13
For FO reply and desp. 16 Gov. Concurring in principle sei 52741/28 "Treatment of Refugees
Ju 3002
30026/27 blow
n
Copy to Foreign Office, saying that the
S. of S. agrees that the sanctuary principle as
laid down by Sir R.E. Stubbs in 1922 should be
adhered to, and that subject to Sir Austen
Chamberlain's concurrence he proposes to inform the
Governor that he approves of the continuance of the
present policy.
Nos. 12 and 13 deal primarily with Customs
difficulties, but it will be seen that Sir C. Clementi
cannot resist the opportunity to press once more on
the S. of S. his proposals for regional recognition.
His adherence to these proposals in the face of reproof
and criticism is a matter of some surprise, and it is
still more strange that he makes no reference to the
arguments which have been so repeatedly advanced
from this end. Fortunately the recent telegraphic
correspondence on this point which took place since
this despatch was written makes it unnecessary to
enter into further arguments with him, and it is to
be hoped that his visit to Sir M. Lampson will induce him to abandon (his pet theme.
But these despatches on the Customs are
none the less very important in that they emphasize
an aspect of tariff difficulties which is apt to be
lost sight of, namely, that the higher the tariff
the greater the incentive to smuggling from Hong Kong
and the greater the likelihood of friction between
the two Governments and the possibility of the
establishment of a preventive organisation which would
result in a virtual "blockade" of Hong Kong.
Although the proposed increase in tariff on the 1st
September