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done in respect of goods exported to China by Kowloon
Canton Railway. This is perhaps desirable but it
could certainly not be permitted without guarantees that
the commissioner of Customs for Kowloon should remain
British.
Returning to Article 18 I learnt on April 23rd
from Commissioner of Customs Kowloon that he had in
February received circular order from Inspector General
of Customs as follows: "native products when sent from
one treaty port to another treaty port via foreign ports
are to be granted duty paid certificate privileges no
matter how often the goods may have been landed and re-
loaded on the way provided only that no re-packing has
taken place." He confirms this as definite order from
the National government but has not published it. This
ruling appears prima facie to satisfy intention of
Article 18 while avoiding possible difficulties which
Chinese customs supervision in Ilongkong might involve.
I have consulted Chamber of Commerce on this new develop
ment and await their reply. It is probable that other
sections of draft treaty may be affected by local views.
It is clearly essential that Hongkong shall accede
to whatever treaty is concluded and I consider the only
safe course in a matter of such gravity is full verbal
discussion. I strongly urge that you should visit Hong-
kong for this purpose before initiating discussions with
Nanking. The short delay would in my opinion be an ad-
vantage in view of the obscure political situation in
China. Ends.
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