- 2 -
52
losing their status of native goods, and vice versa. At present cargo so shipped would enter' China as
Hong Kong cargo and be subject to a duty which would render this method of shipping impracticable.
(2) Ships destined from the Coast to Canton or vice
}
(3)
versa could tranship cargo in Hong Kong in bond.
The absence of this facility is frequently a source
of inconvenience and expense.
Manufacturers or Merchants could bring native cargo to Hong Kong, store it in bond and subsequently
reship to China without incurring additional duty. With regard to "The Anglo-Chinese Customs Agreement of Hong Kong" above-mentioned, it is understood that the Hong Kong Government approves the terms as set out in the Agreement, except that, while it is willing to control salt so as to prevent smuggling it is not prepared to tax it as is proposed in Article II(a).