2.

264

wo anticipated they wɛuld, offered instead a similar right to

vasnels flying the Chinese flag.

3.

I am not in a position to give me opinion se to

the value of this new Chinese offer to British shipping and

to Hong Kong interests generally, but I should imagine that

the privilege of running their ships under the Chinese flag

direct from Hong Kong to unapened plasas on the inlated

ia

waters of Xuangtung is unlikely to be of such interest to

genuine British shipping as long as we retain our existing

inland water navigation privilego#.

abandoned

-

If and when these are

and we have contemplated their surrender if we

can thereby obtain sanfirmation of our rights to engage

in the coast and river (inter-Treaty fert) trade - the

matter may assume a different aspects though even then Z

am afraid that Mr. Hase greatly under-rates the dangers

and difficulties of running British vessels under the Chinese

flag on the inland wateremys of Chimu.

There is the further consideration whether in view

of the pending negotiation of a new Commercial Treaty with

China the moment is not imeppertuna for a discussion and more

se for an agreement, betwem Hong K_ng and the Chinese Govern

Bent

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