14
(2):
disappearance of Imperial régime,
22
He emphasized again
and again that under existing conditions in China if revenues were handed over to superintendents, funds
would be almost entirely seized by militarists (who controlled superintendents) resulting in complete
collapse of customs finance, He scouted possibility of safeguarding old obligations under such conditions. He pointed out that under old (group omitted) customs revenues were not definitely remitted for specific purposes to Peking as such but were merged in general revenues of Chinese government accruing from taxes and tributes out of which loan and indemnity payments were made; earmarking of customs revenues as Becurity for loans and indemnity had been paper arrangement only translated into actual fact by arrangements of 1912 when necessity arose; he said that financial machinery of empire was now utterly destroyed and if we reverted
customs to pre 1911 customs system of paper security, revenue would be worthless. While strongly contesting view that present Canton situation was in any way related to customs surplus question or that our diffi- culties in the south could be solved or even seriously affected by conference, he did not dispute possibility of Canton repudiating conference treaty and laying hands on increased revenues. On being informed that His Majesty's Government would under no circumstances sanction use of force to protect customs revenues, concurred in our view that all we can do at present is to bear in mind importance of satisfying ourselves as far as may be possible before any treaty is concluded
that
he
!