I
130
Mr. Fiddes
The most important point is to save
good trans-shipped at H.K. and the ports of the
Malay Peninsula, especially Singapore, from
having to pay higher duties in France, and as
the French Govt. have narrowed the question to
that issue I would pursue the matter on that
basis. We can ask for something more, if neces-
sary, later on.
The French reply is by no means unaccommo
dating or unreasonable, and I am strongly against
hinting at retaliation, which could scarcely
be allowed, and would not in any case be likely
tohave much effect on the French Govt.
The French Govt. ask for a concession in
return because they think that the admission of
transshipped goods from Canada at the minimum
tariff rate would result in some diminution of
their revenue. This is not the case
-
goods,
in order to obtain the minimum tariff, would
simply cease to be transshipped at our ports.
and the only result would be a loss of trade to
our Colonies, by diversion of traffic from the
routes hitherto followed, without any effect on
French Customs revenue.
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I would ask F.0. to point this out to the French
Govt., at the same time explaining that the tariff
on wines and spirits at H.K. and in the S.S. 1s
purely for revenue purposes, and that the present
rates have been brought about by the necessity of
finding revenue to make up for the loss resulting
from measures to restrict opium smoking, that it is
not possible to reduce them and that in view of the
explanation just given H.M.C. hope that the French
Govt. will allow the concession as to trans-shipped
goods without demanding a return.
Sir St. Just
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