CONFIDENTIAL.
*
Enclosure No.1.
COPY.
34
Shanghai Office of the
Inspectorate General of Customs,
21 Hart Road.
SHANGHAI....23rd September, 1929.
Dear Sir Cecil Clementi,
In continuation of my letter of the 8th ultimo, relating to the proposed Anglo-Chinese Customs' Convention,
I must now inform you that my anticipations that the Chinese Authorities would probably object to Article V (Inland Waters) have unfortunately proved correct.
A conference was recently held in Nanking to discuss the question, at which Mr. C.T. Wang, Mr. T.V. Soong, General Ch'en Ming-shu (of Canton) and Mr. F.Y. Chang (Customs'' Board) were present, and while they unanimously agreed that the general terms of the instrument were entirely acceptable,
and paid a tribute to the friendly attitude of Hong Kong, the c opinion was expressed, nevertheless, that it would be
inconsistent for the Government to depart officially from their declared policy of ultimately withdrawing from foreign shipping the privilege of participating in the Coastal-trade of China, by formally extending to Hong Kong foreign-flag vessels the right to direct Inland Waters trade. In other
words, political considerations and Chinese public opinion render it inopportune for the Government at this stage, and in view of the somewhat uncertain political situation again prevailing, to concede a special privilege to Hong Kong which they have placed on their agenda for subsequent withdrawal in China proper. Surveyed solely from the standpoint of Nanking and Canton, the stand thus adopted is intelligible and logical, however disappointing it may be to us.
Sir. Cecil Clementi, K.C.M.G., etc., etc.
In