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course desirable to secure as favourable terms as possible,
it does not appear from the corespondence that the grant
of these privileges would involve Hongkong in any sacrifice
for which compensations could fairly be demanded. In any
case there can, in Mr. Henderson's opinion, be no question
that the purely local point of view must yield to considerations
of high policy especially when, as in the present case, no
sacrifice of local interests is involved. on the contrary
it is the colony of Hongkong that would ultimately derive the
greatest benefit from the proposed agreement, for friendly
relations with China would not only conduce to the commercial
prosperity of Hongkong but would be the surest safeguard against
Nationalist propaganda which might even assume the character
of an agitation for the return of the Colony itself to the
Sovereignty of China.
11. Mr. Henderson would be glad if Lord Passfield would
request Sir C. Clementi to reconsider the whole question of
the proposed agreement in the light of these observations.
He further suggests that Sir C. Clementi be instructed by
telegraph to communicate the revised draft of the agreement to
the Inspector-General of Customs in order that his views may
be ascertained on the amendments introduced in Hongkong and
particularly on the deletion of Article II and the redraft of
Article IX.
12. I am to enclose the draft of a telegram which Mr.
Henderson proposes to send to Sir M. Lampson and to request
that......
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