1
(This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.
FFERENCE
449
CHIMA
Decypher.
Sir R. Macleay. (Peking).
January 6th, 1926.
D.
R.
12.5 p.m.
9.00 a.m.
January 6th, 1926.
January 6th, 1926.
No. 1.
Your telegram No. 381.
Your proposal to revert to pre-1912 customs system and to drop any debt consolidation by confer- ence appeared to us dangerously destructive in existing conditions; see my telegram No. 2.
Debt consolidation has been regarded since the start by all parties to conference including chinese as an essential object and we have, in accordance with your instructions, acquiesced in this speculation; at the same time we have kept likin abolition and compen. sation to provinces to the front in spite of indiffer- ence or worse of other powers. If we now oppose debt consolidation the hope of carrying any likin dues plans would be remote. Such action would probably lead to breakdown of conference resulting in revival of demand for unconditional tariff autonomy and
practically repudiation of foreign debts. Incidentally we should lay ourselves open to a charge of bad faith.