CO129-434 - Governor Sir May - 1916 [7-8] — Page 565

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(g) Article IX has been re-written, with the object of

giving more definite expression to its intention.

(h) The second paragraph of Article I has been re-written,

with a similar purpose.

(i) Tobacco has been added to the articles enumerated in Article II, as tobacco is now subject to taxation on entering Hongkong.

(j) Article XIII contains various alterations, designed to make the intention more clear. Subsection (g) has already been agreed upon.

(k) A new sub-section (h) has been added. Reference may

be made in this connection to Mr. Gordon's Lowder's letter No. 85 of the 29th November, 1915, addressed to the Manager of the British Section of the Railway. It is earnestly hoped that this sub-section will be accepted. Any loss which it may entail to the Chinese Customs when the rate of exchange of the dollar is low will be counterbalanced by the gain when the rate is high.

3.

This Government has not as yet had time fully to consider the draft form of bond and of regulations regarding bonded warehouses, which were forwarded with your letter of the 26th July. Mr. Hutchison, Superintendent of Imports and Exports has been instructed to communicate with you regarding these.

4.

I am to ask that you will be so good as to for-

ward the revised draft agreement to the Inspector General of Customs, with a request that he will consider it at his earliest ! convenience, as it is desired to approach the Chinese Government formally in the matter at as early a date as possible.

I am, etc.,

(SD.) Claud Severn,

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Colonial Secretary.