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railway trains without forfeiture of status.
Mr. Southorn, ColonialSecretary, replied
Inspector-General.
to Mr. Maze in a letter dated the 2nd October, in
the temporary absence of the Governor, who had however
di scussed the matter with him before his departure. The
reply declared that the exclusion of Article V. would
be entirely unacceptable to the Hong Kong Government
unless some much more substantial quid pro quo could
be offered than the suggestions put forward by the
The Hong Kong Government, as the
Government of a British Colony, could hardly be
expected to give to the Chinese Government certain
very valuable privileges in return for a concessi on
granted to vessels of Chinese nationality and deni ed
to vessels of British nationality. Further, the
Government, as then advised, would not accept an
exchange of notes regarding any concession in place
of incorporation of the terms of the concession in
the Agreement.
The letter concluded:
"We are however
ready and indeed anxious to continue the negotiations
regarding the proposed agreement for we are very
de si rous of arriving at some settlement which will
assist the Chinese Government to protect its revenue.
I shall await a further communication from you,
setting out such further concessions as the Chinese
Government may be prepared to make,
and
would merely add that, if the Chinese Government
fears the effect of these concessions in its dealings
with other nations, it should be borne in mind that
no
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