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310

In Chen's letter of September the 18th the removal of the boycott is not exátessly made conditional on such taxation. (b) The taxation proposals appear to be nothing more or less than an attempt to abrogate the so-called Angke

unequal Treaties without the consent of the Treaty Powere.

(c) The proposals require the consent of the Chinese Maritime Customs. Should such consent not be forthcoming the Canton Government would xiitin doubtless take steps to establish its own Custom House.

(d) The imposition of new taxes would be contrary to Treaty and Canton Government could presumably increase taxes at pleasure. The proposal really amounts to grant of tariff autonomy to Canton.

(e) Canton Government would doubtless divert the proceeds of the taxes to its war chest end would doubtless derive substantial assistance therefrom in the anti-northern campaign.

(f) It is to be expected that the Canton example would be followed by other war lords and similar taxes would doubtless be imposed on the Yangtse and at the treaty ports in the north,

(6) It seems clear that the proposal concerns all the powers signatory to the Washington Treaty.

(h) The boycott itself is the defiance of our treaty rights and no quid pro quo is offered except its removal.

The

Canton Government believes that it has discovered a highly successful weapon in the boycott and if we allow concessions to be extorted from us such as no Chinese Goverment has hitherto obtained the Canton Government will of course be confirmed in the belief. If therefore we now acquiesce in

their

αι

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