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TAKŠĒJO OBĽ
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unfavourably on Hong Kong. (a) That such a step will not
save the Customs administration because Canton will
continue its independent collectorate and similar sotion
is likely to be taken by the south at Hankew, see Lampson's telegram No. 23. (d) That a thoroughly bad precedent will be created by condoning illegal taxes admittedly originated in order to liquidate ante-British boycott. (a) That the south will probably retain their production and consumption taxes and celleation of the Washington surtaxes in addition
Chen has already hinted this.
172
3. In an experience of China extending over twenty Seven years and including the Boxer year, I have never
known a time less suitable for abandoning treaty rights and
I would urge that the treaty revision should not be
attempted until regional recognition is achieved. Present
moveệment) in China is less nationalist than anti-foreign and the first step, therefore, is for the Powers to agree
what treaty rights they are prepared to defend by force if
necessary. One such common interest would be, I presume,
the maintenance of the maritime Customs.
4. If, therefore, as seems probable, Japan and the other Powers object to the unconditional grant of the Washington surtaxes now I recommend that we should strongly
press alterative policy making joint protest already made against illegal Canton taxes really effective by a show of
force if necessary while at the same time declaring that
we are prepared to negotiate the recognition of any
regional government in China which will suppress anti-
British manifestation in the territory it controls and will
respect the existing treaties pending their revision by
negotiation in due form. Ende. Repented to Canton and
Paking telegram Be. 31 of the twentieth.
S