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besides the somewhat narrowly conceived local interest of
Hongkong were concerned. The Hongkong Government have
in consequence initiated negotiations and carried them, as
it would seem to the point of deadlock before any
opportunity could be afforded for examining the question in
its relation to the policy of His Majesty's Government and
the wider interests concerned. These considerations should,
however, in Mr. Henderson's opinion, be the decisive factor
in arriving at a final decision as to the attitude to be
adopted towards the proposed agreement.
8. The continued existence of the Chinese Maritime Customs
with an effi cient foreign staff and if possible a British
Inspector General is considered to be vital both for Bri ti sh
prestige and for British trade with China generally.
On the
other hand if a British colony were permitted to be co.ne a
base for smuggling into China. this discreditable state of
affairs would not only be detrimental to the colony itself
but would gravely prejudice British relations and British
commercial interests in China. A solution of the problem
by permitting the Chinese Maritime Customs to function in
Hongkong would therefore serve a double purpose. It would
remove a legitimate source of grievance, thus promoting good
relations between His Majesty's Government and the Government
of China, and it would also greatly increase the value to
China of the foreign staffed Customs Administration, thus
providing a safeguard against any radical alteration in the
constitution of that service. An agreement which achieved
the se