J. S. & S. LTD.

3.

19/6/1930.

519

Shanghai May 9th

"There have been rumours lately of the "abolition of the coast trade duty in the near futurs. "In such an event, if there is no agreement between. "Hong Kong and the Chinese Customs we shall not be "permitted to carry, goods for Hong Kong and China "ports in the same bottom.

Foreign Commercial opinion in Hong Kong and Shanghai, which was at first opposed to the idea of this agreement - at any rate without a very substantial quid pro quo -, is socording to our last news from China gradually coming round to see the need for

it and the Hong Kong Chinese, who are possibly interested in

smuggling and also regarded Article V as essential, are now willing, if need be, to do without it. Only the Hong Kong

Government stands out and as a firm with its whole existence

depending on good relations between the Chinese and ourselves we can only say, that we regard it as essential, if the Hong Kong

Government camot bring itself of its own volition to come to an agreement with the Customs, for His Majesty's Government to give

then orders to do so.

We have the honour to be,

My Lord,

Your obedient Servants,

Muituire donald

Managers, China Navigation Company, Ltd.

General Agents, Tai-Koo Sugar Refining

General Managers, Taikoo Dockyard & Engineering

Co.Ltd.

Company of Hong Kong Ltd.

The Secretary of State for

the Colonies.

Colonial Office.

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