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On the 18th September Comrade Ch'en wrote an official

letter to confirm the statement" which he had made to

Mr. Brenan on the previous day. The text of this

letter was telegraphed to the Foreign Office by Mr.

Brenan on the 18th September and it was published on

the afternoon of the 20th September. It was not quite

in the form which might have been expected from Mr.

Brenan's report of the interview of the 17th Septem-

ber. It reads as follows:- "I have the honour to

confirm the statement made to you yesterday that

arrangements have been made to end the boycott on or before October 19th (most probably at the end of September) and that the proper Chinese authorities

will levy a special consumption tax of 2 per cent on

ordinary imports and 5 per cent on imported luxuries

together with a special production or producers' tax

on exports. It is proposed to calculate the new

rates on Customs Memo. and to arrange for the Customs authorities to clear papers only on production of

vouchers verifying payment of such new special taxes.

I have to add that the arrangements referred to have

been made with the Strike Committee. 留 This letter

did not in any way make the cessation of the boycott

conditional on our raising no objection to the new

taxes. It left this to be inferred from the fact that

these otherwise disconnected matters were embodied in

the same sentence of a short letter and from the fact

that this letter was written "to confirm the statement"

made at the interview of the preceding day.

4.

The immediate objects with which Comrade

Ch'ên wrote this letter wore clearly to gain time and

to

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