CO129-366 - Governor Sir Lugard Acting Governor May - 1910 [4-5] — Page 337

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xvi. The Colonial Government to enact such legislation as shall

give effect to the terms of the above or other arrangements

and regulations agreed upon.

into

It will not be amiss to here recall the gist of an

that official utterance of a British Consul General to this effect granting that goods on arrival in Chinese waters for landing in China are liable to revenue payments, it is not conceding much more to allow that revenue payment to be made before the goods leave the Colony. And to further remark that in so far as the above or other proposed arrangements assimilate to the so called "Kiaochow pro- sedure* it may be claimed that arrangements which are not deroga- tory to the German Government to enter cannot be derogatory for the Hongkong Government to accept; and that arrangements which have proved non-injurious but beneficial to the trade of Kiaochow cannot be injurious and will prove benefiéial to the future trade of

The conclusion on some such lines as out-lined above of a provisional agreement, say for five years, would in my opinion be of great advantage to both parties: the Colony would still remain a free Colony so far as its own consumptive area was concerned and it would no longer bear the reproach in China's eyes of being a port for free smuggling to the detriment of its neighbour and of

legitimate trade.

Hongkong.

Hongkong,

14th January, 1910.

(sd) A. H. Harris.

Ivx