CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 228

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SECTION 2 (b)

18.

Drafting of Customs Agree- ment in con- nection with Canton-Kowloon Railway Agree- ment.

F.0. to Peking No. 394 of Nov. 11, 1910 (in Canton-Lowloon My. Dossier 42, 1910).

15.

During the years 1910-11, when the Canton-

Kowloon Railway Working Agreement was being

negotiated, the question of a Customs Agree-

ment also came to the fore. The moving spirit

in the matter was the Commissioner of Custome

for Lowloon, Hr. A.H. Harris, and his chief

concern appears to have been to put a stop to

the considerable loss of revenue osused by

the smuggling of salt. The Hongkong Government were under the impression that the

Chinese were very anxious to obtain the right

for their Customs to function in the Colony,

and that in return for this right they might

be more accommodating over the Canton-Kowloon Agreement. The Hongkong Government proposed therefore to negotiate the two agreements sim-

ultaneously, and to use the one as a lever for the other. His Majesty's Government did

not, however, approve of this suggestion in October 1910, though the F.0. agreed with the

0.0. that, in view of its technical nature, the Customs agreement had better be negoti- ated at Hongkong between representatives of the Colonial Government and the Customs, but that it was to be understood that the Lega- tion were to be kept fully informed and that the signature of the final agreement was to

take place at Peking.

16. In May 1911, when the Canton-howloon Railway negotiations were making no pro- gress owing to the Chinese dislike of the principle of "joint management", the

/Governor