CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 28

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to those who are not British subjects, and I would again urge Your Lordship that an attempt should be made to frame legislation on these lines. In this, as in many other respects, the position of Hong Kong is unique in the British Empire and merits special treatment. I cannot consider the Bill, as now

drafted, to be the best - or even a satisfactory method of solving the problem with which we are confronted, and I shall await Your Lordship's further instructions before proceeding with the matter.

8.

If better cannot be done, rather than pass the Bill as drafted, I would rely on His 'ajesty's Consuls in China, who under sections 7, 8 and 15 of the King's Regulations No.5. of 1915, can refuse to certify to the Chinese Customs that any particular vessel is entitled to British protection in Chinese inland waters, and who can arrest any ship flying the British flag, if she engages in trade in Chinese inland waters, without the consular certificate.

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But

I very much deprecate being obliged in this Colony, which is practically surrounded on all sides by Chinese waters, to recognize the right of aliens and especially of Chinese subjects to fly the British flag in Hong Kong waters and even to leave the waters of the Colony flying the British flag. Cur action in permitting our flag to be so used by aliens is inevitably misconstrued by the Chinese authorities; and it is humiliating to this Government to be compelled by law to allow the use of the

British