[This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.

e.]

116

F.5746/52/10.)

To CHINA.

Code telegram to Sir M. Lempson, (Peking),

Foreign Office, 12th November 1929, 5.25 p.m. No. 396. (R).

Following is text of telegram referred to in my

immediately preceding telegram:

We understand that Customs Agreement relating to trade from Hongkong to non-Treaty porte excludes British

flag. Chinese government thus secures in Hongkong

Treaty Port status without conceding Treaty Port rights

to British. Most dangerous concession will form pre-

cedent for ultimate exclusion British flag Coastal Inland

Waters elsewhere China, Compensating advantages offered

of privileged Factory Duty treatment to Hongkong factor.

100 is paper concession only in practice useless have

you been consulted interview Foreign Office telegraph

result,

$

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