CO129-471 - Public Offices - 1921 — Page 54

of exchange for the payment of dues on the Canton Kowloon

Railway. r.Harris made various counter proposals The Agreement reached a "final form" definitely committing the Government of Hong Kong to tax salt.

In 1917 Sir J.Jordan wrote to Sir H.May "In view of the long 'deleys which the frequent political upheavals in China have hitherto imposed on these negotiations, I should be glad to see the Convention concluded as soon as possible" and offered to do

his best to get it signed soon: and he was authorised

early in 1918 to sign it. The usual methods of the Chinese caused the usual delays, but on April 11,1919 Sir J.Jordan Yeceived a note from the Chinese

Minister for Foreign Affairs authorising signature by the Inspector General. Meanwhile on 20th December 1918,r.Severn as Officer Administering the Government telegraphed to Sir J.Jordan asking him not to sign, and promising a letter on the subject. The reasons

for this change of attitude are set out in 56897/19 and in Sir E. Stubb's despatch of 10th February 1920 (17188/20).

Sir B.Alston says that without attempting to dispute these reasons in detail (which he immediately proceeds to do in the case of salt) the arguments were just as

valid in 1916-18 as in 1919. As a matter of fact

there had been considerable alterations in the

position since 1915-16; and the negotiations up to 1918 had proceeded under the momentum supplied by considerations of gradually diminishing

importance. It is quite time that there was a volte-

face over salt: but it must be remembered on the

other

51680/16

10843/18

45326/19

other points that when the negotiations were were re-started in 1915-16

(1) Hong Kong was very short of cash (2) It was thought that the Peking Government might at any moment regain control of Kuangtung a prospect which now see no nearer than it did then.

(3) it was thought that it would be possible to get the agreement working quite soon which did not prove to be the case, largely owing 23 Sir E.Stubbs observes to Chinese shilly-shallying.

3/7/2

53