CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 252

251

SECTION 3.

42.

Hongkong Govern-

ment.

Summary of Arguments.

44. The Hongkong Government takes the view that:-

a) It is the Chinese who have all along

pressed for the agreement.

b)

To allow the Chinese Customs to function

freely at Hongkong is to grant an extra-

ordinary privilege, fraught with considerable

risk to the administration of the Colony.

c) Exceptional concessions must be given in

return, to make it a good bargain.

d) It would be a good thing to conclude an

agreement of this kind to remove any grie-

vance on the score of smuggling, which cer-

tainly exists, but this fact alone is not

sufficient reason for making an agreement.

e) Rights of inland navigation for British-

flag vessels from Hongkong to non-open ports

in the two Kwang provinces are essential.

f) The British and Chinese merchants in Hong-

kong are alike opposed to deletion or modi-

fication of the disputed Article 5, owing

to the risks run by vessels under the

Chinese flag. The offer of inland naviga-

tion rights to Chinese-flag vessels only is

considered as merely an intelligent anti-

cipation of an event that is bound to come,

and therefore no real concession.

g) The salt clauses are unnecessary, as all

that China is concerned with is that Hong-

kong should promise to take steps to pre-

vent the illicit entry of salt into China.

/n)