*
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Maritime Customs, as embodied in the draft agreement. The
concessions therein contained may prove sufficiently
attractive to induce the Chinese Government to concede the
principles contained in the draft Working Agreement. But
whatever decision may be arrived at, I desire to emphasize
the intimate connection which exists between the two
draft agreements and the consequent necessity for arrang-
-ing that negotiations in connection with them should
proceed simultaneously.
Negotiations with regard to the
Working Agreement are at a standstill pending the appoint-
-ment of a successor to Mr. Wei Han, whose resignation of
office in connection with the Chinese Section of the
Kowloon-Canton Railway has been accepted, and in the mean-
-time I do not propose to take any steps to proceed fur-
-ther with the subject of the Customs Convention. When
negotiations are begun it is essential that they should
be initiated by the Chinese Government and not by this
Government. This can be arranged with the Chinese Imperial
Maritime Customs.
6.
As Sir F. D. Lugard and Sir John
Jordan are both in England, I venture to suggest that Your
Lordship should discuss and settle with them the line of
action