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the se ends, in addition to conferring important benefits on
the entrepot and transit trade of Hongkong, would appear to
be so eminently desirable in itself that the prospect of
concluding it should not be jeopardised by putting forward
further demands which it is impossible for China to grant
and which (in the case of Article V) considerations of high
policy seem to make it undesirable that she should grant.
Mr. Henderson is further of opinion that great weight should
be attached to Sir M. Lampson's view as to the undesirability
of prematurely raising a controversy on the subject of
inland water navigation rights in China.
9. The view expressed by His Majesty's Consul-General at
• Canton that the Customs problem at Hongkong (by which he
apparently means the smuggling problem) is not so urgent
as Mr. Maze represents is hardly borne out by information
as to the serious extent of smuggling from Japan and Formosa
to the coast between Canton and Fu-chow. It is indeed
difficult to accept it in face of the probabilities inherent
in the considerable recent increase in the Chinese Customs
Tariff, and the contiguity of Hongkong to China.
10. The conclusi on to which these considerations appear
to point is that the draft, as initialled in Hongkong in
July last, with the total omission of Articles V and VI,
should be made the basis of the agreement to be arrived at.
Sir C. Clementi bases his insistence on Articles V, VI and X of
the later draft on the necessity for securing adequate
compensation for the extraordinary privileges which Hongkong
will grant to the Customs Administration. While it is of
course.
No comments yet.
Private notes are available after approval.