CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 27

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Enclo. No.1.

Philippines, a letter from Mr. F.W. Maze, Inspector

General of Chinese Maritime Customs, dated the 23rd

September, 1929. I enclose a copy of this letter,

and Your Lordship will see from it that the Chinese

authorities have objected to Article 5 of the draft

agreement.

The Nanking Government considers that it

would be inconsistent for it "to depart officially from

its declared policy of withdrawing from foreign

shipping the privilege of participating in the coastal

trade of China by formally extending to Hong Kong

foreign-flag vessels the right of trading in inland

waters". Mr. Maze accordingly suggests that Article 5 be deleted altogether on a clear understanding, to be ratified by a formal exchange of notes, that Hong Kong vessels flying the Chinese flag, like the Chinese

junks, may trade freely in inland waters to and from

Hong Kong and Chinese inland places, etc." I only had opportunity for brief discussion of this proposal

with Mr. Southorn before I left for Manila; but I

indicated to Mr. Southorn the lines upon which I

thought the reply should be written, and I enclose

Enclo. No.2. a copy of his letter to Mr. Maze, dated the 2nd of

October, 1929, which embodies my views, namely, that

the deletion of Article 5 would be entirely unacceptable to this Government, for we can hardly be expected to give the Chinese Government certain valuable privileges of a most unusual nature in return for a concession

granted to vessels of Chinese nationality and denied to vessels of British nationality.

4.