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flag in ocean-going steamers or river steamers, or other craft owned by them. They can, therefore,
under existing treaties, for all that the Hong
Kong Government can do to prevent them, use the
British flag for purposes of trade from this Colony
along the Chinese coast or on the inland waters
of China. In the past Chinese, who were not
British subjects, have on numerous occasions,
while trading under the British flag in Chinese
waters, committed abuses of various kinds, such
as smuggling, and have even called upon the British
Naval authorities to protect them from the
consequences of their own misdeeds. Now it is
of the utmost importance to Hong Kong that the
British coast wise trade in China and the British
trade in Chinese inland waters should continue
as heretofore, and even be extended and one of the
main objects which we seek to secure in the draft
customs agreement, now under negotiation between this Colony and the Chinese Government, is the
preservation of these rights. If, however, such rights are to be preserved, I consider it imperative that the ong Kong Government should be empowered
to withhold the right to fly the British flag in Chinese inland waters from any, company or shipping firm, which is not genuinely British. I should very much prefer to obtain this power by direct legislation, which would authorize the Hong Kong Government, in express words and without any special mention of China, to refuse the right to fly the British flag in steamers and vessels of all kinds
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