311
(3).
(compare attitude of Americans towards Canton oil tax
as reported in my telegram No. 326).
6. Following courses would appear to be open
to us,
A.
namely:
To shut our eyes to levy of new taxes with result indicated in paragraph 3 above.
B. To lodge e formal prom
test in which case Brenan might reply to Minister for Foreign Affairs taking due note of declared intention of Cantonese government to terminate boycott but adding that we cannot adndt their right to levy new taxes except as result of negotiations with treaty Powers; such a protest unless backed by force will probably remain ineffectual as other protests have
done.
C. To protest and if other principal Powers concerned will co-operate back our protest by insist- ing if necessary by force on treaty right of foreign imports to pass through customs on payment of exist-
this would of course still ing import duties only;
collect their consumption
leave Cantonese free to taxes by other and less effective means (as they do at present in the case of certain articles such as
wines and oil).
D. To give Cantonese government to understand once boycott is raised and we are in a position to resume friendly relations with them we shall be pro- pared to enter into immediate negotiations with them for levy of new surtaxes by customs in accordance with arrangements contemplated at Washington on stipulation
•