Copy.
SECRET.
Copy to Peking No.40.
31
61124/29 General
GOVERNMENT HOUSE,
87
42957
HONG KONG, 14th August, 1929.
My Lord,
With reference to my secret despatch dated the 1st August, on the subject of the proposed Customs Agreement between Hong Kong and China, and with reference to paragraph 3 of my secret despatch dated the 8th August, relating to the Chinese draft of a treaty of amity, commerce and navigation between Great Britain and China, I have the honour to suggest that any treaty concluded between Great Britain and China should contain a saving of any special customs agreements which may then exist or thereafter be concluded between Hong Kong and China, or between Great Britain, on behalf of Hong Kong, and
China.
2.
It is conceivable that such a provision might
be objected to on the ground of possible embarrassment to
China in connexion with most favoured nation clauses in
treaties between China and powers other than Great Britain. I submit, however, that any such customs agreement
relating to Hong Kong would by the nature of its terms
be so particular as to be incapable of application to
other nations except in a very few cases, such as that of
Macao, where the Chinese authorities themselves would
probably wish to make similar arrangements.
3. It would be possible to meet the point by
using the reciprocal form of most favoured nation
THE RIGHT HONOURABLE
LORD PASSFIELD,
&c.,
&c.,
હું
clause