This Document is the Property of His Britannic Majesty's Government, and should be
raturned to the Foreign Office if not required for oficial use.
CHINA.
Decypher.
Sir R. Macleay,
1.
(Peking). 22nd June 1926.
5.55 p.x. 22nd June 1926.
R. 8.20 p.m. 22nd June 1926.
No. 46.
Conference.
213
My telegram No.44.
Although es a result of conference discussions Japenese delegation were willing to meet our views to the extent represented in draft surtax agreement, Japanese goverment are evidently determined not to budge from their original attitude that bulk of Washington surtax proceeds should be used for debt. They no doubt hoped that difficulties involved might continue to delay agreement amongst other Powers and recent press campaign may have been designed to throw the blame for this delay on to our shoulders. Having been at length forced to show their hand I think that they still hope their drastic modifications of draft may not prove ac- ceptable to us and other delegations and that in the event of this proving to be the case they will be in a position to give Chinese to understand that they were willing to grant surtaxes and are not responsible for failure to reach agreement.
Americans are indignant but are so anxious to be able to say that Foreign Powers so far as they are con- cerned have completed preparation for grant of Washing- ton surtaxes that they seem ready to accept almost any
conditions...