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51062847A/29
The views of Sir M. Lampson, Sir C.Clementi,
the Chamber of Commerce in Hong Kong and Shanghai,
the China Association and the Foreign Office, as they
appear from correspondence received in the Coloni al
Office may be summarized as follows:
Sir Miles Lampson. It is most desirable
in the interests of Hong Kong that an agreement
of the kind proposed should be made. "Sooner
or later the questionof smuggling, which in view
of the increased Chinese tariff is rapi dly
becoming a serious problem, will have to be
tackled in Hong Kong's own interest quite
apart from Chinese interests in the matter".
While certain admini strative difficulties would
no doubt be involved in allowing the Chinese
still,
from
Customs to operate in the Colony/from the point
of view of commerce and order, the exi stence of
a Chinese Customs House in Hong Kong appears
likely to benefit the Colony.
There is no chance of the Chinese
accepting Article V in the revi sed draft, in
view of their declared policy of reserving inland
water navigation to vessels flying the Chinese
flag. On the other hand to accept the Chinese
proposal that the privileges under Article V
should be confined to Chinese-flag vessels, would
be to set up a precedent that would weaken our
position in regard to coastal and inland water
navigation rights in our commercial treaty
negotiations. If it becomes necessary to abandon
our present inland water rights it is hoped to
make their surrender a quid pro quo for continued
enjoyment of coasting and river navigation rights.
In