@
Conclosure.
293
"Kiaochow Procedure" I had intended that the concession
Eight
embodied in his Article should be confined to Rail-borne
A
goods, which would have the effect of giving an advantage
to the Railway for the conveyance of coast-wise freight
between Hongkong and Canton. Looking to the dubious
prospects of the Railway in its competition with junk-
-borne cargo I should in its interests have been glad to
establish this preference but the soundness of the prin-
-ciple at issue is, I admit to myself, questionable.
8.
Article 9 is designed to assist
the Chinese Customs in preventing smuggling across the land
frontier of the New Territories. Mr. S. 3. C. Ross, the
Acting District Officer at Taipo, reports that he sees no
objection to this article, and I enclose a copy of a
minute from him on the subject dated the 12th. instant.
Article 10 is again a concession
9.
to this Colony and I may mention that the co-operation of
the Chinese Customs Authorities has already proved to be
of great value to the Imports and Exports Department of this Colony in collecting the newly imposed duties on
liquor.
10.
Article 11. There is so far as I
1, not
am aware no reason to anticipate that this will not be acceptable to the Merchants of this Colony, and will probably prove to be of value both to Hongkong and to
China.
11.
Article 12 contains the proposed
arrangements for the collection of duty on goods carried by the Kowloon-Canton Failway. Mr. B. S. Lindsey, the Chief Resident Engineer, welcomes this article in its present form, and Your Lordship will notice that sub- -section (e) of the clause will prevent the levy of such charges as likin, lo-ti-shui and other miscellaneous imposts on goods carried by this Railway to Stations on
the