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This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Ofies If not required for official use.]

Σ

AMENDED COPY.

FROM CHINA.

Decode.

Sir M. Lampson.

(Peking).

November 7th, 1929.

D.

12.45.p.m. November 7th, 1929.

R. 9.00.2.m. November 7th, 1929.

No. 890.

18

Following received from Mr. Aveling No. 219.

Addressed to Peking No. 219, repeated to Shanghai. In discussing Sino-Hongkong customs agreement with Minister for Foreign Affairs yesterday conversation turned to general question of coast trade and inland

water navigation.

Dr. Wang confirmed press report that a government

committee consisting of representatives of Ministry of Foreign Affairs, Ministry of Commerce and Ministry of

Communications had recently been established for the purpose of considering procedure to be adopted in regard to withdrawal of cabotage rights enjoyed by foreign

shipping. He himself was representing his department

and the line he proposed to adopt was that, whilst principle of reservation of coastal and inland water

trade for national vessels must be established, modus

vivendi will have to be found to cover transitional

period during which Chinese shipping will be hopelessly inadequate to cope with trade. Solution might be found on the following lines (a) special licences not renewable

to be granted for a period of years to foreign vessels

at present engaged in coastal and inland trade.

(b) Purchase...

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