CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 13

13

For FO reply and desp. 16 Gov. Concurring in principle sei 52741/28 "Treatment of Refugees

Ju 3002

30026/27 blow

n

Copy to Foreign Office, saying that the

S. of S. agrees that the sanctuary principle as

laid down by Sir R.E. Stubbs in 1922 should be

adhered to, and that subject to Sir Austen

Chamberlain's concurrence he proposes to inform the

Governor that he approves of the continuance of the

present policy.

Nos. 12 and 13 deal primarily with Customs

difficulties, but it will be seen that Sir C. Clementi

cannot resist the opportunity to press once more on

the S. of S. his proposals for regional recognition.

His adherence to these proposals in the face of reproof

and criticism is a matter of some surprise, and it is

still more strange that he makes no reference to the

arguments which have been so repeatedly advanced

from this end. Fortunately the recent telegraphic

correspondence on this point which took place since

this despatch was written makes it unnecessary to

enter into further arguments with him, and it is to

be hoped that his visit to Sir M. Lampson will induce him to abandon (his pet theme.

But these despatches on the Customs are

none the less very important in that they emphasize

an aspect of tariff difficulties which is apt to be

lost sight of, namely, that the higher the tariff

the greater the incentive to smuggling from Hong Kong

and the greater the likelihood of friction between

the two Governments and the possibility of the

establishment of a preventive organisation which would

result in a virtual "blockade" of Hong Kong.

Although the proposed increase in tariff on the 1st

September