CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 107

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using chinese non-treaty ports, whether on the inland waters

or on the sea coast, without being under any obligation to

extend those privileges to the vessels of any foreign power.

Indeed, it is presumably the fact that if she did extend

such privileges to any British vessels, she would thereby

put herself in the position of having to extend the same

privileges to flags of other foreign powers entitled under

existing treaties with China to most-favoured-nation treat-

ment for their shipping.

The Board further note that Sir Cecil Clementi, in his

despatch of the 1st August, paragraph 10, promises a further

communication in regard to the draft agreement as soon as he

has been able to consult his Executive Council and local

mercantile opinion, and the Board are therefore disposed to

reserve their final observations in the matter until they

have had an opportunity of considering this further informa-

tion and also the Governor's reply to the Colonial Offi ce

telegram of the 25th October respecting the modification of

Article 5 dealt with above.

I have the honour to be,

Sir,

Your obedient Servant,

l'ani