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the friendliness shown by the Chinese Government in granting them a loan of the territory adjoining Hongkong, and they see no arrangement so effective as the one now proposed for carrying out their pledges as to facilitating the collection of the Customs Revenue and preventing smuggling.
With regard to the statement in the telegram from the Yamen that in the Convention for the extension of Hongkong it is especially stipulated that within the city of Kowloon the Chinese Officials now stationed there shall continue to exercise jurisdiction, I have to observe that the reference to Kowloon City in the Convention does not appear to have special bearing on the Customs question, and that the Customs Station is apparently outside the city.
Mr Pauncefote's Government consider that there are grave objections to the maintenance of the Chinese Customs Stations in territory under British administration and to the patrolling of the coasts of that territory by Chinese Cruisers. Such an arrangement would be likely to lead to friction between
the
..:
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tha friendliness shown by the Chinsce Goverment in
granting them a louen of the territory kājoining Hongkong, and they see no arrangement eo effective
as the one now proposed for carrying out their pledges as to facilitating the collection of the Cua-
toms Pavenue and preventing emųgling.
with regard to the statement in the telegram
from the Yamen that in the Convention for the exten-
sion of Hongkong it is especially stipulated that
within the city of Kowloon the Chinese Officials now
swabicnod there chull continue to exerciss jurisdic-
tion, I have to observe that the reference to Kow-
loon City in the Convention does not appear to have
special bearing on the Cuctome question, and that the
Customs 3tation is apparently outaids the city.
"ler Pajeeby's Governmant consider that there
urs grave objections to the maintenance of the Chin-
ese Custome Statione in territory under British
udininistration and to the patrolling of the coaste
of thet berritory by Chinese Cruisers.
Such an ar-
rungement would be likely to lead to friction between
*
the
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