CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 131

45.

130

I. G. of Customs view.

h)

China should grant Hongkong manufactures

privileged factory treatment.

1) The amendments in November draft are not ex-

cessive in view of exceptional facilities

offered.

45. Mr. Maze takes the view that:-

a) The new tariff has given an immense impetus

to smuggling, which may lead to undesir-

able friction.

b) China is therefore compelled to tighten up

her preventive service.

c) She cannot do this effectively unless the

Customs are allowed to function freely at

Hongkong, thus shortening the preventive

line round Hongkong.

d) China's desire to limit inland navigation to

Chinese-flag vessels from Hongkong is natural

in view of her declared policy, which would

inevitably mean in the long run that British

vessels on the coasts and rivers of China

would come under the Chinese flag.

e) Even this limitation is more of a conces-

sion than it looks, seeing that, once coastal

trade privileges are withdrawn from foreign

flag vessels, direct inland trade to non-

open places will be permissible only to

Chinese-flag vessels, while, without

some agreement of this kind, even Chinese-

flag vessels coming from Hongkong, a

foreign port, will be debarred from such

privileged trade.

f) The concessions offered to Hongkong in

/regard