CO129-455 - Acting Governor Claud Severn - 1919 [7-9] — Page 67

P

COPY.

559/1910.

sir,

Sonclosure

GOVERNMENT HOUSE

HONGKONG, 28th, April, 1919.

65

I have the honour to acknowledge the

receipt of Your Excellency's despatch of the 29th, March

regarding the Customs Agreement, and to express my regret

that the letter promised in my telegram of the 20th. December

was not sent, the reason being that there was certain new

matter before this Government which has necessitated careful

investigation.

2

The proposed taxation of salt in Hongkong

has from the first been regarded with some misgiving, but

in view of all the circumstances this Government was pre-

pared to adhere to the arrangements which had been practical-

-ly agreed upon. When however at the eleventh hour the

Chinese Government introduced material alteration into the

text of the Agreement without reference to this Government

the position was entirely, altered, and it was decided to

take the opportunity to reconsider the whole project.

3.

The position taken up by this Government

with regard to salt is fully set out in the enclosed copy of

a memorandum by the Superintendent of Imports and Exports.

For the reasons there given it has been decided not to

impose any tax upon salt in the Colony, and Article II of

the Agreement in its present form cannot therefore be

accepted. This Government is able to exercise a control

over salt which would probably be far more effective than

any control which is exercised in China at the present time.

During the long procrastination of the

His Excellency

The Right Honourable

Sir John N. Jordan, G.C.I.E., K.C.B., K.C.M.G.,

His Majesty's Minister,

PEKIN G.

Chinese

JIM,

when

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