CO129-517-1 Administration and function of Chinese Maritime customs- prevention of smuggling across Chinese frontiers 7-2-1929 - 15-11-1929 — Page 48

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7. The proposals and counter-proposals will still

have to be discussed in detail, but it seems likely that

a Preliminary Agreement between Sir Cecil Clementi and Mr.

F. W. Maze will eventually be reached on these general

lines and submitted in due course for ratification.

8. The great difficulty for Hongkong appeared to be

the formal admission of a foreign service to administrative

control in British territory, with all that would imply

in derogation of sole authority and manifold inconveniences.

Again, if the Agreement should be ratified, it would mean

considerable expense in increasing staff, etc., and great

difficulties in the exaction of penalties which should not

be excessively severe but should at the same time be suffi-

ciently deterrent. On the other hand the advantages which

should accrue to Hongkong in developing its entrepôt trade

with China through the virtual acquisition of the status

of a Chinese treaty-port as regards its trade with China,

the extension to Hongkong steamers of Inland Waters Steam

Navigation privileges, the acquisition of bonded warehouse privileges for cargoes destined for China, etc., tend to

the belief that a considerable balance of advantage would

be in favour of Hongkong. Such indeed seemed to be the

opinion of the members of the Committee of the Hongkong

British Chamber of Commerce with whom I discussed the

question.

9. Mr. Maze's proposals are necessarily subject to

the approval and the confirmation of the Chinese Government. They appear to be generous and well-conceived in the mutual

interests of China and Hongkong and, if accepted by the

Colonial Government, it is to be hoped that they will be

duly ratified.

10./