CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 235

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

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goods manufactured in Hongkong.

With regard to these and

other amendments, however, it will not be possible to form

a definite opinion until the new draft has been communi cated

to the Inspector-General of Chinese Maritime Customs and

his views upon it have been ascertained.

3. The crux of the whole agreement is Article V relating

to inland water privileges for vessels plying fron Hongkong.

Sir C. Clementi continues to insist that unless these

privileges are secured for vessels under the British flag

equally with Chinese vessels, he must refuse to proceed with

the agreement. The principal argument which he adduces in

his despatch of November 20th is that the Chinese mer chants

of Hongkong value very highly the protection given by the

British flag and would be most reluctant to dispense with it.

From this purely local point of view there is undoubtedly

some justification for the attitude Sir C. Clementi has

taken up.

He appears, however, to have ignored the

consideration that the protection of the British flag in

China is the responsibility not of the local government in

Hongkong but of His Majesty's Government in the United

Kingdom and that in the interests of friendly relations

between Great Britain and China it is undesirable that there

should be any considerable increase in the number of Chinese

owned vessels navigating the inland waters of China under

the British flag. I am to request that Lord Passfield's

attention may be drawn in this connexion to the views

expressed by Mr. Henderson in paragraph 4 of the letter from this department F 5071/52/10 of the 18th October last.

62847/29

4..

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