440
A
2.
tax) is limit which can be prudently imposed as an interim measure from the point of view of reveme production.
Best Chinese opinion is by no means averse to maintenance or even strengthening of the present Customs régime and we are of opinion that even an indirect strengthening such as likin compensation collected by Customs but allocated to provinces coupled with measures for protection of funds allocated to consolidate debt which will be held largely by Chinese will benefit China as a whole,
It is to be borne in mind that practically the whole yield of any surtaxes likely to be granted during interim period will be absorbed by provincial allocations for likin compensation and by debt service. So far as we can judge provinces will not recent tariff increases in them- selves. They probably think that the foreign trader and not the consumer pays while in any case as they show by their own actions they are indifferent to imposition of burdens on the tax- payer. Recentment is likely therefore only to be provoked by creation of three surplus Customs revemes available for the sole benefit of the Central government. This situation may arise when tariff autonomy is due and foreign powers in framing their policies towards China may then have to face the dilemma that if as a result of tariff autonomy substantial surplus accrues to Central
government
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