CO129-521-12 Chinese Customs- proposed agreement with Hong Kong 2-4-1930 - 16-6-1930 — Page 48

Note by be. Gent (he. Ellis shie G. Grindle have sea)

on her, Hobhouse's letter

full

Please have drafted for my silamu as

an answer as is

permissible

मजड

2

30th May.

HONG KONG- CHINA CUSTOMS AGREEMENT

Extat 48

3/430 68

Mr. Hobhouse sets out clearly and accurately the

side of this question, but of course gives no prominence

to the arguments on the other side

ment's side.

-

the Hong Kong Govern-

The position briefly is that with the considerable

increases in the Chinese Tariff the Chinese Customs found

reason to suspect that considerable smuggling was being

developed of dutiable goods from Hong Kong into China.

They accordingly proposed to Hong Kong a Customs Agreement

to provide for a limited power of Chinese Customs Officers

and vessels to operate in Hong Kong waters with the active

assistance of Hong Kong Government officials.

Sir C.Clementi and his advisers very strongly

disliked the idea of Chinese Government officials with

their well known capacity for graft and political (anti-

British China irredenta) intrigue operating in Hong Kong.

He had every reason for this view from his experience of

the general slogans of the Kuo Min Tang, and of the operation

in Hong Kong of the Chinese Telegraph Office.

In the interests of good relations and the

suppression of illicit trade however he was prepared to come

to an agreement to protect the Chinese Customs Revenue, but