Copy
(F 5746/52/10).
SHANGHAI, 7.11.29.
114
"We understand that Customs Agreement relating
to trade from Hongkong to non-Treaty Ports excludes British
Flag. Chinese Government thus secures in Hongkong Treaty
Port Status without conceding Treaty Port rights to British.
Most dangerous concession will form precedent for ultimate
exclusion British flag Coastal Inland Waters elswhere China.
Compensating advantages offered of privileged Factory Duty
treatment to Hongkong factories is paper concession only in
practice useless have you been consulted interview Foreign
Office telegraph result."
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