398
X(17)
object to his Local Commissioner discussing our
proposals in a friendly manner provided that
the Government of Hong Kong furnish at the same
time a copy of the draft to Inspector General
of Customs to enable him to discuss it with
Chinese Government so as to find out if it is
acceptable and whether it is likely to serve as
basis of further discussion. This connoted
right to dictate principles and indicated little
real desire to co-operate on the part of
Chinese Government. However His Majesty's
Minister informed me in a telegram of 26th June
that Maze had agreed to authorise Local Commissiore
to collaborate informally with Lloyd in
endeavouring to
formulate a scheme which would
be acceptable to both parties on the under-
standing that anything agread to by the
Commissioner is not regarded as binding Maze. I
discussed position personally with Local
Commissioner and Lloyd and requested them to
commence preliminary discussione. This they did
but Comissioner's instructions do not seem to
show much desire for real settlement on the lines
which I proposed and I have invoked His Majesty's
Minister's acsistance in the telegram quoted in '
my immediately following telegram
This indicates position. I hope
still that matter may take more favourable turn
with His Majesty's Minister's assistance.
With