CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 69

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Confidential.

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Copy of letter to Mr. Maze from the Hon. T. Southern,

dated Hongkong. 2nd October, 1929.

Dear Mr. Maze,

Your letter of 23rd September, reached Sir Cecil

Clementi yesterday and he had just time for a short

discussion with me before he left for Manila.

He asked

me to reply to you at once demi-officially on his behalf,

setting out the views of this Goverment in the light of

your letter, so far as the limited time available per-

mitted of their consideration.

The attitude adopted by the Chinese Government has,

as you no doubt realize, put an entirely different com-

plexion on the whole question of the Agreement. The

matter will be further considered here on His Excellency's

return at the end of this month, but I may explain at once

that the exclusion of Article V will be entirely unaccepta-

ble to this Government unless some much more substantial

quid pro quo can be offered by you than the suggestions put

forward in your letter; And I would add that a "formal ex-

change of notes" regarding any concession appears to this

Government to offer no advantage over the incorporation of

the details in the agreement, and, as at present advised,

this Government would not accept an exchange of notes in

place of incorporation of the terms of the concession in

the Agreement.

Moreover, this Government, as the Government of a

British Colony, can hardly be expected to give to the

Chinese Government certain very valuable privileges in re-

turn for a concession granted to vessels of Chinese

nationality/