30
come
limiting inland waters privileges to Hong Kong Chinese flag vessels. The most that we are prepared to accept in existing circumstances would be the limitation of
Article 5 to apply only to the provinces of Kwangtung and Kwangsi and not to all China, as would have been the
case had the wording of the original draft been adhered to
6. I might add that it has been suggested in some quarters that the offer to grant to steam or motor vessels flying the Chinese flag the right of direct trade between Hong Kong and non-open ports in China is nothing more than an intelligent anticipation of a development which is bound to sever as soon as China is governed
on reasonably modern lines. The view taken is that the advantage of this concession to Chinese shipping is so self evident that a modern Government could not
withstand the claims of its own nationals for the grant of what would be considered an obvious right. The trade by junk exists today and it seems hardly conceivable that a junk which installed an auxiliary motor would, on that account, be debarred from the trade, and the extension from motor junk to launch and from launch to River-steamer might be slow but would seem to be inevitable as conditions in China become modernized. 7. Sir Miles Lamps on very kindly instructed Mr. G.S. Moss, His Majesty's Consul-General at Canton, to visit this Colony, in order to consult with me concerning the draft agreement, and two conferences were held by me at Government House for this purpose, at both of which Mr. Moss was present. The first took place on the 9th of November and lasted from 9.30 a.m.
The second took place on the 14th of
to 1 p.m.
n
November
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