CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 252

254.

Copy of Telegram sent to Hongkong Chamber of Commerce

4th December, 1929.

-o000o---

Have seen original draft Hongkong Customs Agreement

which appears desirable for following reasons:-

(1)

Reduces smuggling minimum thus removing cause of

continual friction

(2)

Increases value to Chinese of Customs Organisation thus

tending to prolong its existence in present form

(3)

(4)

Fact that interport transhipments do not lose status of

origin should greatly increase entrepot trade

Non-acceptance will inevitably antagonise Chinese and

lead to stringent preventive cordon round Hongkong and

leased territory including removal of Kowloon Customs.

organisation to Shamchun which must very adversely

affect local commercial interests causing irritating delay

British cargo constant friction (stop) Chinese

insistence non-inclusion of British flag clause 5 removes

danger incidents occurring detrimental to amicable

relations and advantages outweigh any precedent created

by non-inclusion besides which inclusion would result

Japanese and other nations demanding similar privileges

under most favoured nation clause which they entitled to

do without granting reciprocal benefits (stop) When

considering apparent inadequacy China's quid pro quo think

essential take into fullest consideration probable out-

come of non-acceptance as per reason 4 (stop) Communi-

cate this to Shanghai (stop) We await your comments

before expressing above views Foreign Colonial Office.