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which involves an infringement of our sovereign rights.
This caused repeated exchange of views without leading to
any result.
It is learnt that the Hongkong Government are
now suddenly granting permission for the establishment of a
Customs station and the collection of duty in their
territory without stipulating any conditions. Compare
this generosity with their former closeness and we must
inquire into the reason for it carefully. Briefly, if a
Customs station is established in Hongkong's territory and
duties collected, then from that time all imported goods
will not pass through Canton for consumption in the various
areas and the Canton market will therefore suffer a great
blow, which it could with difficulty withstand. Now with
a view to remedy smuggling effectively, the anti-smuggling
patrol boats and the customs patrols should be increased
in number and customs stations and barriers should be set
up in the free ports in the territory. These plans will
entail small outlay and the results will be large.
Therefore the Hongkong Government, while expressing
sentiments of friendly help in the matter of erecting a
Customs station in Kowloon, really wish to move the nerve-
centre of the trade and commerce of South China, and to
weaken Canton while strengthening Hongkong. It is
essential that this proposal be defeated with the aim of
enriching the National Treasury and shewing regard at
the same time for the livelihood of the people.
I would observe that the National Government'
proclamation declaring the opening of Chungshan port is of
very deep significance. Very recently a certain engineer
of the Dutch Irrigation Engineering Company stated in
general that the port certainly possessed first class
qualifications, and could be completed without great
expense./