30.
117
Shanghai Chamber's
views.
(p.15 in 5Y).
(p.18 in 5Y)
stage, having heard of the negotiations from their
Hongkong colleagues, began to show an interest
in the question. They put themselves on record
in a telegram to the China Association in London
expressing the view that the exclusion of the British
flag from Article 5 of the agreement meant that the
Chinese Government would secure in Hongkong "treaty
port" status, without conceding "treaty port" righta
to the British, and that the modification would form
a precedent for the exclusion of the British flag
from coastal waters elsewhere in China.
The compen-
sating advantage of the offer of privileged factory
treatment to Hongkong (which as a matter of fact was
a concession Hongkong was itself proposing to suggest
as a quid pro quo for the Chinese amendment) was &
paper concession only, and useless in practice.
November Conference 30. The Governor telegraphed that as the result in Hongkong drait amended.
of a further conference on November 14, attended
by H.M. Consul-General, Canton, it had been decided
to make extensive amendments in the draft Agreement,
but that British and Chinese merchants alike were
opposed to the deletion or modification of article
5, limiting inland water privileges to Chinese-flag
vessels, but were ready to limit them to the two
Kwang provinces. The Governor said he agreed with
these views.
Foochow despatch No. 50 of Nov. 5. 1929.
(p.20 in 5Y)
Smuggling round Toochow and Amoy.
31. H.M. Consul at Foochow drew attention to
instances of the detriment done to legitimate
trade by smuggling on the coasts of Fukien, owing
to the inefficacy of the Customs preventive
service. This was corroborated by H.M. Consul
at Amoy, with particular reference to the
/cotton