CORY.

CONFIDENTIAL.

98

hanghai Office of the Inspectorate General of Customs

21, Hart Road,

Shanghai.

23rd September 1929.

Dear Mr. Stephenson,

With reference to my letters dated 8th July

and 2nd ultimo, on the subject of the proposed

Anglo-Chinese Customs' Agreement, I append hereto

copies of letters which I am sending to Lampson

and Clementi in this connexion. You will observe

therefrom that the Chinese Government, as 1 antici-

pated, have declined to agree to Article V, and I

consider that their attitude in relation thereto

This

is perfectly logical. I have been asked to endeavour

to smooth over the difficulty, and my proposal is to

restrict the extension of Inland Waters privileges

to Hongkong vessels flying the Chinese flag.

confers unquestionable advantages upon a section

of Hongkong shipping, and I trust that Clementi will

accept the compromise. In my opinion, the flongkong

Government in their own interest ought to accept

the revised terms, and extend reasonable facilities

to China in order to enable her to protect that

part of her Revenue which the proximity of the free-

port of Hongkong seriously endangers.

J. W. Stephenson, Esquire,

London.

Yours truly,

(Sd.) F.W.Maze.

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