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NO SECRET (2)

10378

Sir,

GOVERNMENT HOUSE,

HONGKONG. 14th June,1926,

68

On the 20th May you telegraphed to me referring

to telegram No. 35 of the 15th May from His Majesty's Minister

at Peking to the Foreign Office and inquiring whether I hav

any observations on the draft surtax agreement. Neither I nor

His Majesty's Consul veneral at anton had received a copy of the telegram in question or of the draft surtax agreement. 1, there-

fore, telegraphed to Sir R.Macleay for copies of these documents and on the 3rd June he telegraphed to me the following summary of the draft agreement embodied in his telegram No. 35 to the Foreign Office:-

For the purpose of giving effect to the relevant articles

" of the Washington Treaty, Powers agree three months after

signature of agreement Chinese Government shall levy

uniformly on all land and maritime frontiers a surtax of

* 24% on all imports and a further surtax two and a half per

"cent on certain imports listed on schedule annexed thereto.

Transit pass fees at present credited to the

Central Goverment shall be distributed through

the Maritime Administration to the authorities

in provinces concerned. By way of compensation $5,000,000 will be credited from dashington surtax collections to ordinary customs revenue.

(2)

-

(1)

N

THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.M.S.AMERY, M.P.,

&C.? &c.,

&c.

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