CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 25

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62847/31/12)

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Kwangsi, which have hitherto been closed to such trade, may be acquired under the proposed customs. agreement between Hong Kong and China, of which a draft was forwarded to Your Lordship in my secret

Host members despatch of the 1st August, 1929,

of Executive Council consider that, if the Chinese authorities are determined not to allow British ships to trade on inland waters anywhere in China, they would resent the passing of an ordinance which purports to give the Governor in Council of this Colony power to grant licenses at his discretion to any British ships to trade in any of the inland waters of China. This point might to some extent perhaps be met by recasting sub-clause 3.A.(1). of

the Bill to read :-

"It shall be unlawful for British ships from "Hong Kong to trade within the inland waters "of China unless they have been granted by the "Governor in Council licenses, hereinafter

!

"called licenses to trade in Chinese inland

"waters' "

•

It was felt, however, that, even so amended, the

;

draft legislation might create a bad atmosphere for the consideration of the proposed customs agreement between Hong Kong and China.

would

4. It be possible to qualify the power

to be given to the Governor in Council by the

adition of some such words as "in so far as such

trade by British vessels may be authorised by treaty,

sufferance or other lawful means":

but I am very

doubtful