CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 93

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that the Customs should be allowed to function in Kowloon

as well as in Hongkong. able to the Hongkong Government, because thirty years ago public opinion in the Colony opposed the idea of permitting a foreign Customs establishment exercising authority and collecting Revenue in a British Colony, contrary to Inter- national usage. The Inspector General, however, informed the Governor that, in his opinion, it is only fair for the Hongkong Government to agree now to Sir Robert Hart's original proposals; that owing to the increased Tariff smuggling from Hongkong had greatly increased of late; and that China, therefore, was at the present time losing hundreds of thousands of taels annually, and would lose

much more in the future unless immediate measures were

The Governor adopted on the lines outlined above, etc. agreed to call a conference at Government House next day at which the Governor, the Inspector General, the Colonial Secretary, the Attorney-General and the Hongkong Harbour Master, the Kowloon Commissioner and Mr. S.F. Wright, the Inspector General's Secretary, were all present. Both the Governor and the Inspector General once more discussed existing conditions and the latter requested the support of

the Governor. After a great deal of discussion and fur-

ther conferences, the scheme described in the enclosure was finally drawn up (draft Agreement), and the conces-

sions offered to China therein are acceptable to the

Hongkong Government subject, of course, to the approval of the British Government. The Inspector General informed

the Governor that, insofar as China is concerned, the

These proposals were not accept-

scheme.