CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 71

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CONFIDENTIAL.

To

85

Shanghai Office of the Inspectorate General of Customs,

21, Hart Road.

SHANGHAI, 18th October,1929.

Dear Mr. Southorn,

I wish to thank you for your letter of the 2nd

instant, relating to the proposed Customs' Agreement

and informing me that the "exclusion" of Article V.

will be entirely unacceptable to the Hongkong Govern-

ment unless some much more substantial quid pro quo can

be offered than the suggestions outlined in my letter

of the 23rd ultimo adding that "a formal exchange of

notes" offers no advantage over the incorporation of

details in the Agreement, etc.

❤

It is perhaps well to consider that the proposal

to delete Article V. does not mean a total withdrawal

of Inland Waters benefits from Hongkong vessels - on

the contrary, the Chinese Government (as represented

by the Minister of Finance) have registered their will-

ingness to concede the original Inland Waters privileges

to Chinese-flag vessels trading to and from Hongkong

which at present cannot function under Inland Wuters

Regulations; and it seems to me that this unprecedented

arrangement ought not to be regarded merely as a special

concession to Chinese merchants, because such an exten-

sion of shipping facilities would promote the general

commercial interests of the Colony. And in regard to

the question of granting further concessions I am pre-

pared to recommend that all the extra-Treaty privileges

The Hon. W.T. Southorn,

etc.. etc..

HONGKONG.

etc..

now..