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should be taken to see that Schedule D was so worded as to preclude the levy of likin or other irre ular charges on goods conveyed by the Kowloon-Conton Railway. Owing to the outbreak of the revolution this agreement has not yet been ratified. Article 41 provided that the agreement should come into force on the day on which the Chinese Section was declared open for traffic from Conton to Siem
Chun (i.e. it has been in force since üth. October, 1911) and
should continue in force for years from that date. As, however, conditions in China ever since the opening of the railway for
through traffic have been fer from normal, it is desirable to alter
the date of commencement of the agreement from th. October, 1911,
to the date on which the agreement is hereafter ratified by the
British and Thinese fovernments. In the meantime in defiance of
Schedule D likin has been levied on the railway ever since April,
1912, and repeated protests against such levy have met with no
reply. Moreover, no steps have been taken by the Chinese Government
to build the loop-line to connect the Kowloon-Canton with the
Canton-Hankow line, of which about 100 miles to the North of Canton
are now open to traffic.
4.
A Customs Agreement was drafted by this Govern-
-ment in consultation with Dr. A. H. Harris, Commissioner of
Chinese Maritime Customs for the purpose of increasing the control
over the launch and junk traffic between Hongkon, and China, in
order on the one hand to protect China's revenue, and on the other
hand to extend facilities to the trade of the Colony especially in
connection with the distribution of goods to non-treaty ports. This
draft was forwarded to the Secretary of State in Sir F. Lucard's
Confidential Despatch of 20th. April, 1910, and it was at the same
time submitted to the Chinese Government by Ir. A. H. Harris. It
was intended that the formal negotiation of this Agreement should be initiated by the Chinese Government; but that Government has so far made no move in the matter. The Agreement would be beneficial
to both Goverments.
b.
For the past 24 years, since the formation of
tlie