iz
(2)
once collected, whether exercised by Inspector General or diplomatic body, would cease, thus meeting13 condition laid down in last sentence of your telegram
No.49. We hope that the necessary safety of funds would still be obtained by custodianship arrangements acceptable to Chinese.
4. It is (grp. undec.) imposition of further charge for debt service on customs, as one of the conditions of an increase, will augment and prolong foreign financial interest in those revenues. We
believe this to be inevitable unless conference breaks down or China repudiates her debts, while our plan would have the advantage of increasing Chinese financial interest pari-passu.
We think imposition of further charges is more
likely to diminish than increase risk of civil war
by reducing amount of free money. Further we believe
that so long as China remains in the present state
of disorder and disunion foreign powers will have to
intervene in the event of attacks on the customs
administration in order to make continuance of foreign
trade possible. If this is so, existence of foreign
financial interest as ground for intervention is surely
advantageous rather than otherwise. It need not
in itself commit His Majesty's Government to any
further intervention than they would in any case wish
to undertake on behalf of the vital commercial interests
at stake.