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treatment of foreign shipping within the waters of
the Colony.
Secondly, as regards the Chinese
Government, so far as the Board were aware no
difficulty would arise from the grant of privileges
to Chinese vessels, but presumably if they did extend
such privileges to British vessels, they would have to
extend similar privileges to flags of other foreign
powers entitled under existing treaties with China to
most-favoured-nation treatment for their shipping.
To this the Foreign Office have replied
that as under Article V. Hong Kong would receive
privileges andhot give them no question of her
treaty obligations arose. As regards China, if the
Chinese Government granted the proposed privileges to
British ships they would be bound to extend similar
treatment to any country with the right to most-
favoured-nation treatment, whether that country could
give a quid pro quo or not, but the benefits which
would so require to be granted would be strictly
limited to trade between Hong Kong and the Chinese
to
inland waters and vessels registered for Chinese
inland water navigation.
February 1930.
J.M.M.