7
The Government of Hong Kong, however,
stood out for better terms in return for the
extraordinary concession to a foreign Government of allowing their customs machinery to operate in British waters. The Colony expressed a strong disinclination to letting loose the Chinese Customs Officers into Hong Kong, knowing as they did the
undesirable manners and methods of Chinese officials.
The further concessions accordingly which Hong Kong demanded were not acceptable to the Nanking Government. The Inspector General of the Chinese
Maritime Customs, Mr. Maze, has since been sabre- rattling (no doubt on instructions from his Govern- ment) with threats of a customs blockade of Hong Kong, but His Majesty's Minister has very properly warned him that negotiations cannot proceed on that
it is of comfo Threat to be borne in
basis. Thanh
mind by M.K)
Such was the situation which awaited the
new Governor, Sir William Peel, at the beginning of
this year.
had fully discussed the position before he left
England. He has reached the conclusion that
further progress on the lines of the draft Agreement is not possible, and in Ho.59 on this file he gives
his own alternative ideas on the basis that he is
anxious to assist China in the prevention of Smuggling, and that with genuine co-operation with the Chinese authorities his alternative scheme may
be made a success. This alternative proposal is in brief that the Hong Kong Government should itself
set up the machinery to provide the Chinese Maritime Customs with the information which they contemplated obtaining themselves by direct functioning in Hong Kong The cost of this extra machinery of the Hong Kong
He had seen all the papers here and
Customs