CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 85

Copy.

CONFIDENTIAL.

99

23rd September, 1929.

N.B.

Under existing Regulations Inland Water Steamers must not go into foreign water. whether under Chinese or foreign flag.

Tintd. )J.W.S.

Dear Sir Miles,

In continuation of my letters of the 8th July

and 27th ultimo, on the subject of the proposed

Anglo-Chinese Customs' Agreement, I now enclose,

for your private and confidential information, a copy of a letter which I am addressing to Sir

Cecil Clementi on the subject. It is self-explana- tory and I need not recapitulate here what is written therein, but I may incidentally add that the Chinese attitude in regard to Article V. (Inland Waters)

is, in my opinion, eminently logical;

and if Chinese-

flag steamers are specially authorised to ply between Hongkong and "Inland" places under Inland Waters Regulations, it must be admitted that this in itself is an unprecedented concession to Hongkong.

As is

well known, of course, the foreign shipping firms now participating in the Chinese Coustal-trade speak freely of ultimately transferring their vessels to the Chinese flag in the event of Coastal-trade privileges being withdrawn. And Hongkong shipping firms (or Agencies) would probably adopt a similar policy in order to be able to engage in local "Inland' trade to and from the Colony. It is also well known that China's Revenue is seriously affected in South China and elsewhere by the application of the new Tariff, and there is a general expression of Chinese

public.....

To

His Excellency

Sir Miles Wedderburn Lampson,K.C.M.G.,

etc.. etc., etc..

PEPING.