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this handicap to the great benefit of the Kowloon-
Canton Railway and of shipping.
(5). A revision of the arrangements for extradi-
tion as between the Canton Government and Hon; Kong is
very necessary. At present there exists in theory a
unilateral system for extradition of Chinese criminals
from Hong Hong, but the system is unworkable as the only Chinese Government legally recognizable in the Hong Kong courts is the Peking Government which the
Canton Government does not recognize. A bi-lateral
system of extradition should be established.
We do not in this memorandum touch upon such matters intimately affecting the whole future of British interests in China as the integrity of the Chinese Maritime Customs administration, the right
to navigate inland waterways and to retain the owner-
ship of goods after they have left the confines of
treaty ports, and the suppression of piracy and brigandage, because we feel that the arguments on these points are already before his Majesty's Govern-
ment in their fullest form.
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