4
general policy in China, which it may be convenient
to record on this paper:
(1) Negotiations with Canton.
Sir C. Clementi expounded his pet theory
of regional recognition, but he made it clear that he
attached importance not so much to the formal act of
recognition as to concluding arrangements with the
Canton Government for the settlement of affairs in
which Canton and Hong Kong were mutually concerned,
and to the preservation of friendly relations with
South China. The Foreign Office agreed that it was
obviously desirable that everything possible should be
done to enter into working arrangements with Canton,
and so long as these arrangements were not embodied
in formal documents which raised a question of
recognition, they would certainly not object.
was impressed on Sir . Clementi that the word
"recognition" was like a red rag to a bull, end that
if he could avoid this in future and also draft his
proposed agreements or arrangements so as to give them
an informal appearance, he would find that there would
be no
difference
authorities here.
of outlook between him and the
(2) The Chinese Maritime Customs.
It
Sir C. Clementi expressed the view that
the only hope of saving the Customs from disintegration
lay in devising a scheme for distributing the surplus
revenue to Provincial Governments. He hoped,
therefore, that the Foreign Office would take the
initiative and press a policy of this kind upon the
other