93
C. O.
Mr.
Mr.
Mr.
Sir C. Parkinson.
Sir G. Tomlinson.
Sir C. Bottomley.
Sir J. Shuckburgh.
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
DRAFT.
FURTHER ACTION.
The main difficulty as regards operation
in Hong Kong of the Chinese Maritime
Customs was surmounted by the adoption of
the compromise mentioned above. The
system proposed may not work very smoothly,
but will in all probability do much to put
an end to the undesirable state of affairs
created by the growth of smuggling, and
will therefore constitute a net gain. No
provision was made for the extension to
Hong Kong foreign flag vessels of Chinese
Inland Water Navigation privileges; but it
has been argued that in any case such a
stipulation might result in many Chinese
Companies seeking the protection of the
British flag by registering in Hong Kong
and involving a serious danger of friction
between His Majesty's Government and the
Chinese Government should such vessels fall
foul of Chinese regulations. It has been
considered on the whole desirable to
concentrate on the consolidation of our
position in the Chinese coastal trade, and
the