

2. I must confess that on first perusal of this correspondence I despaired of being able to achieve anything, as it seemed to me that all the writers failed to grasp the Hongkong view of the matter. To adopt a homely illustration - A machine has been devised for the benefit of the Hongkong Merchants: they complain of its ineffectiveness, whereupon all the different parts of the machine protest that it works excellently.

3. Sir Havilland de Sausmarez however happened to be staying with me, and, as he had expressed his views, I took the opportunity of discussing the question with him. The result has been very satisfactory; for although it will not be possible to effect all the changes which are needed, I am convinced that some can be made at once, which will be a great boon to the commercial community, and this without difficulty. With these changes, if they are approved, I shall be content for the present, leaving the more thorny topics to be taken up at some future time.

4. It appears that much of what is contained in the correspondence is based on a misconception. It was assumed that I had left out of sight the general duties of the British Consuls to assist as far as possible in bringing legitimate claims of British subjects to the notice of foreign Governments generally, and that I was endeavouring to obtain an undue recognition abroad for judgments of the Hongkong Courts. I believe that it will now be admitted that the intention of Article XXIII of the Treaty of Tientsin was to provide a special safeguard for Hongkong...

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