253
44.
Shanghai Chan- ber of Commerce's
view.
F. O.'s
views.
46.
regard to the trandt trade are considerable.
The Shanghai Chamber of Commerce view is that:-
a) The exclusion of the British flag from Article
5 means that the Chinese Government will
secure in Hongkong "treaty port" status, with-
out conceding treaty port rights to the
British.
b) This proposed modification will form a pre-
cedent for exclusion of the British flag from
Chinese coastal waters elsewhere.
c) The total omission of Article 5 might be con-
sidered tantamount to an admission that the
Chinese Government had the right to function
in Hongkong on its own terms.
a) The functioning of the Customs at Hongkong
would to all intents and purposes give the
Colony a Treaty Port status which should auto-
matically include inland navigation rights.
e) Privileged factory treatment is a paper con-
cession only, worthless in practice.
f) There would be no reaction detrimental to Bri-
tish interests in China should China refuse to
accept the Hongkong draft and Hongkong refuse
to alter it.
47. The views of the Hongkong Chamber are apparently
in line with those of the Hongkong Government.
48. The Foreign Office takes the view that:--
a) The Governor of Hongkong ignores the wider
implications of the agreement.
b) The functioning of the Chinese Customs at
Hongkong would serve the double purpose of
/removing