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Copy of Telegram received from the Hongkong Chamber
of Commerce, 28th December, 1929.
00--
Re your telegram of 4th Customs agreement we agree
to your views generally for support provided that reasonable quid pro quo obtained for Hongkong (stop) We do not think
non-acceptance by China would lead to threatened preventative
measures mentioned under reason 4 nor do we agree that ad-
vantage gained by non-inclusion of British flag outweighs any
precedent might be created (stop) Agreement has now been
limited to Provinces Kwantung and Awangsi which render most
favoured nation clause argument inapplicable elsewhere (stop) Governor of Hongkong has telegraphed Sir Miles Lampson remind-
ing him that the proposal emanated from Inspector-General of
Customs under order of the Chinese Government on the basis of
1921 draft Harris Customs agreement which covered in principle
present Article No. 5 and while ready to assist China prevent
smuggling in view of exceptional concession(s) offered and obligation(s) to be undertaken by Hongkong Government is not
prepared to delete Articles 5 and 10 (stop) If China is not
prepared to accept agreement present form Hongkong Government
will put forward constructive proposals on different lines
which would still assist prevention of smuggling and is willing
to discuss it with Chinese Maritime Customs (stop) Both
Chinese and General Chamber of Commerce and China Association
Committees have supported Governor throughout negotiations
(stop) For your information confidential representative of
General and Chinese Chamber of Commerce suggested following
amendment of Article No. 5 after words "or not" in line 3
insert "on conditions not less favourable than those applicable
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