CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 61

75

assist China. But Chinese Government must reciprocate and if

they refuse bargain which is now offered to them they cannot justly say that Hong Kong has not helped in their effort to suppress smuggling. Concessions offered by Hong Kong are very exceptional and involve serious curtailment of freedom of port.

Opinion in this Colony is unanimous: it is firmly opposed to

deletion of Articles V and X and if China rejects them Hong

Kong would not be prepared to go on with Agreement in its present form but would require whole question to be dealt with on other lines which I should be willing to discuss with Chinese Maritime

Customs representatives. I consider that any whittling away at

this draft would be grave mistake in tactics at this stage. It must be driven home to minds of Chinese officials that what they are asking is something quite exceptional and they mustbe prepared to concede exceptional privileges in return. A defeati st policy will of course bring defeat. I also consider that we should attempt no further negotiations with Chinese Authorities on this subject until we know quite definitely with whom we shall have in future to deal at Nanking and Canton. Views here stated

are concurred in by Executive Council.