CO129-542-12 Smuggling from Hong Kong into China 21-1-1933 - 21-8-1933 — Page 71

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consider should also be consulted.

You should inform the

firms of the satin already taken as set out in the en-

closures to this despatch and you should explain to them my view of the position sa described in the preceding paragraphs. You should also point out that in any case it will be necee-

sary to refer to the Foreign Office for instructions before taking the matter up officially with the Chinese Government shold the firea desire to see this done.

9.

In case the question of the Joint Inves- tigation Rules should came up in the coures of your discus- sion with the firms, these rules, as you are aware, vare drawn up to meet the case of breaches of Customs regulations by Bri- tish merchants under the relevant articles of the Treaty of Tientsin exposing them to fines and their goods end vessels

The rules have, I boli ve, seldom been re-

to confiscation.

sorted to in practice, and were in the nature of a provision- al arrangement rather than a definite agreement, never having been formally accepted by His Majesty's Government.

Osn-

not, therefore, in my opinion, object to their unilateral

abrogation by the Chinese Government;

and if we take the

ter up with the latter, we should have to be prepared to go back to the provisions of the Tranty as they stand.

10.

I would add in conclusion, with reference

correspondence with Bir P. Mare,

to the earlier phases of the

that it is of course not so such the precise terms of the An- nual dusrantee Bond which are in question as the principle of

/ the