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reasons advanced by Sir R. Stubbs and Kr. Severn for the audden volte face executed by the Hongkong Coverment it is permissible to point out that the argments against
the proposed agreement vere quite sa valid during the years 1916 to 1918 when the negotiations were in progrO89
This statement can in any on se, as in the following year. hardly be questioned as regards the point on which Sir K. Stubbs takes his strongest stand, the effect of the Tee- ment in increasing the price of salt to the poor of Hong- kong, and it is evident therefore that the present atti- tude of the Hongkong Goverment is due not to any change in political or economic conditions but solely to the fact that the views hold by Sir R. Stubbe and Er. Devern with regard to this question are directly opposed to those of
their predecessor.
I bave the honour to suggest that if obligations vis-a-vis the Chinese Government undertaken by this Lem- tion ander the instructions of "is Hajesty'n Secretary of State and at the request of the Hongkong Goverment are at all times to be subject to disavowal or cancellation owing to a change of policy on the part of the Officer administering the Government of liongkong it will be dif- ficult to ensure that close and harmonious cooperation between the Colonial Government and this Legation which is essential to the wintenance of British orestige and influence in China. It is clear, moreover, that a sudden suspension of negotiations after engagements have been definitely accepted on behalf of His majesty's Government is onlculated to compromise very materially the position
of this Lagation and to prejudice the settlement of other important
sumentent questions under discussion with the "hinese
Government.
In this condemnation of the terms of the Draft
Agreement