CO129-471 - Public Offices - 1921 — Page 58

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reasons advanced by Sir R. Stubbe and Er. Severn for the sulien volte face executed by the Hongkong Coverment it is permissible to wint out that the argments wguinst the proposed agreement were quite -s valid during the years 1916 to 1918 when the negotiations were in progress

This statement on in any case, as in the folloring year. hardly be questioned as regards the coint on which Sir R. Stubba tries his strongest stand, the effect of the agree- wont in increasing the price of salt to the poor of long- kong, and it is evident therefore that the present atti- tude of the Honkong Coverment is due not to any change in political or economic conditions but solely to the fact that the views held by Sir R. Stubbs and Er. Severn with regard to this question are directly opposed to those of

their predecessor.

I have the honour to suggest that if obligations vis-a-vig the Chinese Goverment undertaken by this Lapa- tion under the instructions of "is Hajesty's Secretary of State and at the request of the Hongkong Government are at all times to be subject to disavowal or cancellation oving to a change of policy on the part of the Officer Administering the Government of lionykong it will be dif- ficult to ensure that close and harmonious cooperation between the Colonial Government and this Legation which is escantial to the wintenance of british prestige and influence in China. It is clear, moreover, that a sudden suspension of negotiations after engwements have been definitely accepted on behalf of llis -ajesty's Government is calculated to compromiss very materially the position of this Legation and to crejudice the settlement of other Important

questions under discussion with the hinese

Government.

In this condemnation of the terms of the Draft

bereement