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No.2 on 72751A.
Customs Department would be repayable to the
Colony by the Chinese Government, and China
would also agree to accord to Chinese produce
in transit through Hong Kong its original
status on the lines of the privilege which had been included in the earlier draft Agreement.
A scheme on these lines is now, with
the approval of the Secretary of State, being
worked out, but we have told Hong Kong that if
China does not accept such a scheme it may be
necessary to return to the question of permitting the Chinese Customs to operate their own
service in Hong Kong waters in view of the
wider Eritish interests in China which are
involved in an agreement. In the meantime
the contemplated visit of Mr. Maze to Hong
Kong is being deferred.
It was decided by Dr. Shiels and Mr.
Dalton that in collaboration with the Foreign
Office we should not let the question rest,
but should again bring to the Governor's notice the desirability of reaching an agreement, and that His Majesty's Minister should be asked
by the Foreign Office to press again on Mr. Maze the desirability of arriving at a working
arrangement with Hong Kong. It is time that
we heard again from Hong Kong regarding the details of their new scheme, and we can now
take the opportunity of asking the Governor by telegram whether it is ready, and reminding
him in the sense directed.
M Sat.
24/7
P.S. After dictating the above, I had a noct from Mishenton, Ilnofficial manner of Exec.
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