CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 243

24.2

33.

1

To Shanghai Tel.No. 366 Dec.2.1929 (p.25 in 5Y).

Position of kacao. Interview with Portuguese chargé (p.27 _in_5)

illioit entry of salt (it will be remembered

that the question of control of the illicit salt

traffic was the main reason why the Chinese de-

sired the agreement originally). A new article

(Article 10) was also introduced giving ilong kong

manufactures privileged factory treatment in China.

Article 9 was re-cast to give further privileges

regarding goods transiting Hongkong. These various

amendments were not considered an excessive guid

pro uno in view of the extraordinary privileges

to be granted to the Chinese Customs, which were

fraught with an appreciable measure of danger to

the administration of the Colony. On receipt of

this despatch the Minister telegraphed to Shanghai

asking the opinion of the Chamber of Commerce as

to what effect rigid insistence on Article 5. and

ita certain refusal by the Chinese, would have on

British shipping interests in China generally, and

suggesting deletion of this article altogether, in

view of a prejudice to our commercial treaty nego-

tiations if we accepted the Chinese version. His

Majesty's Minister feared that the extension of

privileged factory treatment to Hongkong would only

increase the feeling in China of the assimilation

of Hongkong to a Treaty Port. In view of the

probable seriousness of the smggling problem,

would it not be as well to conclude the agreement

without either Article 5 or Article 10?

34. The Minister saw the Portuguese Chargé

d'Affaires on the subject on wecember 6th, and

gave him an account of the present position of

/the