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3.

With regard to Missionaries I would suggest that,

instead of taking away right to acquire land outside

concessions the right should rather be given to everyone.

Valuable evidence as to the necessity or otherwise of

retaining concessions would then be afforded by the treatment

accorded to such purchasers.

4. In the matter of Tariff taxes in China are levied in many

other important ways besides on goods. The perils of tariff autonomy are (a) unsound taxation (b) actual secret discrimination either deliberately or due to bribery (c)

tariff wall against the most important British imports e.5.

cotton goods at present and machinery in future. It should be stipulated if tariff autonomy is given that any new tariff must be prepared with expert advice.

No comments on 5, 6, 7 and 8 but as to 9 Anglo Chinese

it is regarded here as most important that reasonable

methods should be devised whereby anglo Chinese can divest

themselves of Chinese nationality if they so desire; and that

a point be fixed at which Anglo Chinese shall cease to possess dual nationality and become purely British. The third

generation is suggested.

To conclude. Our opinion is that British proposals

proceed too fast and that the fact is not sufficiently

recognised that China is so unsettled at present and its

standard of civilisation unfortunately differs so widely from

ours that grave risk exists in allowing its various

governing authorities the power over British subjects which

the proposals of His Majesty's Government involve.

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