CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 106

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the waters of the colony. In particular Hong Kong has

adhered to the Anglo-Japanese Treaty of 1911, and to other

similar Treaties and is therefore under an obligation to

accord most-favoured-nation treatment to Japanese vessels,

and similarly to vessels of other foreign nationalities.

Hong Kong is also a party to the Maritime Ports Convention,

which would preclude any departure from equality of treatment

in respect of vessels flying the flag of any Contracting

Party to the Convention. The Board, however, understand that

the provisions of Article 5 of the draft agreement are to be

regarded merely as according to certain vessels the right under

certain conditions to trade to and from non-treaty ports in

China (and Hong Kong). If this view is correct and any rights

conferred by Article 5 of the Agreement are in fact in respect

of Chinese territory only Hong Kong can claim that she is not

through this agreement extending to the vessels of China privi-

leges which she is withholding from the vessels of other countries

entitled, so far as Hong Kong is concerned, to most-favoured-nation

treatment.

As regards the international obligations of China which might

be relevant, China, so far as the Board are aware, is quite free

to grant whatever privileges she may desire to Chinese vessels