4

view, the position is an intolerable one and if

left unremedied it seems likely to poison the

whole course of our relations. Such a special

situation calls for special remedies nor indeed

is the remedy proposed one without parallel in the

affans

Mr. Haze,

history of international Meetin

in a letter to the London representative of the

Chinese Maritime Customs (in 45 on 62847A/29),

calls attention to a very pertinent extract from

instructions given by Lord Palmerston to Sir

Henry Pottinger in 1841, pointing to the examples

of Antwerp and Hamburg and the Baltic ports proposal.

hypocrisy and

in hich places

In spite of much sheer banditory it is too early to be entirely cynical regarding the ultimate prospects of the

Chinese risorgimento, and Hong Kong will do well to taking every opportunity of establishing and

maintaining the friendliest relations with the

new China. There is much leeway to be made up.

Moreover it will be better to give now with a

that

good grace/which might later be extorted after

much recrimination and ill-will.

(2) As regards Article V, the attached summary of correspondence will speak for itself. There is

no chance of obtaining the privileges sought by the

Hong Kong Government either under this Article or

under Article X. Both are inappropriate in the

present Agreement and further discussion of the

matters concerned should be reserved for the

Commercial Treaty negotiations. It is not too late for Hong Kong to withdraw from the position

which

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