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of the Customs authorities would also be necessary and this could only be given by the Inspector General Peking after consultation with all Treaty Powers. On the other hand refusal of Custome would also render proposed taxation scheme nugatory.

If we were to submit to the proposed taxation while other Powers do not the result would merely be to impose taxation only on the British and to continue in another form the illegal exactions of the boycott,if however refusal of the Customis

authorities or of other Powers contrives to render the new taxation impracticable this in turn would doubtless be regarded as an acuse to continue the boycott. It will be observed that the quid pro quo for the Washington surtaxes (i.e. the abolition of likin) is not even mentioned and I was told some time ago by Hayley Bell that the Canton Goverment did not intend to take any steps for the abolition of likin. This proposal of Chens I consider entirely insincere.

Bell suggests that our action now would be in support of certain militarists against Canton. This would not be the case it would be merely a counter-blow to the attacks made on ourselves by the Bolsheviks attacks which the present Canton Government certainly know all about and in which I believe they cooperate whole-heartedly. The Communists and Russians are now detested in Kwangtung Province and risings against the Government have already occurred in several districts In these circumstances our action would not I consider leave any legacy of hate. That our action is not in support of any particular militarist but is for our own protection is clearly shown by the incident at Manhsien. British influence cannot be expected to reassert itself at Canton until the policy of the Canton Government is no longer dictated by the Russians. The latter would probably go after the collapse of their anti-British intrigues at Canton and when they do Hong Kong and Canton will speedily resume normal friendly relations.

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