250
Conference to Mr. Maze.
It prevented me from responding to the
hints of Colonel Hayley-Bell and the Commissioner of Customs
at Canton that they would appreciate information as to what had
passed.
11. Although Sir Cecil Clementi definitely negatived a motion
to discuss an alternative scheme for the Colonial authorities to
undertake to furnish to the Chinese Customs (at considerable
expense) all the information, they could reasonably hope to
collect for themselves if they were privileged to function in
Hongkong territories and to facilitate preventive measures, on
the grounds that the negotiations had already proceded too far
on other lines and that the risks of failure to cope adequately
with smugglers could not be readily undertaken since disappoint-
ments would lead to friction, it seemed to me that some of those
who attended the Conference found attractions in the scheme,
which had been propounded by Mr. J.D. Lloyd, the Superintendent
of the Imports and Exports Office of the Colony. Should the
Chinese Government refuse to consider further the Draft Agreement
and threaten to break off the discussions, it is possible that
more may be heard of Mr. Lloyd's scheme.
12.
I venture to suggest that mere agreement between the
Nanking Government and the Chinese Maritime Customs on one hand
and Hongkong on the other will not necessarily conclude the
matter. There is a third important party to be considered, and
that is the Provincial Government of Kwang tung.
So far as my
information goes, the Canton authorities would oppose the con-
clusion of an Agreement on the lines so far suggested either by
Nanking or Hongkong. My authority for this suggestion is the
Chinese Superintendent of Customs at Canton, whose remarks have
been related to me by the Commissioner of Customs. He is report-
ed to have pointed out that Canton merchants would be jealous of
the