41
PARAPHRASE TELEGRAM from the Governor of Hong Kong to the Secretary of State for the colonies.
Dated 27th November, 1929.
(Received Colonial Office 9.30 a.m. 27th November, 1929.
34
Secret.
Your Secret telegram 22nd November.
Intention of
Article 5 of the draft Customs agreement is to allow steam and motor vessels of any flag if registered with Chinese Customs to trade between Hong Kong and non open ports.
At present only junks are allowed to so.so In practice this privilege would chiefly benefit the British and Chinese flag vessels. The question is not, however, only a shipping question. It is even more a question of Hong Kong trade. The proposed removal of the present artificial barrier to direct trade between not open ports and Hong Kong would stimulate commerce.
The same effect would not follow grant
of privilege only to chinese flag vessels trading from Hong Kong because these form merely a part of the shipping of Hong Kong and also are much more open to piracy, exactions, and commandeering.
Similar navigation privilege could not be demanded by other countries because they are not in a position to grant in return privileges similar to those offered by Hong Kong except in such cases as Kuang Chow Wan and Macao. In those two cases China would probably like to contlude agreements
similar to that with us.
To accept discrimination between the British flag and
Chinese flag steam and motor vessels might embarrass general
negotiations between Great Britain and Chinese Government
regarding inland water and coastal trade.
Acceptance
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