59

Copy of confidential letter to Mr. J.W. Stephenson, London,

from Mr F.W. Maze, dated Shanghai, 16th April, 1930.

Dear Mr. Stephenson,

I have received the Annual Report of

the China Association, and would be glad if you will thank

Stanley Dodwell for his reference to the Customs. I also

read with interest his further remarks concerning the pro-

posed Customs Agreement with Hongkong. The opinions cited

as having been expressed by Shanghai in this connection

caused me no surprise (vide my confidential letter dated

18th February last). (1) We are told that if the

negotiations fall through "there would be no reaction

"detrimental to general British interests in China": how

a "Customs blockade", engendering 111-will all round and

probably antagonising Canton, could fail to seriously

damage, not to say strangle, Hongkong's local trade, and

thus impede the circulation of British goods, I fail utterly

to comprehend! (2) "The modification of Clause 5 would

"react detrimentally on British interests in China by

"weakening the position in regard to Coastal and Inland

"Waters rights in our present commercial Treaty negotiations.

I cannot really subscribe to such fallacious reasoning, and

I /

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