Copy
CONFIDENTIAL.
To
85
Shanghai Office of the Inspectorate General of Customs,
21, Hart Road.
SHANGHAI, 18th October,1929.
Dear Mr. Southorn,
I wish to thank you for your letter of the 2nd
instant, relating to the proposed Customs' Agreement
and informing me that the "exclusion" of Article V.
will be entirely unacceptable to the Hongkong Govern-
ment unless some much more substantial quid pro quo can
be offered than the suggestions outlined in my letter
of the 23rd ultimo adding that "a formal exchange of
notes" offers no advantage over the incorporation of
details in the Agreement, etc.
❤
It is perhaps well to consider that the proposal
to delete Article V. does not mean a total withdrawal
of Inland Waters benefits from Hongkong vessels - on
the contrary, the Chinese Government (as represented
by the Minister of Finance) have registered their will-
ingness to concede the original Inland Waters privileges
to Chinese-flag vessels trading to and from Hongkong
which at present cannot function under Inland Wuters
Regulations; and it seems to me that this unprecedented
arrangement ought not to be regarded merely as a special
concession to Chinese merchants, because such an exten-
sion of shipping facilities would promote the general
commercial interests of the Colony. And in regard to
the question of granting further concessions I am pre-
pared to recommend that all the extra-Treaty privileges
The Hon. W.T. Southorn,
etc.. etc..
HONGKONG.
etc..
now..