[This Document is the Property of His Britannia Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

(F.5071/52/10).

To CHINA.

Cypher telegram to Sir M. Lampson, (Peking).

Foreign Office, 18th October 1929. 4 p.m.

No. 355.

37

Hongkong Agreement re Chinese Maritime Customs.

Colonial Office have communicated copy of draft

agreement negotiated between Mr. Maze and Hongkong

government in July last and, subject to any observations

which you may have to offer, I have concurred in Colonial

Office proposal to inform Governor of Hongkong that con-

clusion of agreement on these lines is approved.

On October 4th Mr. Maze telegraphed to Mr.

Stephenson that Chinese government approved generally

the draft agreement but required modification of Article

5 to the extent of limiting Inland Waters privileges to

Hongkong Chinese-flag vessels. Mr. Stephenson wishes to

inform Mr. Maze as soon as possible whether agreement as

thus modified will prove acceptable to His Majesty's

Government.

Extension of inland water privileges to British

flag vessels operating from Hongkong might in case of

abuses similar to those which have so frequently oc-

curred in the past give rise to friction between Hong-

kong government and Chinese Customs with possible serious

reactions on our relations with China and on British

interests in China generally. Proposed limitation to

Chinese flag vessels while not seriously diminishing

benefits

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