CO129-558-11 Mission of Sir F. Leith-Ross to China- proposals for a Hong Kong - China customs... 29-9-1936 - 30-12-1936 — Page 75

C. O.

Mr.

75

Mr.

Mr.

Sir C. Parkinson.

Sir G. Tomlinson.

Sir C. Bottomley.

Sir J. Shuckburgh.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

foreigner, for long kept tariffs

comparatively low. The whole position

was, however, changed in 1928, with the

emergence of the Nationalist Government

with its avowed intention of abolishing

all treaties which limited Chinese

DRAFT.

FURTHER ACTION.

freedom of action more than was regarded as

compatible with her position as a

sovereign State. The first step was the

recognition of Chinese tariff autonomy,

and a treaty to this effect was concluded

in the winter of 1928-29 between China and

the British Commonwealth of Nations.

This is a short treaty and involves

(a)

the "right of China to settle

her customs tariffs in such

way as she thinks fit";

(b) reciprocal undertakings not to

charge one another's nationals

duties or taxes in respect of

goods higher than those paid

by nationals of the country in

question with a proviso as to

most-favoured-nation treatment.

This