Mr. Maze's letter of Sept.23.1929 (p.8 în 5 Ÿ).

(p.8 in SY)

7.0, views on Inland waters

olause

F.0.tel No.355 of Oot.18 (p.9 BY)

Dr. C.T. Wang, Oot. 21. (p.10 in 5 Y).

237

28.

Mr. Mase also offered to allow Chinese produce,

transiting Hongkong from one Treaty Port to another,

to be trans-shipped in Hongkong into junks or trains

without forfeiture of status, and not come as now

under the new National Import Tariff. In reporting

Mr. Mase's offer to the .0. the Legation said it

was unlikely to be of much interest to genuine

British shipping as long as we retained our existing

inland water navigation privileges. It might be as well pending negotiation of a commercial treaty, to

omit all reference to the navigation of Chinese

territorial waters by Hongkong steamers in the

Agreement, The whole question of the right to par- ticipate in the coastal and inland water trade of

China was really one for the shipping companies to

decide.

27. On October 18, the Foreign Office, having heard

that Mr. Maze had made the above offer, to which the

Chinese Customs Commissioner in London was pressing

for a reply, wired stating their view that the ex- tension to British-flag vessels from Hongkong of in-

land water privileges might give rise to friction.

and that the limitation to Chinese-flag ships would

avert this danger, while not seriously diminishing

the benefits to Hongkong. The Minister replied to

this telegram, saying that he was asking the Consul-

General at Canton to consult with the Governor on

the point at issue. Meanwhile, Dr. C.T. Wang did

not help matters by sending a rather offensive message, saying that if the Chinese amendment were not accepted, the consequences might be unpleasant.

28.

Mr. Moss sent a preliminary reply to the

/Legation

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