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ment would be likely to gain more b; dealing with
estions as a whole with the Imperial Maritime Customs lea
them to obtain the sanction of the Customs Board to the Agreement arrived at; and that with such an Agreement covering all Customs questions to offer, this Government would be more likely to obtain the points it wanted in connection with the Railway Agreement than with only an Agreement touching water- -borne goods.
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In reply His Excellency said that the negotiations regarding the Working Agreement would be undertaken with a delegate or nominee of the Chinese Government and not with any Boards at Peking, but he concurred that it would be preferable to negotiate with the British Customs Commissioner at Kowloon and he added that if the Customs clause is omitted it
may eventuate in hanging up the whole Working Agreement until the extremely difficult international questions involved in the
Marine Customs question are settled.
It was pointed out that the Railway clause
as drafted by His Excellency placed the Railway Customs under
the Railway Board, whereas it was desirable that they should be
under the Imperial Maritime Customs. Vis Excellency pointed out that although he had doubts as to the advisability of this,
it did not a:fect the point at issue, for by a very slight
alteration in the Railway Clause as drafted the Railway Customs
could be placed under the Imperial Maritime Customs if those
with long experience and techn jel knowledge thought it better
to adopt the course. As a part of the Railway under the Board
of Control the Customs would a* use Railway Warehouses and
Bonded Stores, which might be a convenience and avoid the Imperial Paricide Customs functioning, and having stores within the Railway Yards, but this is not a master of great moment.
Sir Henry Hay cuntended that no internation-
-al agreement on the Customs questions was nucessary; that an
arrangement covering such points as the Government were prepared
to
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