CO129-434 - Governor Sir May - 1916 [7-8] — Page 556

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551

Office of Chinese Maritime Customs

For Kowloon and District,

York Buildings,

HONGKONG, 2nd June, 1916.

CHINESE CUSTOMS CONVENTION OF HONGKONG.

The Inspectorate being a part of and subject to the orders of the Central Government it is for the present important that that no arrangements be made that involve any negotiation with or refer- ence to the Canton Government seeing that that Goverment has for the time being broken away from the Central Government.

The Salt revenue being an important item in the Provincial budget and it being very necessary that the Customs Service should continue to enjoy amicable relations with the Province, no regulations which would involve restrictions on the movement of Salt should be contemplated - until that is to say such time as sees harmonious relations restored between the Province and Peking. All necessary arrangements might, however, be made on paper in order to be brought into operation when the suitable time arrived.

The Hongkong Government is desirous of improving facilities for trade between the Colony and China without loss of time and seeing that the present moment is not propitious for the ratification and enforcement of the Customs Convention of 1911 H. E. the Governor has proposed that two of its Articles might be first dealt with. In return for improved control over Salt and for facilities for collec- tion of Salt revenue in the Colony, Article 2 of the Convention, the Customs are asked to grant the privileges envisaged in Article 9 viz option of retention of China status of Chinese produce passing through the Colony.

The