CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 237

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He also shares the apprehension of the merchants in Hongkong

and Shanghai with regard to the limitations of the inland

water privileges of vessels plying from Hongkong to Chinese

flag vessels to the extent that he believes such limitation

would seriously weaken our position in regard to coastal and

inland water navigation rights in the forthcoming negotiations

for a new commercial treaty with China. He considers that

this question should not be made the subject of a controversy

in connexion with a local agreement but should more properly

be dealt with by His Majesty's Government with reference to

China as a whole. He also considers that it is impossible

for the Chinese Government to accept Article VI, which is

a corollary to Article V, or Article X which deals with

Hongkong factory products. He believes that without these

three Articles the agreement would be beneficial to Hongkong

trade and to British commercial interests in China generally

and he is therefore of opinion that they should be deleted

and the agreement so modified concluded accordingly.

6. Sir C. Clementi on the other hand insists on his view

that no agreement should be accepted which does not confer

the full privileges of Articles V, VI and X or some other

concessions of equal value. No alternative concessions have,

however, been suggested.

7. An agreement relating to the position of the Chinese

Maritime Customs in Hongkong has a direct bearing on the

policy of His Majesty's Government and on British relations

and British trade with China generally. Sir C. Clementi

appears, however, to have been unaware that any interests

besides.....