CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 150

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ports in China) would react detriment- ally on British interests in China by weakening our position in regard to coastal and inland water navigation rights in our present commercial treaty negotiations.

That, while Article 10 is considered of minor importance, the omission of Article 6 might be considered by China as tantamount to an acknowledgment that the Chinese Government as represented by the Customs Administration had a right to function in Hong Kong on their own terms.

In conformity with these opinions the

Committee passed the following Resolution:

"This Chamber supports the draft of the "Hong Kong China Trade and Customs "Agreement as forwarded by H.E. the "Governor of Hong Kong to the Colonial "Office, copy of which is now before it".

My Committee, with the exception of the

two members referred to above, feel that the

draft ågreement submitted by Hong Kong is

reciprocal and reasonable in view of the

privileges being offered to China and the

obligations that Hong Kong is willing to assume.

They feel that agreement with the

modification suggested by China in Clause 5

might seriously prejudice our position with

regard to coastal and inland water navigation

rights. Though at present British vessels

cannot trade from Hong Kong to non-open ports

in China, the functioning of Chinese Customs

at Hong Kong would to all intents and purposes

give Hong Kong a Treaty Port status, which

status should automatically include inland

water navigation rights.

/If

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