64
expressed) that any revisions of the Tariff must be concurred in by His Majesty's Government and that any likin or other form
of levy are prohibited. This Colony has not asked for any corresponding facility at WXXII Canton for its officials to function and collect duties on liquor or on any other article upon which in the future customs duties may be imposed in the Colony. Such facilities are only asked at the frontier station, but if you anticipate any difficulty in regard to this clause and schedule you may possibly consider it advisable to press for complete reciprocity in this matter with the intention of aban- doning it so far as the Canton terminal is concerned provided that the Chinese will agree to the exemption of goods carried by the Railway from dution except in accordance with the Tariff as stated in the Schedule. I may add that in zezartawem the circumstanoss I do not propose to proceed with the separate Customs Convention, (in which matter China by her dilatoriness has lost her opportunità) and if it is pressed later by the Viceroy I shall probably require more favourable conditions than it at present contains.
11.
With regard to Article 37-B (now Article 39)
If
I have the honour to forward in original and translation an extract from the lia Taz Yat Po of the 15th. ultimo which shows how necessary it is that a clause dealing with the policing of the Railway should find a place in the Working Agrement. the transit by railway is insecure there is little hope of suo- cessful competition with the river steamers and I hope that Your Excellency will secure the retention of this clause in the Agree- ment.
12.
Since signing the attached copy of the agreem ment Mr. Chao has received on the 9th instant a telegram from the Director-General of Exix Railways which reads as follows:-- "We have received instructions from the Board to reply that con-
cerning