--
16-
the Foreign Office on the 14th October and explained
that the tariff was based on 2 por cent of the market
value of the goods; that the levy of this new tax had
already begun at Tsingtao, where the local wharf ad- ministration had refused delivery of all imported cargo
and shipment of export cargo which had not paid the
tax; and that the ability of the local Chinese authori-
ties to levy the tax in this way at Tsingtao was due
to the fact that they, and not the Chinese Maritime
Customs, controlled the harbour and wharf arrangements
of the port (Peking telegram No. 376 to Foreign Office)
17. A further meeting of the diplomatic body at
Peking was held on the 20th October to discuss the
Canton and the Shan-tung taxes. It was clear at this
meeting that the Foreign Minister did not think that
protests against these taxes would be effective, nor
did they believe that their Governments would join
in any action to support the protests by force. Sir
R. Macleay laid special emphasis during the discussion
on the importance of preventing, if possible, the establishment of separate tax collecting organizations.
at Canton or elsewhere. His colleagues all recognized
this, but inclined to the view that a formal protest ought nevertheless to be lodged in order to safeguard the important principle involved. Finally another
form of protest was drafted ad referendum" to the Governments concerned (Peking telegram No.383 to Foreign Office).
18.
The British Foreign Office decided that
the really important point on which we should con
centrate
}
;26