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to all it contains: to add more will render chances even

more slender yet it is hardly likely that Hongkong will

wish to weaken present text; to strengthen it is unwise.

If therefore for reasons given in second paragraph

of our telegram substance of Article 18 is already

covered by existing instructions to customs at Kowloon

I suggest we forthwith cut it out of the draft and that

I be authorized to go ahead at once in accordance with

discretion already given me in your despatch No. 295.

I much doubt whether in any case Chinese would agree to

accept Article 18.

I shall of course keep in close touch with Shanghai

Chamber of Commerce throughout negotiations; my idea

being to initial them, then get them handed over for ex-

pert discussion between nominees of both sides: when

ground has thus been cleared I would return and take up

outstanding points myself.

If presentation of draft, at my discretion, is held

up I am quite clear in my own mind it will be a mistake.

From discussion today with Japanese Chargé d'Affaires

it was evident he regarded immediate presentation as a

wise move.

Addressed to Foreign Office No. 399 May 3rd; re-

peated to Mr. Newton No. 129 and Hongkong.

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