218

500m 62847A/29

Ditto.

(n)

Obtaining from the Hong Kong

Government in

return for these advantages the right to

function freely in Hong Kong waters in

examining junks, launches, etc. and their

cargoes, levying and collecting the duties

due to the Chinese Government, in making

legitimate seizures, and arranging for the

restoration to China of the right to re-

establish certain CustomsStations in British

waters

The Hong Kong General Chamber of Commerce

and the HongKong Branch of the China Association, who

were consulted by the Governor, held the view that

an agreement on the lines proposed would be of

considerable value to Hong Kong. A committee formed

to ascertain the views of Chinese merchants reported

as follows:- "Generally this agreement may be

regarded as favourable to both countries, because on

the one hand China will derive great benefit from

the previous decision to prevent smuggling, and on

the other hand Hong Kong will remain a distributing

centre in South China".

On the 23rd September Mr. Maze informed

Sir C. Clementi that a recent conference of the Chinese

authorities at Nanking, while agreeing that the

general terms of the instrument were entirely acceptable,

expressed the opinion that it would be inconsistent for

the Governments to depart officially from their

declared policy of ultimately withdrawing from foreign

shipping the privilege of participating in the

Coastal trade of China, by formally extending to

Hong Kong

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