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China in repressing the smuggling that took place through
Hong Kong; and I earnestly hope that it will be possible
to come to an agreement on the lines of what we call
Lloyd's Scheme.
The objections put up informally by China strike
me as very puerile, and they simply confirm one's view
that they are after much more than a mere Customs arrange-
ment. Maze has vacillated considerably, though I have
no doubt that this has been due to the fact that Soong
has stated that he will not look at any other scheme.
Now we are prepared to put up a scheme which we
think will achieve what is desired, and which we think
can be worked with the full co-operation of both parties.
This is the official view here and, though I particularly
do not want this mentioned to Maze, is the personal view
of the Commissioner of Customs here Osborne who
thinks that, with some system of dual control, we can
achieve all that is necessary. Anyhow, we are
prepared to do our best to make it a success, and are
making a very useful suggestion to China to deal with the smuggling question. It seems to me that, if they
simply turn it down and wave the big stick of a
big cordon round Hong Kong, they have forfeited any
sympathy or consideration which they might otherwise
receive. At all events, they cannot, with any shade
of justification, refuse even to consider such
proposals. I hope, therefore, that you will be able
to support me in this attitude.
The whole position is
very troublesome, for of course their demands are based,
not