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It will be evident from the particulars which have been given above (1) that the regime to which British goods destined for Yunnanfu are subjected at Haiphong does not facilitate this traffic (2) that the traffic is subject to a special transit duty which is more than is necessary to defray expenses of supervision and administration entailed by the transit and (3) that the duty offends against the prescribed conditions of aquality because it is in certain cases, indeed probably in most cases, more than is applied to Chinese gooda.
Both Great Britain and France but not China are contracting States to the Freedom of Transit Convention. Both India and Hongkong are included in the scope of the ratifications of the Convention which have been deposited by H.. the King in 1922. France ratified the Convention on September 19, 1924, and it is applicable to all territory under French sovereignty or authority and therefore to French Indo-China.
As stated above China has not yet ratified the Freedom of Transit Convention, though she is one of the original signatories; the reason for China not having ratified is probably connected with the question of internal transit duties which however are concerned with the transit of Chinese provinces and not of China as a whole; these internal duties form a special problem which requires separate treatment. Article 6 of the Statute to the Convention provides in relation to transit from one Contracting State across a second Contracting State to a non-Contracting State or vice versa that the Statute does not of itself impose on any Contracting State a fresh obligation to grant freedom of transit, inter alia, to the goods 'coming into or entering from or leaving by 'or destined for a non-contracting State, except when a
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