Copy.

QONFIDENTIAL.

269

Shanghai office of the Inspectorate

General of Customs +

21, Hart Road,

shanghai 23rd September, 1929

Dear Sir Ceail Clementi,

In continuation of my letter of

the 8th ultimo, relating to the proposed Ɛnglo-Chinese

Customs' Convention, I must now inform you that my

anticipations that the Chinese authorities would probably object to article V. (Inland Waters) have unfortunately

proved correct.

A conference was recently held in

Hanking to discuss the question, at which Mr. C.T.Wang,

Fr.T.V.Soong, General Ch'on King-shu (of Canton) and Er. F.T.Chang (Customs' Board) were present, and while they unanimously agreed that the general temas of the instru- ment were entirely acceptable, and paid a tribute to the

friendly attitude of Hongkong, the opinion/expressed,

nevertheless, that it would be inconsistent for the Govern-

ment to depart officially from their declared policy

of ultimately withdrawing from foreign shipping the privi❤ lege of participating in the Coastal trade of China, by formally extending to Hongkong foreign-flag vessels the

right to direct inland Waters trade. wn other words.

political considerations and chinese public opinion render

it inopportune for the Government at this stage, and in

view of the somewhat uncertain political situation again

prevailing, to conoede a special privilege to Hongkong

which they have placed on their agenda for subsequent witiki--

drawal in China proper, Jurveyed solely from the stand-

point of Eanking and Oanton, the stand thus adopted is in-

telligible....

His Exeelisnoy,

panti

Sir Cecil Clezenti, K.C.B.

etc..

etc..

HONGKONG

eto.,

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