47
7. The proposals and counter-proposals will still
have to be discussed in detail, but it seems likely that
a Preliminary Agreement between Sir Cecil Clementi and Mr.
F. W. Maze will eventually be reached on these general
lines and submitted in due course for ratification.
8. The great difficulty for Hongkong appeared to be
the formal admission of a foreign service to administrative
control in British territory, with all that would imply
in derogation of sole authority and manifold inconveniences.
Again, if the Agreement should be ratified, it would mean
considerable expense in increasing staff, etc., and great
difficulties in the exaction of penalties which should not
be excessively severe but should at the same time be suffi-
ciently deterrent. On the other hand the advantages which
should accrue to Hongkong in developing its entrepôt trade
with China through the virtual acquisition of the status
of a Chinese treaty-port as regards its trade with China,
the extension to Hongkong steamers of Inland Waters Steam
Navigation privileges, the acquisition of bonded warehouse privileges for cargoes destined for China, etc., tend to
the belief that a considerable balance of advantage would
be in favour of Hongkong. Such indeed seemed to be the
opinion of the members of the Committee of the Hongkong
British Chamber of Commerce with whom I discussed the
question.
9. Mr. Maze's proposals are necessarily subject to
the approval and the confirmation of the Chinese Government. They appear to be generous and well-conceived in the mutual
interests of China and Hongkong and, if accepted by the
Colonial Government, it is to be hoped that they will be
duly ratified.
10./