155

NANKING.

January 9th, 1930.

Mr. Law, of the Customs, called this morning, and

we had a telk on general customs matters, he stating that he

had called as the representative of Mr. Haze,

There were only two items that came up of real interest;

the first, the question of the Hong Kong Cuetons

greement.

18 regards that, Mr. Law took the line that Hong Kong had

been extremely reasonable in agreeing to the idea of the

conversion of the Colony into practically a Treaty Port

so far as custome mattere were concerned, as contrasted

with the Chinese attitude, which he seemed to think Father

unreasonable. On the assumption that what I caid might pert

colate through to Mr. Maze, I said that it seemed to me

entirely a question for one ong to judge on its

merits.

I could quito understand that the National Cove:nment might

be unilling to throw open the inland watere of the two

outhem Provinces to navigation by British-flag vessels

that was in harmony with their declared poliq regarding

inland water mavigation but it was equally dear that the

Chinese con.d not expect us to agree to any arrangement

limiting that right to one on: Chinese-flag vessels, The

conclusion I had therefore come to my eelf was that it

would be far better to drop any reference to this particular

matter if the Agreement wont any furthe.. It really came

to this: ae the proposed greement of sufficient advan-

tage to Hong Kong from the general point of view to make

it worth her while allowing the Customs to function in the

Colony?, or was it a matter where the advantage was co

small that it became a question of the Colony receiving

come special advantage in exchange for giving Ching an

agreement which she apparently wanted?

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