follows:-

25-

"It is agreed that there is no possibility

of preventing these taxes being levied, and it thereford seems to us that our main object should be to prevent the serious danger to the Maritime Customs involved in the establishment of a rival organization for the col- lection of these taxes. We have, therefore, proposed in

the Powers that we should issue a statement rescrving our treaty-rights and acquiescing in the levy of these taxes, provided that they are collected by the Maritime Customs. One of the main reasons that have prompted

His Majesty's Government to adopt a policy of acquics- cence rather than of protest is that the Powers have failed to implement the promise made to China five years ago to grant her certain tariff increases, and that this failure may with some show of reason be

ascribed to the determination of the Powers not to

grant any tariff increases to customs revenues for the

benefit of Chinese foreign credit. His Majesty's

Government have always deprecated this attitude. We

feel that any attempt to resist these taxes,

illegal

al

though they may be, would not only be futile, but would

in some sort frustrate our own intentions". Sir R.

Macleay was, however, further instructed that, if his colleagues did not share these views and insisted that

the right course was to lodge a joint protest against the taxes, His Majesty's Government would not dissociate

itself from the other Powers, but would join in the pro-

test, provided that it was so worded as not to prevent

His Majesty's Government from adopting in regard to British merchants or British goods the policy which it had pressed upon the Powers. He was also instructed to

state

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