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state that in addition to the joint protest His

Majesty's Government would issue a statement to the

effect that, in view of the fact that circumstances

had prevented the implementing of the promise made to

China five years ago that she would be granted certain

tariff increases, His Majesty's Government, while

reserving their treaty-rights, were not prepared to

resist the levy of these taxes, but proposed to instruc

the British Consul-General at Canton to inform the

local authorities at Canton that, if they accepted our

views in regard to collection by the Maritime Customs,

he would instruct British merchants to acquiesce in

and do all in their power to facilitate the levy of unch new taxes. (Foreign Office telegram No. 304, dated

31st October).

4

30. Neither Sir R. Macleay, nor Mr. Brenan nor

I were in agreement with the Foreign Office policy. Sir Ronald felt that the proposed statement, throwing the blame for the failure to liquidate the Washington

promises on the Powers interested in the debt consoli- dation, would be gravely resented by the Japanese, Americans and other creditor Powers. He also doubted

whether such an explanation of our motives would secure

the goodwill of the Chinese Nationalists, who believed

that they could force the hands of the Powers and would

have no reason to welcome the enunciation by His Majesty's Government of a policy which, apart from the consideration that it was unlikely to be followed by the other Powers, implied our readiness to grant sur-

taxes

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