[This Document is the Property of His Britannic Majesty's Government, and should be
returned to the Foreign Office if not required for official use.]
Decypher.
From CHINA,
Sir M. Lampson (Nanking) on tour.
13th November 1930.
D. 6.10 p.m. 18th November 1930. R. 3.40 p.m. 13th November 1930.
No. 235.
89
Hongkong Customs agreement.
In informal conversation with Minister of Finance
on November 17th at president's reception he told me that this had come up that day before central executive commit- tee and that despite his strong argument in favour meeting had decided definitely against signature on the ground that agreement would darage Canton. The grant to Hongkong of customs facilities enjoyed at a treaty port as regards non-taxation of goods in transit had led committee to re- ject it despite all that he had urged to the contrary. Frankly he regretted this extremely but in the circumsten- ces (and this he repeated twice) the best thing was "to let the whole idea drop" for the time being.
I pointed out that this was most regrettable after all the work and effort on both sides. He admitted all this but repeated that there was no help for it. So now China would just have to institute her preventive service and (as he remarked) learn from experience that it was not workable.
In the circumstances I shall not press the matter beyond if occasion offers (but not otherwise) drawing from Minister for Foreign Affairo some more formal statement of Chinese attitude. I made it clear to Minister of Finance that Hongkong govemment had gone a long way to meet Chinese wishes- indood further than was desired in some quarters - and that I should not personally be pre- pared to press them to make any further concessions.
Addressed to Foreign Office No.235, of November 13th. Repeated to Peking and Hongkong.
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