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SECTION 3.
42.
Hongkong Govern-
ment.
Summary of Arguments.
44. The Hongkong Government takes the view that:-
a) It is the Chinese who have all along
pressed for the agreement.
b) To allow the Chinese Customs to function
freely at Hongkong is to grant an extra-
ordinary privilege, fraught with considerable
risk to the administration of the Colony.
c) Exceptional concessions must be given in
return, to make it a good bargain.
d) It would be a good thing to conclude an
agreement of this kind to remove any grie-
vance on the score of smuggling, which cer-
tainly exists, but this fact alone is not
sufficient reason for making an agreement.
e) Rights of inland navigation for British-
flag vessels from Hongkong to non-open ports
in the two Kwang provinces are essential.
f) The British and Chinese merchants in Hong-
kong are alike opposed to deletion or modi-
fication of the disputed Article 5, owing
to the risks run by vessels under the
Chinese flag. The offer of inland naviga-
tion rights to Chinese-flag vessels only is
considered as merely an intelligent anti-
cipation of an event that is bound to come,
and therefore no real concession.
g) The salt clauses are unnecessary, as all
that China is concerned with is that Hong-
kong should promise to take steps to pre-
vent the illicit entry of salt into China.
/n)
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