This Document is the Property of His Britannic Majesty's Government, and should be
returned to the Foreign Office If not required for official use.]
339
CHINA.
Decypher.
Sir R. Macleay (Peking),
23rd September, 1926..
D.
3.40 p.m. 23rd September, 1926.
R.
5.45 p.m. 23rd September, 1926.
No. 331.
076
Inmeliste.
Your telegram No. 270, last paragraph.
I submit further observations on question of
taxation raised in Canton offer.
1. New consumption taxes which Cantonese threaten to introduce differ from those hitherto imposed at Canton and elsewhere in that they are apparently to be made completely effective by being levied at moment of importation with assistance of customs who are to clear papers only on production of tax receipts. Acting Inspector General has so far heard nothing of Cantonese intentions on this latter point but if this is done tax becomes an increase or surtex on import (and export) duties and equivalent in every way to proposed Washington Bur-
taxes.
2.
Acting Inspector General cannot say what attitude customs will adopt pending reference to Sir F. Aglen to whom he is telegraphing and whom
But in view of Inspector you may wish to consult. General's attitude as reported in my telegram No.42 Conference of November 2nd he may decide to bow to force majeure and accept instructions from Canton
Eovernment