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concerned with protecting their e revenues and are not honestly desirous of operating on lines we have suggested. It would have been more consistent with genuine desire for a satisfactory solution of difficult questions if they had stated fully their difficulties and requirements without at the outset laying down any rigid preliminary conditions.
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Lloyd has just submitted to Osborne the outline of a scheme which will meet latter's difficulties as set out in a statement furnished by Osborne while all stations within the limits of the Colony and all preventive measures within such limits are retained to Hong Kong. We would be prepared to agree to Chinese Maritime Customs liaison Officer being placed at each such station and if
? desired to allow him (corrupt group) actual collection of dues, adeaus adequate provision being made by Hong Kong so far as can be done legally (negation) of penalties in the event of non-payment. I understand that this scheme is being submitted to me by Kowloon commissioner for consideration. I am sending you a copy.
If you concur I shall be glad of any assistance you can give in impressing on Maze that eminently reasonable nature of our proposals which, while preserving our rights in Hong Kong, will entirely meet the diffi- culties on both sides.
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