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13th September by a formal acknowledgement in which he would welcome the assurance given to terminate the boy
coti on or before the 10th October, but make no re-
ference whatever to the proposal of the Canton Govern
to impose the new taxation. Mr. Brenan reported by tel
gram on the 30th Sepsomber that this had been done.
12. On the same day Dr. V.K. Ting, returning
from a visit to the General Staff of Marshal Sun
Ch'uan-fang at Nanking, called on Sir S. Barton, His
Majesty's Consul General at Shanghai and said that, if at this crisis the Canton Government were given the
proposed surtaxes, Marshal Sun could only regard this
as a gift to assist them in the campaign against him, and that he himself would be compelled to lovy the same taxes at Shanghai, although he would much prefer to deal with such questions by negotiation on the Tariff Conference lines at a more opportune time. Sir S.
Barton in reporting this conversation urged that the moment was not opportune for any commitments expressed or implied to the Canton Government (telegram to Peking
No. 68 of the 1st October).
13.
The next step was taken on the 7th October
when Comrade Ch'en addressed an identic note to all
representatives of the Foreign Powers whose nationals were in trading relation with the Liang Kuang provinces forwarding a mandate imposing the new consumption and production taxes with effect from the 11th October.
In this note he said.- "It seems desirable to em-
phasize the fact that the new tax is in principle an internal tax to be distinguished from the imports levied as customs duties under the Chinese Maritime
Customs system. There is, of course, no intention
to
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