[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.]

7

149

CHINA

Decode.

Sir M.Lampson,

(Peking),

February 23rd 1927.

D.

10.50 p.m.

February 23rd 1927.

Ro

9.0 a.m.

February 24th 1927.

No.323.

(R).

Important.

My telegram No.204.

I called by appointment at Wai-chiao-pu on

February 21st to receive Peking government's answer

to our treaty alteration programme.

Doctor Koo whose attitude was far from showing

any gratitude to us commenced by saying that our offer

whilst going part way to meet China's wishes dealt

with specific questions only. He would on the

other hand prefer to see problem dealt with on broad

question of principles involved. China's aims were briefly - (1) tariff autonomy (2) abolition of extra- territoriality (3) abolition of inland navigation

including coastal trade, and he would like discussion

to be along lines of principles underlying each. As

a practical man he would admit that there would have

to be stages.

I pointed out that tariff autonomy had already

been covered in principle in British policy memo-

randum of December 18th provided that there was a

national tariff. I could not however commence dis-

cussion on basis of his three principles as my

authority was confined to programme communicated to

him

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