P 6570/52/10

Sir,

18

PORRIGE OPPICS.

S.. 1.

28th December, 1929.

49

I am directed by Mr.Secretary Henderson to refer

to your letter C.R.T.3021/29 of the 11th December and to

30 your previous letter C.R.T.3021/29 or the 13th November

addressed to the Colonial office, in which are raised

the questions of the treaty obligations of Hongkong and

China respectively that may be involved in article V of

the proposed agreement relative to the Chinese Customs

Administration.

2.

Kr.Henderson is advised that under article V

of the proposed agreement the government of Hongkong appear

not to grant any privileges at all but only to receive them

so that it becomes unnecessary to consider Hongkong's

obligations under the most-favoured-nation clauses of

treaties concluded with Japan or other Powers. The whole

of the past prohibition of trading between Hongkong and the

Chinese inland waters has come from China. It is the

Chinese who now propose to remove the ban and the treaty

obligations of Hongkong cannot offer any obstacle to the

removal of the ban either in respect of Chinese vessels

only or in respect of British as well as Chinese vessels.

3. As regards the treaty obligations of China

in respect of any privileges which she may grant by article V,

The Secretary

to the Board of Trade.

it

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