CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 257

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47.

p)

Customs in Hongkong demands any sacrifice

for which compensation om fairly be

demanded.

Considerations of high policy must rule

where no sacrifice of local interests is

Views of H.M.

49.

Consul-General,

Canton.

a)

involved.

q)

r)

The draft of last July with the total omi§-

sion of Articles 5 and 6 (inland navigation)

Article 10 (privileged factory treatment)

was not in July draft should form the

basis of negotiation.

First of all, amendments in Hongkong

November draft should be communicated to

the Inspector General of Customs and Sir

Miles Lamps on should discuss the question

with him.

Mr. Hosa takes the view that:-

b)

c)

He favours the modification proposed by

the Chinese.

If the Agreement were followed by the exclusion of the British flag from inland waters, the probabļe result would be that Hongkong British-flag steamers on Kwangtung inland waters would transfer to the Chinese flag voluntarily in order to obtain the sam

British privileges as their competitors.

shipping in the district would then be con- fined to sea-going ships and bona fide British river steamers, plying exclusively

between Hongkong and treaty ports.

This situation would not prejudice trans-

port of British goods, which could be

/carried