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mɔt to discuss a working: arrangement in respect of thu joint interests connected with the railway, it was agreco upon that, in consideration of an undertaking on the Chinese side not to establish likin stations along the line
the British side would consent to an imposition of the full Tariff duty on exports from and imports into Hongkong. This mutual undertaking was embodied in Schedule D of the Draft Working Agrooment - a document subsequently submitted
to Peking for ratification.
Although, owing to extraneous circumstances, this Agreement could not be considered in its entirety, Schedule D, as has already been pointed out, did come within the scope of discussion, was accepted and must be takon as
res judicata.
In any case the Hongkong Government loyally ful- filled their obligations thereunder, whereas the Provision- al Administration of Kuangtung, through its Treasur, De- partment, declare that, owing to non-ratification, it declines to be bound thereby. Such being the case, it
remains for the former to revert to the status quo ante
and to abrogate the privileges which the in good faith and a spirit of loyal generosit,, have conceded. The consequences of such action would be very serious, how serious has perhaps not boen completel, realised.
is
It must be to the interest of all concerned to make
the railway a paying and a profitable undertaking, and,
for the sake of the infinitesimal profit to bu derivea
from a levy of likin, to strangle trace along the line, a policy shortsighted in the extreme. Take for example the one item of cotton yarn alone, the import of which into Sheklung is estimated at 25,000 piculs per annum. At
present
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