CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 445

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To the conditions laid down in the Convention the East India and China Trade Section are informed there is universal objection in the Colony of Hong Kong, where the opinion obtains that these conditions will effectually hamper the development of trade and industry, which might otherwise have been confidently expected.

The Hong Kong Chamber are further profoundly convinced that the freedom of the port can only be properly safeguarded by the withdrawal of the Chinese Customs stations to Chinese territory, and the refusal of permission to the Chinese Customs officials to collect duties either in the Colony or its waters.

I am directed to inform your Lordship that the East India and China Trade Section of this Chamber are entirely in accord with the views expressed by the Hong Kong Chamber, and I am desired to express the hope that arrangements may yet be made between Her Majesty's Government and the Government of China by which the objectionable features of the arrangement referred to may be removed, and the Colony, with its enlarged area and its improved strategical and defensive condition, be enabled to reap the full advantage of the security obtained, and the development of commerce, which, as a free port, should become more and more marked.

MY LORD,

I am, &c.,

(Signed)

KENRIC B. MURRAY,

Secretary.

No. 382,

Sir C. MacDonald to the Marquess of Salisbury.

PEKING, September 21, 1898.

I have the honour to inclose herewith translation of a despatch dated the roth instant, which I have received from the Tsung-li Yamen, supporting a proposal of the Governor- General of Canton to make Regulations for the lease of the Hong Kong extension.

I forward also copy of my reply of to-day's date, pointing out the gratuitous interference of the Governor-General in a matter already arranged between Her Majesty's Government and China.

I have, &c.,

(Signed)

CLAUDE M. MACDONALD:

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INCLOSURE 1 IN No. 382.

Tsung-li Yomen to Sir C. MacDonald,

(Translation.)

PEKING, September 10, 1898.

On the 4th September Yâmen received the following communication from the Viceroy of Canton:-

"I am in receipt of the Yâmen's despatch, stating the agreement come to in connection with the British proposals for an extension, under lease, of the Colony of Hong Kong, and inclosing a copy of the map appended to the original Memorial to the Throne.

"I observed that the British Minister, Sir C. MacDonald, says that the extension is for the defence and protection of Hong Kong. Hong Kong lies very near to the province of Kwangtung, and alarm in this Colony would mean uneasiness in the province. China has therefore no objection to offer against anything that makes for the defence and protection of Hong Kong, and cannot but assist any means of the sort strenuously. The important questions involved in this matter referring to the non-removal of officials and offices, the retention of jetties, the planning beforehand of railways, the free movement of war vessels, and the non- confiscation of property, have all been arranged by the Yamen, and need not be discussed again; but after close consideration four other points occur to me.

"I. The Yamen's Memorial to the Throne speaks of 'tsu chang' (conditions of lease), and 'tsu chieh' (the Chinese usually employed for 'concession' or 'settlement). In the foreign text the extension should therefore be called a 'settlement."

"2. As official Yâmens are not to be removed, the custom-houses should also remain as before. This will accord with the promise in the original Agreement to lend every assistance in Customs matters. If the five custom-houses must all be removed beyond the limits of the extension, the Commissioner of Customs says that there will be a great extent of sea, without a commanding station, entailing heavy expenses in surveillance by revenue-cruisers. Further smuggling will be facilitated, and the yearly loss to the revenue will amount to a million and some hundreds of thousands of taels. The sole concern of the custom-house in the Settlement being the collection of duty, British interests will not be prejudicially affected. Moreover, as the Commissioner will constantly employ steamers and cruisers, the protection and defence of Hong Kong will be all the more fully provided for,

"3. Land in the new Settlement belonging to Chinese subjects should pay the usual land tax to the Chinese authorities. If this is all levied by Great Britain, then a rent must be calculated, the amount of which need not be considered now.

4. There is a great extent of sea included in the new Settlement. Setting aside the territorial waters of Hong Kong, which, being British territory, Chinese Government vessels must not enter to seize criminals, the search for and arrest of such in the new Settlement should be

1.

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