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smuggling operations and to act as agents in Hong Kong for

Our latest information, which is possibly

the Customs.

more recent then yours, is that Mr. Maze, the Inspector-

General of the Chinese Maritime Customs, is preparing a visit

to Hong Kong from Nanking in order to resume the negotiations,

but we do not know as yet whether, or how far, his Government

is ready to negotiate on the lines suggested by Sir William

Peel. I think both the Colonial Office and the local

Government are fully aware of the importance to Hong Kong

and to British trade generally of good relations with China;

but such relations are not necessarily to be secured by

yielding to every demand which the Nanking Government may

make.

un

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