CO129-501-5 Chinese situation- Recognition of Canton Government 22-7-1927 - 28-9-1927 — Page 49

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Indernity funds now in the hands of His Majesty's

Government and that an effort should be made in

connection with any forthcoming negotiations with

the Chinese authorities, and particularly with the Government of Cnton, to secure the completion of

this scheme.

(3). As the principal harbour at the mouth of

the jest River, Hong long is deeply interested in the condition of the inland waterways of Kuang-tung and

especially in the Pearl or Conton River. That river

has for years been silting until there is now only a narrow channel loft and that only navigable to a draught of less than 15 feet. Hong Long would readily participate in any scheme for an organized conservancy of this river, such as was recently formulated by the

British Chamber of Commerce in Canton, but abandoned

owing to political disturbances.

(4). Hong kon also wishes to see a revival in principle (though not in detail) of the scheme of bonded warehouses that formed part of the proposed Customs Areement which, after much negotiation, was abandoned in 1921. At present any Goods exported from one part of China to another, which are in any way handled in Hong Kong, lose their native status and privileges in the matter of duty. A system of bonded warehouses established in Hong Kong under the control of the Chinese Maritime Customs would remove

this

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