59.

146

made by the Executive Council) and subsequently

placed before the Chinese Government who decided

they could only grant the inland water navigation

privileges under Article b to Chinese-flag ships,

and that only in a separate exchange of notes.

Mr. Maze was also instructed to offer that, as

regards Chinese produce from a Chinese treaty port

trans-shipped in Hongkong en route to another

Treaty Port, the privileges as to non-forfeiture

of status should be extended also to the extent of

permitting such goods to be trans-shipped in

Hongkong into junks or railway trains, which would

stimulate Junk traffic, as it would enable arrange-

ments to be made by which Chinese goods trans-

shipped at Hongkong and conveyed thence by junk

should not as now come under the new National

Import Tariff. These offers did not meet with a

favourable response from Hongkong. The Government

said it would await the offer of further concessions

from Mr. Mase.

65. The Hongkong Government did not provide us

with minutes of the conferences at which they then

proceeded to revise the July draft again, but the

actual results of the revision as they appear in

the November draft (also attached) are shown below.

66. The draft was altered to limit, as in the

original Harris draft, the inland navigation

privileges under Article 5 to non-open ports on the coasts of lwangtung and Lwangmi, The clause

in Article 6 dealing with free carriage of Chinese

mails, to non-open ports, inserted by special

/request

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