CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 205

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

207

by Chinese firms who wished to be able to engage in the

island

traffic under protection of the British flag.

(trε

Sir J. Pratt produced a document showing that an

overwhelming proportion of ships registered under the

Inland Water Regulations at Canton was Chinese. If.

therefore, participation in the inlanu traue was opened

to Hong Kong British ships, it would mean that a large

number of Chinese vessels would be transferred to the

British flag and we should find ourselves in the unpleasant position of protecting these in Chinese waters.

A possibility of further complications lay in the

fact that under most favoured nation treaty provisions claim an equal right

Japanese vessels would

to participate in the trade. On the other hand, it

was feared that the limitation of the proposed

privilege to Chinese flag vessels only, as suggested

by the Chinese authorities, might prejudice our general

negotiations with China regarding navigation rights

in connection with the draft Commercial Treaty.

Mr. Overton stated that the Board of Trade regarded

the preservation of general coastal e naviga-

tion rights for British ships as of more importance

than the interests of the local trade around Hong Kong.

It was pointed out that His Majesty's Minister has been

informed that His Majesty's Government attach greater

importance to coastal traffic (for which, indeed, Chinese tonnage was not available, and if necessary to retain it,

a,if

would let inland water traue go. Sir J. Fratt recalle

also that

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