148

3.

raised, and his views will be communicated to you

in a further telegram. In paragraph VII of my

telegrams Nos. 36 and 92 I contemplated subjecting vessels registered for inland navigation to Chinese regulation as a preferable alternative to abandoning the right. Exclusion from the coastal trade would be a very severe blow to

British interests and if we are faced with the

alternative or withdrawing or submitting to Chinese regulations it might perhaps be possible to arrange that the enforcement of such regula- tions be entrusted to the Maritime Customs

Administration.

4. I approve your answer with regard to taxation. See my telegram No. 92 paragraph 1 D.

5. I approve your language in regard to

concessions.

Repeat to Tokyo, Shenghai for Commander-in-

Chief, Canton for Hongkong, Tientsin.

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