72751/30.

sir,

CONFIDENTIAL.

60

27 May 1930

63

17.5.30.

With reference to your letter No.F.2682/37/10 of

the 16th May, I am directed by Lord Passfield to transmit,·

to be laid before the Secretary of State for Foreign

Affairs, a copy of a telegram from the Governor of Hong

Kong, regarding the proposed Customs Agreement with

China.

2. In view of the fact (reported in Sir E. Lampson's

S anghai telegram o.166 of the 8th May) that the

Inspector General of the Chinese Maritime Customs has

declared that as regards essentials he finds the amended

draft Agreement unacceptable, Lord Fassfield entertains

little hope of further progress along the lines hitherto

fol owed in these negotiations.

3.

He is, therefore, disposed to approve the

Governor's proposal that he should draw out, in consulta-

tion with the Inspector General of the Chinese Maritime

Customs or his representative, a scheme of cooperation

in the prevention of smuggling on the lines indicated

THE UNO'R SICK TARY OF STATE,

FOREIGN OFFICE.

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