CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 245

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35.

Governor defends Hongkong attitude,

(p.30 in 5Y)

F.C. favour agree- ment with Chinesc amendment of inland navigation clause.

authorities would endeavour to carry out the

necessary preventive measures on behalf of the

Chinese Customs had found some support, though

the Governor had negatived a motion to discuBB

it. Mr. Moss feared that any agreement between

the Manking Government and Hongkong, without the

consent of Canton, might not be conclusive, as it

would profit the national exchequer through the

Customs at the expense of the provincial treasury.

So far the Canton authorities were adopting a

negative attitude. Mr. Moss also remarked that

the immediate conclusion of an agreement was pro-

bably not so urgent a problem as Mr. Maze wished

us to believe.

36. The Governor telegraphed on December 13th,

observing that it was the Chinese who had pressed

for the revival of the agreement, that the Chinese

Goverment had been ready to sign a similar agree-

ment (including the disputed Article 5) in 1917,

when much more limited facilities were being

offered to the Customs in return, and that if

China would not reciprocate in the bargain, the

whole question would have to be dealt with on

other lines (see preceding paragraph). Exceptional

concessions demanded exceptional concessiona

in return. A defeatist policy would of course

bring defeat.

37. On October 18, in reply to a query from the

0.0. as to whether they agreed to the conclusion

of an agreement on the lines proposed by Hong-

kong, the Foreign Office replied that they were

all in favour of it, and expressed the view

/that