CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 254

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44.

Shanghai Chan- ber of Commerce's

view.

F. O.'s

views.

46.

regard to the trandt trade are considerable.

The Shanghai Chamber of Commerce view is that:-

a) The exclusion of the British flag from Article

5 means that the Chinese Government will

secure in Hongkong "treaty port" status, with-

out conceding treaty port rights to the

British.

b) This proposed modification will form a pre-

cedent for exclusion of the British flag from

Chinese coastal waters elsewhere.

c) The total omission of Article 5 might be con-

sidered tantamount to an admission that the

Chinese Government had the right to function

in Hongkong on its own terms.

a) The functioning of the Customs at Hongkong

would to all intents and purposes give the

Colony a Treaty Port status which should auto-

matically include inland navigation rights.

e) Privileged factory treatment is a paper con-

cession only, worthless in practice.

f) There would be no reaction detrimental to Bri-

tish interests in China should China refuse to

accept the Hongkong draft and Hongkong refuse

to alter it.

47. The views of the Hongkong Chamber are apparently

in line with those of the Hongkong Government.

48. The Foreign Office takes the view that:--

a) The Governor of Hongkong ignores the wider

implications of the agreement.

b) The functioning of the Chinese Customs at

Hongkong would serve the double purpose of

/removing