GE
but he demanded a quid pro quo in the interests of legiti-
mate Hong Kong trade with China.
The counter-draft which he accordingly presented
to the Chinese Customs has been rejected by the Nationalist
Government. And negotiations are on foot for approaching
-
a solution on different lines. The one prepared by the new
Governor is that at the expense of the Chinese Maritime
Customs Hong Kong Government should appoint officers to
detect smuggling operations and to act as agents in Hong
Kong for the Chinese Customs. Our latest information (which
is no doubt later and more reliable than Mr. Hobhouse's)
is that Mr.Maye, the Inspector General of the Chinese
ᄃ. Maze.
Maritime Customs, is preparing a visit to Hong Kong from
Nanking in order to resume the negotiations
whether or
how far his Government is ready to negotiate on Sir W. Peel's
lines is not yet apparent.
A "blockade" of Hong Kong by the Chinese
Customs would no doubt seriously inconvenience Hong Kong,
but would be a matter of very great expense to Customs
funds, and would in present circumstances be undertaken
therefore with the greatest reluctance, one may assume. Mr.
Maye has been told by H.M.Minister that it is no contribu-
tion to the negotiations to rattle his sabre in such a
fashion.
sd
G.E.I Gent.
༢} 5