deal with debt consolidation at all, and they consider that if the consolidation schemes drafted by the foreign delegations impose too strict a control over Chinese revenues a deadlock may arise, for the Chinese, though willing to devote a portion of their revenues to debt consolidation, will not consent to the inclusion of a detailed scheme in the body of the treaty, and will not submit revenues. His Majesty's to the extension of foreign control over the Government, after full consideration, are, however, ready to agree to any reasonable scheme for dealing with the unsecured debt advanced by the Chinese and accepted by the foreign delegations, but they cannot associate themselves with any attempt to force upon the Chinese foreign control over the revenues required for that purpose. Such a course seems to them to be fundamentally opposed to the traditional policy of the United States towards the Chinese. and His Majesty's Government believe that the State this subject. His Majesty's Department will share their anxiety on Government for their part have been driven to the conclusion that to insist on guarantees for li-kin abolition, to which they once attached importance, might postpone indefinitely the liquidation of the Washington promises; and they equally consider that to subordinate the fulfilment of those promises to the imposition upon China of a debt consolidation scheme would be contrary to the intentions of both Governments. They therefore think that if any reasonably satisfactory assurances are given by the Chinese Government as to the use which it proposes to make of the new revenues the Powers should accept such assurances and authorise the levy of the surtaxes, and they are confident that a policy so closely in accord with the friendship always displayed by the United States to China will be fully supported by the United States Government.
Interim Surtaxes.
72. The experts of the foreign delegations other than the French have now agreed upon a draft schedule showing the articles upon which the interim surtaxes ranging from 24 per cent. to 221 per cent. ad valorem might be respectively levied. These surtaxes would be applicable from the coming into force of the treaty now under negotiation until the application of the Chinese National Tariff Law. The schedule follows the general lines of a schedule submitted to the foreign delegations by the Chinese delegation and is believed to be favourably regarded by the latter. The British delegation consider it to be in all the circumstances not unfavourable to British trade. The adoption of the schedule is in large measure due to the able and persevering efforts of Mr. K. D. Stewart of the British delegation. The French delegation still decline to accept the principle of graduate duties and propose instead two scales of surtaxes only, namely, 7 per cent. and 15 per cent., except that upon special classes of goods unable to bear heavier duty a surtax of 21 per cent only will be levied.
Foreign Office, May 31, 1926.
F
Tr.
1926
70 7.2556/8/10
CIRCULATION :-
35. U.S. of S.
U.S. of S.
wP U.S. of 5.
cretary of State.
Previous Paper
Fo. 12780
HOA HỒNG
DATE
24 in June
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C.12917
25 JUN 1926
Anniese Special Antones Jariff
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