CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 88

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Hongkong which they have placed on their agenda for

subsequent withdrawal in China proper. Surveyed solely

from the standpoint of Nanking and Canton, the stand

thus adopted is intelligible and logical, however dis-

appointing it may be to us.

In connexion with what precedes, I am now authoris-

ed to approach Your Excellency once more, and enquire

whether there is any other concession which China can

offer to Hongkong, in lieu of the original Inland Waters

privilege outlined in Article V. of the Agreement' And

I may add that I myself have been asked by the Govern-

ment to endeavour to effect a modified settlement on

the main lines already drawn up. The matter has engaged

my careful attention, and I believe that it is un-

necessary for me to emphasise that no one is more

anxious to find a satisfactory solution of the question

than I am. The amended plan in regard to Article V.

that I now submit, with the approval of the Minister

of Finance, for your consideration is as follows:-

In view of the delicate Chinese political situa-

tion and the extreme difficulty of co-ordinating and re-

ducing to a common factor the various interests of Nan-

king and Canton, I suggest that Article V. be deleted

altogether, on the clear understanding, to be ratified

by a formal exchange of notes, that Hongkong vessels

flying the Chinese flag, like Chinese junks, may trade

freely under Inland Waters rules to and from Hongkong

and Chinese "Inland" places, etc. If Coastal-trade

privileges are withdrawn in China it is conceivable -

in fact it is commonly asserted - that most of the

foreign....