CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 27

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flag in ocean-going steamers or river steamers, or other craft owned by them. They can, therefore,

under existing treaties, for all that the Hong

Kong Government can do to prevent them, use the

British flag for purposes of trade from this Colony

along the Chinese coast or on the inland waters

of China. In the past Chinese, who were not

British subjects, have on numerous occasions,

while trading under the British flag in Chinese

waters, committed abuses of various kinds, such

as smuggling, and have even called upon the British

Naval authorities to protect them from the

consequences of their own misdeeds. Now it is

of the utmost importance to Hong Kong that the

British coast wise trade in China and the British

trade in Chinese inland waters should continue

as heretofore, and even be extended and one of the

main objects which we seek to secure in the draft

customs agreement, now under negotiation between this Colony and the Chinese Government, is the

preservation of these rights. If, however, such rights are to be preserved, I consider it imperative that the ong Kong Government should be empowered

to withhold the right to fly the British flag in Chinese inland waters from any, company or shipping firm, which is not genuinely British. I should very much prefer to obtain this power by direct legislation, which would authorize the Hong Kong Government, in express words and without any special mention of China, to refuse the right to fly the British flag in steamers and vessels of all kinds

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