CO129-531-15 Chinese customs- proposed agreement with Hong Kong 9-7-1931 - 17-1-1932 — Page 103

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satisfactory agreement might precipitate an agitation

for the recovery of the leased territories. I replied

on these points from Pei-tai-ho (in my telegram Number

543 of August 27th) that I thought it would be quite use-

less to consider the linking up of the Customs question

with the future of the leased territories, and that there

was not the remotest chance of striking a bargain on the

subject. An opportunity might ooour for dealing with the

matter during the next 60 years, but in the meantime it

would be most unwise to risk stirring up trouble by rais-

ing the question now. i did not think that failure to

reach an agreement would lead to an agitation for the

recovery of the leased territories, which would probably

come, if it came at all, irrespective of the Customs

question. It might lead to a certain measure of irrita-

ting Customs pressure round the Colony and thus tend to

promote ill-will between the Hongkong and Canton auther-

ities, but I doubted if there would be any serious reper-

cussion on British interests generally. I was not in

position/