Louds. No. 3.

Conference at Government House held on

16th September, 1927.

14

PRESENT:-

SUBJECT:-

His Excellency the Governor,

H. B. M. Consul -General, Canton,

The Commodore,

Commander Fitzgerald,

Colonial Secretary,..

Secretary for Chinese Affairs,

Attorney-General,

Harbour Master,

The Hon. Mr. D. G. M. Bernard, and

The Hon. Mr. W. E. L. Shenton.

Abuse of British Flag on Chinese Inland Waters.

E

It was agreed that steps ought to be taken to stop the abuse of the British Flag. The present position appears to be that the Hong Kong Government has no power to refuse the British Flag provided the Merchant Shipping

Act is complied with. This makes it possible for ships wholly owned by Chinese, who need not even be British

Subjects, provided they form a Company registered in Hong Kong (with its principal place of business here), to claim

the right to fly the British Flag. The Consul-General,

however, under King's Regulations can refuse to certify to the Chinese Customs that any particular vessel is

entitled to British protection in Chinese Inland Waters under the provisions of section 7 of King's Regulation No.5 of 1915, and should any ship (Sc. claiming the

British Flag) engage in trade without the Consul -General's

certificate,

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