CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 222

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Article IX is entirely recast, after consultation

with British and Chinese Merchants.

A new Article X. (inserted, at the instance of

British and Chinese merchants, to assist Hong

Kong manufacturers) secures national taxation

treatment in China for goods of any description

manufactured in the Colony.

In forwarding the revised draft to the

Secretary of State in a despatch dated the 20th

November (to which no answer has yet been returned),

Sir C.Clementi wrote as follows:-

"The net result of these amendments is to

diminish the privileges for British trade a

sought to be obtained under Article V, but to

obtain compensation by the inclusion of privileges

with respect to Hong Kong manufactures and to the

transit trade through Hong Kong. I do not myself

consider that the quid pro quo now proposed is

in any way excessive, having regard to the very

valuable and extraordinary privileges which it is

proposed to give to the Chinese Maritime Customs,

privileges which are fraught which an appreciable

measure of risk to the administration of this

Colony. I am able to state definitely on behalf

of the Hong Kong General Chamber of Commerce,

the Hong Kong Branch of the China Association and

the most representative Chinese merchants in

Hong Kong that the agreement in the form in

which it is now reprinted is acceptable to them,

and that they regard it as beneficial to the

Colony. It is also in my opinion an agreement

which it would be proper for the Hong Kong

Government