CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 484

COPY.

(F 3099/37/10)

CONFIDENTIAL.

Dear Mr. Stephenson,

8th May, 1930.

521

I mentioned in my letter of the 6th instant that

Lampson had informally handed me a copy of Hongkong's amended

draft of the Agreement, drawn up last November. It is an

astonishing document and affords no basis whatever for dis-

cussion, as it is a radical alteration of the terms which the

Hongkong Authorities themselves agreed upon last July. I have

caused a table to be prepared showing where the new draft

differs from the original (printed) draft, and I append hereto

a copy of this table for reference. Perhaps I ought to invite

attention to the following general observations:-

(a) It is, for instance, hardly to be expected that the Chinese

Government would agree to the excision of the Salt clause

(Article II). So long as the Customs Administration is

under orders of the Government to search for and prevent

the smuggling of Salt, so long will a Salt clause be

necessary in a Customs Agreement.

(b) Again, if the inclusion of Article V, in the July 1929

draft dealing with Inland Waters privileges, was unaccep-

table to the Chinese Government, the terms in which it now

appears in the Minister's draft will only render it doubly

No Chinese Government could possibly agree to grant

to Hongkong conditions of Inland Waters trading which even

at present are denied at the Treaty-ports.

50.

(c) Further; is it not fantastic to expect that the Chinese

Government should allow goods under Chinese Customs

documents passing through Hongkong from one Treaty-port

J.W. Stephenson, Esquire,

London.

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