3
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36
some such Agreement as the one now under discussion, even
Chinese-flag vessels, coming from Hong Kong, would be
debarred from such privileged trade.
Seeing that the
Chinese Coastal-trade is in necessaries of life and industry,
it follows that any impediment would be serious. And while
no reasonable person can properly question China's right to
protect and encourage her own shipping, it must be admitted
that for years to come the supply of purely Chinese-owned
vessels will not equal the demand, and for this reason a
transfer of flag on the part of the foreign Companies seems
to me to be inevitable. And if such a course would be
likely to prove profitable in China, it would doubtless be
equally advantageous to foreign interests in Hong Kong.
Furthermore, in regard to Chinese produce from a Chinese
Treaty-port transhipped in Hong Kong en route to another
Treaty-port, I am now in a position to extend this provis- ional concession to the extent of permitting such goods to
be transhipped in Hong Kong into junks or railway trains
without forfeiture of status. This would prove a very considerable stimulus to junk traffic to and from Hong Kong,
as it would enable me to make arrangements by which Chinese goods transhipped at Hong Kong and conveyed thence by junk
shall not, as now come under the new National Import
Tariff.
I trust that Your Excellency will permit me to hope that the Chinese Government's attitude in connection with
Article V., as described above, will not close the door to
further discussion ? In the general interests of the Colony and of China,
it seems to me that
especially South China
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a revision of the existing Maritime Customs system in the so- called "Kowloon" District is absolutely essential. And if we study the British Government's attitude in the past, it is clear, I believe, that there has always been a disposition on
their