CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 217

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Hong Kong foreign flag vessels the right to direct

Inland Waters trade. Mr. Maze was therefore authorised

to enquire whether there was any other concession

which China could offer to Hong Kong, in lieu of the

original Inland Waters privilege outlined in Article V

of the Agreement.

With the approval of the Chinese Minister

of Finance, Mr. Maze suggested that Article V. should

be deleted altogether, on the clear understanding,

to be ratified by a formal exchange of notes, that

Hong Kong vessels flying the Chinese flag, like

Chinese junks, might trade freely under Inland Water

rules to and from Hong Kong and Chinese "Inland"

places, etc. If coastal-trade privileges were with-

drawn in China it was conceivable in fact it was

C

commonly asserted that most of the foreign coasting

vessels would be transferred to the Chinese flag.

Foreign shipping interests in Hong Kong would probably

adopt the same policy, but, without some such

Agreement as the one under di scussion, even Chinese-flag

vessels coming from Hong Kong would be debarred

from such privileged trade. (Under existing

Regulations Inland Water Steamers must not go into

whether under Chinese or foreign

foreign waters

flags).

Mr. Maze was also able to extend the

provisional concession as regards goods from a Chinese

Treaty port transhipped in Hong Kong en route to

another Treaty-port to the extent of permitting such

goods to be transhipped in Hong Kong into junks or

railway