257

48.

a)

a)

f)

g)

carried direct from Hongkong to more river

ports than formerly.

It would clear up some of the difficulties

about pseudo-British vessels flying the

British flag.

The Chinese modification will not affect

the system of issuing inland waters certifi-

cates to British-flag vessels at open ports

in the two Kwang provinces for trading to

non-open ports, and Hongkong British-flag

vessels will still be able to obtain such

certificates on application at Treaty Ports.

The modification will therefore not ser-

iously affect the present status of British-

flag vessels, while their future on Chinese

rivers depends on the issue of the commercial

treaty negotiations which may entail cancel-

lation of the existing West River Regula-

tions, a question which is outside the scope

of the Hongkong agreement.

Any agreement between Hongkong and the

Nanking Government, without the consent of

Canton, may not be conclusive, as it may

profit the national exchequer through the

Customs at the expense of the provincial

treasury.

h)

The immediate conclusion of an agreement

may not be quite so serious an issue as Mr.

Maze wishes us to believe (a view from which

the Foreign Office dissent).

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