84

frequent the cities and ports of New-Chwang, Tang-Chow,* Tai-Wan (Formosa), Chau-Chow (Swatow),* and Kiung-Chow (Hainan).

They are permitted to carry on trade with whomsoever they please, and to proceed to and fro at pleasure with their vessels and merchandize.

ARTICLE 13.

Employment of Chinese by British Subjects.

439/1/10.

L. PUDENTI ALı.

upon the

The Chinese Government will place no restrictions whatever employment, by British subjects, of Chinese subjects in any lawful capacity.

ARTICLE 14.

Hire of Boats by British Subjects. Smuggling. British subjects may hire whatever boats they please for the transport of goods or passengers, and the sum to be paid for such boats shall be settled between the parties themselves, without the interference of the Chinese Government. The number of these boats shall not be limited, nor shall a monopoly in respect either of the boats, or of the porters or coolies engaged in carrying the goods, be granted to any parties. If any smuggling takes place in them, the offenders will, of course, be punished according to law.

ARTICLE 18.

Protection of British Persons and Property.

The Chinese authorities shall at all times afford the fullest protection to the persons and property of British subjects, whenever these shall have been subjected to insult or violence. In all cases of incendiarism or robbery the local authorities shall at once take the necessary steps for the recovery of the stolen property, the suppression of disorder, and the arrest of the guilty parties, whom they will punish according to law.

• Chefoo and Swatow were opened to trade in the place of Tang-Chow and Chau-Chow respectively.

Jir,

2.

FOREIGN OFFICE,

3.8.1.

17th February, 1926.

530

I am directed by Secretary Sir Austen Chamberlain to acknowledge the receipt of your letter ko. C 2081/26 of the 3rd instant, and to state that ke much appreciates the very full information furnished to this department as to the situation in hongkong und Vanten. I am to enclose herein, for the information of är. Secretary Amery, oogy of a memorandum, already circulated to the Cabinet, in which the history of the efforts made to cope with the problem is set forti. in detail. In appendix XVIII will be found copies of recent telegrama exchanged between His Majesty's Minister, Peking, lis Kajesty's Consul-General, Canton, and this department, referred to by the Governor of Hongkong in his secret

The Memorandum should telegram No. 0.0.31 of February 6th.

be treated as strictly soufidential, seeing that it contain the unparaphrased texts of cypher telegrams.

3.

At the discussions at longkong on Jamary 26th, the following suggestions were put forward:

(1)

Whether it would be possible to induce

(*1)

the League of Nations unanimously to pass censure en the existing Goverment of Janton for ite defiance of the Treaties;

Whether, in the event of the Cauton deverment ignoring such a censure, all the

Powers will be willing to institute a boycott

of Canten.

# Under-Secretary of State,

Onlonial office.

+

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