ground hitherto thought comparatively safe, under

treaties and International Guarantees: that is, the

area of the first, or Customs Tax. From the

moment of 24% surtax was accepted and acquiesced

in by England last October in Canton the question

became, and now is: not what the effect of any

present taxation will be on foreign trade; but of

probably very considerably greater increases that

may be looked for to come into being with a like

lack of warning or time for preparation.

It is,

in fact, perfectly plain that the Customs, as the

guardian, under the Powers, of original foreign

importation into China ceased to exist on the 10th

of October, 1926.

The last anchor has gone; Chinese

traders themselves look with surprise at so

successful an assault upon a quarter in which it

was thought that steady resistance, if anywhere,

could be looked for. The argument may be

advanced that supertaxation had in any case begun

and become general; that when provincial taxes

were imposed without resistance upon oils, tobacco,

cigarettes, spirits and other cargoes of foreign

origin, the actual surtax on Customs duties

themselves was practically already accomplished.

There is, however, surely this great difference;

these were still internal taxations and, however

vexations, were still a domestic matter which

might at the worst be left to be dealt with

later

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