CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 135

134

47.

p)

Customs in Hongkong demands any sacrifice

for which compensation om fairly be

demanded.

Considerations of high polioy must rule

where no sacrifice of local interests is

Views of H.M

49.

Consul-General

Canton.

a)

involved.

q)

x)

The draft of last July with the total omi8-

sion of Articles 5 and 6 (inland navigation) Article 10 (privileged factory treatment)

was not in July draft - should form the

basis of negotiation.

First of all, amendments in Hongkong

November draft should be communicated to

the Inspector General of Custom and Sir

Miles Lampson should discuss the question

with him.

Mr. Moss takes the view that:-

bl

(0

He favours the modification proposed by

the Chinese.

If the Agreement were followed by the

exclusion of the British flag from inland waters, the probable result would be that Hongkong British-flag steamers on Kwangtung inland waters would transfer to the Chinese

flag voluntarily in order to obtain the sam

British privileges as their competitors.

shipping in the district would then be con-

fined to sea-going ships and bona fide

British river steamers, plying exolusively

between Hongkong and treaty ports.

This situation would not prejudice trans-

por t

of British goods, which could be /carried