by the Customs authorities of Hong Kong, and provided "that the goods can be identified and that no "repacking has taken place”.

That draft of ours was based to some extent on a Customs regulation which is already in force and a copy of which was communicated by ir. Johnston to this Government. We want, if possible, to secure an understanding on these lines. When the matter was originally under discussion between Sir Miles Lampson and the British Foreign Office, it was suggested that an article such as this might form part of a special Convention between Hong Kong and China and not be included as the Main Anglo-Chinese Treaty.

The second matter which I wish to refer to now is clause 15 of the counterdraft of a treaty of amity, commerce and navigation between China and Great Britain recently communicated by Ir. C.T.Vang to Siriles Lampson. It reads :-

"The High Contracting Parties, in accordance "with general international practice, reserve "the right of inland and coastwise navigation "in their respective territories to their

respective nationals".

That would strike a very heavy blow at this Colony,

if embodied in a Treaty and Ir. Haze asked me yesterday

whether I could put into express words the wishes of the Hong Kong Government in the matter.

Τ

therefore

3

me

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