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agreement Sir R. Stubbs has confined himself almost exclusively to its local impact, but I have the honour to point out that over and above the special interests of the Colony of Hongkong certain vider issues are mluo i involved. Apart from the benefits to British trade in South China generally that might be smacted to accrue from the facilities provided under article IX any agree- mont affecting the Customs status of Hongkong has an important relation to the whole British cosition in China and should, I suggest, be considered in that connection as well as with regard to its purely local effects. From this wider standpoint even the objection urged by Sir i. Stubba ag bis min reason for reversing his predeces- sor's policy the effect of the agreement in increasing the price of salt is open to legitimate criticism. The roorganisation of the Chinese Salt Administration, involv- ing an increase in the price of salt to the whole popula- tion of China, has the full sumort and encouragement of His »njesty's Government and is being carried out under British direction. It seams therefore distinctly illoți. onl for the lɔnykong Government to base ita decision to withdraw from the nemtiations mainly on the ground that under this agrement the few hundred thousand Chinese in Hongkong would be placed on the wide footing in this respect as their fellow-countrymen on the mainland.
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Leaving aside, however, any meainfic criticism of the Congkong Goverment's attitude I feel it my duty to express the view that a question of such importance to british interests generally in this country should be treated as an integral part of our national policy in China, and that any attempt to deal with it ne a purely local problem, to be desided in recordance with the changing views of mucosazive Governors of the Colony of
tione cong.