(4)
hink whey would resent the new policy we are dis- cusɛing?
(b) Attitude of Provinces,
404
Your view is tet provinces are already getting more than their due share of revenue, that their only real grievance is the almost negligible one of transit pass dues, that present system is not generally regarded as inequitable and that there is no general genuine demand for distribution of customs revenues or immediate threat of seizure. Our criticism of this is that it seems prima facie to under-estimate the significance of Canton and what it stands for (see above) and hardly accords with your telegram No.282 of 1924 (Chang Tso Lin), yourdespatch No.843 of 1925 (Wu Pei Fu) and your telegram No.11 and paragraph 2 of Canton telegram No.2 of this year. Are you still convinced that you are right? If so, it obviously radically affects our whole proposal and shows that we made it under an entire misconception of internal political situation. We therefore wish to be absolutely clear on this point which is fundamental.
To sum up, the fact that China is in a position to exact concessions from the powers at a time when she is less than ever before in a position wisely to use them no doubt makes any policy a choice of evils. you see great dangers in our policy, we fear even greater from the longer point of view in yours.
healthy develop-
-
We had thought that ours might promote
ments, perhaps in the distant future. We fear yours
may