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question of the Washington surtaxes (Peking telegram to

Foreign Office No.529 of 17th December).

46. On the same day Mr. Lampson at Hankow had a further interview with Comrade Ch'en, to whom he explain- ed the attitude of His Majesty's Government towards the collection of the Tashington surtaxes by the Maritime Customs, urging that the Nationalist Government as much in its own interest as to avoid trouble with the Powers

should agree to collection of the new taxes by the Cus- toms. Comrade Ch'ên in reply reminded Mr. Lampson that his Government did not recognize the Washington treaties. The Nationalist Government, he said, was contemplating the introduction of the Canton surtaxes at Hankow, but the serious objection to the collection of these surtaxes by the Customs was that a precedent would be set which northern militarists would follow. It would simply mean the establishment of so many more plums for them to scramble over, including of course Shanghai as a super-plum. Nationalist sentiment would hold the moment to be most inopportune for a declaration of the uncon- ditional grant of the Washington surtaxes, as such a declaration would favour their opponents (Hankow telegram to Foreign Office No.20 of 17th December).

47.

However, in spite of these warnings from

Peking, Hankow, Tokyo and Washington, the British Foreign Office persevered with its policy, and under its in- structions Mr. O'Malley on the 18th December read out to his eleven colleagues at Peking a memorandum prepared by His Majesty's Government elaborating and amplifying the draft statement which had been telegraphed to Sir R.

Macleay

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