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RECS
REGE 12 JUN 16!
GOVERNMENT HOUSE,
HONGKONG. 5th. May, 1916,
With reference to paragraph 5 of my Confidential Despatch of the 29th. of December, I have the honour to inform you that I had initiated un-official conversations with Mr. E. Gordon
Lowder, Commissioner of Customs, with a view to opening negotiations
which for the Customs Agreement when the rebellion is at present distract- -ing China broke out. I recognise that it is useless to attempt the formal negotiation of the Agreement at the present time; and it is doubtful whether conditions in China will resume a sufficiently normal aspect for such a negotiation for some time to come.
2.
The article in the Agreement which is of the greatest importance to this Colony is Article IX, and as the tax- -ation and control of salt is the most valuable consideration which this Government can at present offer for the concession contained in that article, I am very reluctant to proceed with the necessary legislation for the taxing and control of salt until this Colony shall have obtained this quid pro quo, the value of which is OT- -plained in the enclosed copy of a Memorandum furnished to me at my request by Mr. D. Landale of Messrs. Jardine, Matheson & Co., who are interested in Cotton Yarn having a large Mill at Shanghai.
3.
I am therefore endeavouring to induce the Inspector-General of Chinese Customs to arrange informally to give affect to Article IX of the Agreement in return for legislation in RIGHT HONOURABLE
ANDREW BONAR LAW, M.P. 80..
&c.,
&c. ..
this