61127/299eut
(31)
(32)
1
Acceptance of grant to Chinese flag vessels, if
refused to the British flag, is strongly opposed by
merchants here, Chinese and British alike. They
consider such a concession an entirely inadequate quid
pro quo for extraordinary concession which is granted
to China by the agreement.
Some merchants consider further that grant to
Chinese flag vessels is a concession which public
opinion in China will force the Chinese Government to
concede altogether apart from the agreement.
I am very strongly of the opinion that we ought
not to give way on this question and rather than give
way I should prefer to abandon the whole of the present
agreement. I invite your attention to my secret
despatch of 14th August 1929 on the subject of the most
favoured nation clause.. As regards the latest
drafts of the agreement see my telegram 14th November
No. 14 and my despatch 20th November Secret. I should
be glad if last mentioned despatch may be fully
considered before further action is taken.
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