256
47.
p)
Customs in Hongkong demands any sacrifice
for which compensation om fairly be
demanded.
Considerations of high policy must rule
where no sacrifice of local interests is
Views of H.M.
49.
Consul-General,
Canton.
a)
involved.
q)
r)
The draft of last July with the total omi§-
sion of Articles 5 and 6 (inland navigation)
Article 10 (privileged factory treatment)
was not in July draft should form the
basis of negotiation.
First of all, amendments in Hongkong
November draft should be communicated to
the Inspector General of Customs and Sir
Miles Lamps on should discuss the question
with him.
Mr. Hosa takes the view that:-
b)
c)
He favours the modification proposed by
the Chinese.
If the Agreement were followed by the exclusion of the British flag from inland waters, the probabļe result would be that Hongkong British-flag steamers on Kwangtung inland waters would transfer to the Chinese flag voluntarily in order to obtain the sam
British privileges as their competitors.
shipping in the district would then be con- fined to sea-going ships and bona fide British river steamers, plying exclusively
between Hongkong and treaty ports.
This situation would not prejudice trans-
port of British goods, which could be
/carried