CO129-531-15 Chinese customs- proposed agreement with Hong Kong 9-7-1931 - 17-1-1932 — Page 98

98

-General of Customs to allow the matter to develop al ong

these lines, and to instruct the Kowloon Gommissioner,

wr. Osborne, to initiate discussions with the represen❤

tatives of the Government of the Colony.

3.

Although the atmosphere surrounding the ques-

tion had not been improved, either by a misleading as-

count of the Hongkong attitude published by the Kuo kin

News agency early in y, or certain leading articles of

a provocative nature in the "North China Daily News"

later in the month (see my despatch Number 767 of June

10th last), the Inspector-General of Customs finally

agreed to allow kr. üsborne to collaborate informally

with Mr. Lloyd in the endeavour to evolve a scheme accep

table to both parties, on the understanding that anythin

to which ar. úsborne might agree would not be held bind-

ing on Mr. Haze and that Mr. Osborne would be told at

the outset that China could never agree to the inland

water and privileged factory treatment previously demand

ed. I informed Sir William Peel of this decision, and

expressed/