CO129-434 - Governor Sir May - 1916 [7-8] — Page 560

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555

entertain such a far-reaching proposal as that of Mr. Harris. In answer to a question from Mr. Fletcher Mr. Harris intimated that in the event of the Chinese Customs being allowed to function as suggestea he saw no objection to their handing over smugglers and their craft, if seized, to be dealt with by the British Authoriti-

-89.

His Excellency remindeu Mr. Harris that the extraordinary legislation in the interest of China's revenue offeredby the Hongkong Government was a very valuable quia pro quo for the facilities askeu for in the interests of the trade of Hongkong ma he thought that the bargain as outlined above was a reasonably advantageous one for both parties and should be accept-

-ed.

Mr. Harris agreed in this view and said that the extension of facilities he asked for might be left for future consideration.

Mr. Harris further suggested that the Godowns referred to in Article IX should be placed under the control of the Chinese Customs. The Governor demurred on principle and on the ground that the Hongkong Government could be trusted to give affect to this article in good faith. Mr. Harris concurred in the latter expression of opinion, and aid not press his suggestion.

(d) HAmmay

6.7.16.

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