CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 96

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It may be urged that if the Agreement is sanctioned

Hongkong will prosper at the expense of Canton? This is

utterly fallacious reasoning! Hongkong is not a consuming

centre and never will be - it is merely a distributing cen-

tre. Canton City, on the other hand, is a consuming cen-

tre; and is also the distributing centre for the Provinces

of Kwangtung and Kwanghs1. Apart altogether from the

Agreement, however, there exist physical reasons which will

always result in keeping Hongkong the main distributing

centre for foreign goods destined for South China; and

these physical reasons are the shallow water at Canton and

Macao, and the deep water at Hongkong. Large ocean steam-

ers cannot possibly proceed to either Canton or Macao,

and are compelled, therefore, to land en route foreign car-

go intended for South China in Hongkong for subsequent

transhipment to Canton, etc. Hongkong, therefore, can

never displace Canton. And, moreover, the greater the

amount of cargo arriving in Hongkong for, or from China,

the greater the benefit to China! So this idea that the

Agreement may damage Canton is utterly wrong it will add

to the prosperity of Canton and will facilitate legitimate

trade and stop, or at least check, illicit trade. And,

it should not be forgotten that while China is now losing

hundreds of thousands of taels owing to smuggling goods

into China from Hongkong, these figures will ultimately

expand to millions unless something is done, and done soon.

Similar arrangements should be made in Macao and Kwang-

chowwan. The Inspector General saw the Governor of Macao,

and he realises the position and is prepared to follow

the..