14

+ at the abortivi Tariffe

Confer. 2.2. 1 Jan 1929. Afl's It's dali then will

be las con

for mislána

September fell through owing to the domestic

difficulties of the Nanking Government it is

quite clear that an attempt will be made

sooner or later to increase the import duties

beyond the limits authorised, and to snatch

tariff autonomy before the date provisionally

+

In fact there is at this moment

agreed on.

a dispute between the Powers and the Canton

Government owing to the action of the latter even though the the confition, in conniving at a further (though small) increase i.e. the negotiation of a new ticaly

r the promulgation Ja national läriff di shṛ with not be fulfilled:

in the surtax. We know that if any further

substantial increase in the import duties is

demanded the Foreign Office would be likely to

incline to a compromise rather than to whole-

hearted resistance, but no-one can tell in what

form the situation will arise, and in view also

of the difficulty of consultation with other

Powers it is virtually impossible to work out

any policy to meet it in advance. Sir C. Clementi's

despatch in No. 12 confirms the arguments already

communicated to us and passed on to the Foreign

Office in telegraphic correspondence on the General

Policy file, but, if anything, it gives a rather more

favourable picture that we expected of the ability

of trade to stand further taxation, particularly

in South China where the prospects of the abolition

of Likin are better than elsewhere.

The despatch in No. 13 shows how

complicated and difficult is the position of the

Customs as affecting Hong Kong. I do not think

it necessary at this stage to go into the 1890

correspondence as to the status and powers of the

Commissioner.

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