CO129-531-15 Chinese customs- proposed agreement with Hong Kong 9-7-1931 - 17-1-1932 — Page 93

borginal repo

on 83018/2/3!

(- Eastern Catetships - Transfers between

Eastern bolonés)

3

EXTRACT FROM LETTER FROM SIR WILLIAM PEEL TO MR. ELLIS

DATED 1st DECEMBER, 1930

93

So far as I can make out, the

It is very disappointing, after all the trouble

that one had taken to arrive at a satisfactory agreement,

that the Customs Agreement has been turned down for a

time at all events by the Central Executive Council.

As I had come to an agreement with Maze, with the concurrence

of T.V. Soong, I never anticipated that it would fail to go

through. Of course, it is entirely a matter of "ramp" in

connection with the smuggling graft that exists among

officials in Canton, and also in connection with the pro-

posed free port of Chungshan.

latter is an entire fraud and is simply being exploited for

thepockets of certain people. However, I hear that Maze

expects that they will have to confirm the agreement some

day, and that is my own opinion. In the meantime, in a

sense it has put us in a very strong position. We have

shown out willingness to meet them, and to make provision

for checking such smuggling as may take place through

this Colony. We put up a scheme which was accepted by

their most important advisers concerned, and it is

entirely their fault if they fail to take advantage of

it. As things stand, we can just wait until they have

a better appreciation of the position.