[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]
350
(F.4239/37/10.)
TO CHINA.
Cypher telegram to Sir M. Lampson (Peking).
Foreign Office.
No. 242.
21st August, 1930. 5.15 p.m.
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enel in (11)
Your telegram No. 483 (of August 5th: Hongkong
Customs Agreement).
I gather that you now fear that there is imminent
danger of failure of negotiations in regard to prevention
of smuggling from Hongkong and that this might lead to a
serious crisis. In these circumstances it seems desir-
able that an early decision should be reached in regard
to the principles which should guide His Majesty's Govern-
ment in settlement of this question. This has hitherto
been impossible owing to the conflicting nature of the
views expressed in China.
2. The first question for consideration is whether
a failure to come to a satisfactory agreement for the
prevention of smuggling is likely to have an adverse
effect (a) on the future of Hongkong, (b) on British
interests generally in China, Would such a failure
precipitate an agitation for the recovery of the leased
territories? The lease originated during a period of
foreign aggression on China and, if as Section 10 of
Mr. Wright's published compendium appears to show, the
extension of Hongkong's territory in 1898 has made it
Se 12 impossible for China to protect her revenue might not see. 13121
this place a formidable weapon in the hands of nationalist
agitators?