4
Customs, the revenue collected by which is security 116 for many foreign loans to China; there is the im-
mensely important International Concession at Shang-
hai; there are valuable British Concessions elsewhere;
and here is the question of extraterritoriality, con- cerning which a Commission (whose report I have not yet
seen) has made recent recommendations. I have only
set down a few of the main heads for consideration;
but there are many other relatively minor matters,
as for instance the administration of the Kowloon- Canton railway and its connection with the Canton- Hankow railway, to mention one only, which are of importance to Hong Kong. I venture, therefore, to associate myself fully with that passage in Sir. R. Macleay's telegram No.392 of the 26th October, addressed to the Foreign Office, which reads:- "The question is, are the principal Powers going to permit the Nationalist party to ignore China's obligations incurred at Washington, to abolish the treaties, and to enforce immediate tariff autonomy or are they prepared to put their foot down and insist, if necessary by force, on proper revision only be negotiation and agreement. I trust that any conference between the principal Powers will cover this fundamental issue."
This matter has now become very pressing, and I would urge most strongly that no time should be lost in endeavouring to reach an understanding between Great Britain, the United States of America, Japan and France, concerning the maintenance of foreign treaty rights in
6.
China.
I have the honour to be,
Your most
sir,
Spedient, lements
humble servant,
Governor, &c.
!