CO129-517-7 Draft Commercial Treaty with China- Governor's action 14-3-1929 - 25-7-1929 — Page 13

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done in respect of goods exported to China by Kowloon

Canton Railway. This is perhaps desirable but it

could certainly not be permitted without guarantees that

the commissioner of Customs for Kowloon should remain

British.

Returning to Article 18 I learnt on April 23rd

from Commissioner of Customs Kowloon that he had in

February received circular order from Inspector General

of Customs as follows: "native products when sent from

one treaty port to another treaty port via foreign ports

are to be granted duty paid certificate privileges no

matter how often the goods may have been landed and re-

loaded on the way provided only that no re-packing has

taken place." He confirms this as definite order from

the National government but has not published it. This

ruling appears prima facie to satisfy intention of

Article 18 while avoiding possible difficulties which

Chinese customs supervision in Ilongkong might involve.

I have consulted Chamber of Commerce on this new develop

ment and await their reply. It is probable that other

sections of draft treaty may be affected by local views.

It is clearly essential that Hongkong shall accede

to whatever treaty is concluded and I consider the only

safe course in a matter of such gravity is full verbal

discussion. I strongly urge that you should visit Hong-

kong for this purpose before initiating discussions with

Nanking. The short delay would in my opinion be an ad-

vantage in view of the obscure political situation in

China. Ends.

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