5.
92
of renewed discussions and intimated that
if no arrangement were come to, the
Chinese might be compelled to tighten
the cordon round Hongkong very consider-
ably. The Hongkong Government proceeded
to re-model the 1918 draft outting
out the salt taxation clause amongst other
changes which was then given to Mr.
Maze to show to the members of the Chinese
Government. The latter found they could
not, in view of their declared policy,
accept the inland navigation clause, al-
lowing British ships registered with the
Customs to trade between Hongkong and non-
treaty ports, and Mr.Maze offered instead
an understanding to be attached to the
agreement, allowing ships flying the
Chinese flag so to trade to non-treaty
ports. Hongkong found themselves emally
unable to accept this alteration, and set
about amending the agreement once more.
The new draft of November 1929, limited
the inland navigation rights of British
ships to the coasts of Kwangtung and
Kwangsi, but, as compensation for this
alight concession, the salt prevention
clauses were out out altogether (leaving
salt to come in with other commodities
under a general restriction clause) and
an entirely new article was introduced
granting privileged factory treatment
to