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war all over China, would prolong the present misery, nd would not be used for the abolition of likin or forany of the beneficient purposes conterplated at Washington:
(b) that, as 43% of the Customs revenue was col- lected at Shanghai, this proposal, however acceptable to Marshal Sun Ch'uan-fang, would infuriate Canton, whose resentment might react unfavourably on Hong Kong
(c) that such a step would not save the Customs administration, because Canton would continue its independent collectorate and similar action was likely to be taken by the Southerners at Hankow:
(d) that a thoroughly bad precedent would be created by condoning illegal taxes admittedly originated in order to liquidate the anti-Pritish boycott:
(e) that the Southerners would probably retain their production and consumption taxes" and collect the Washington surtaxes in addition: Comrade Ch'en had already hinted this.
le further considered the present time most unsuitable for abandoning treaty-rights, and we urged that treaty revision should not be attempted until regional recog- nition had first been achieved. In our opinion the present agitation in China was less nation list than anti-foreign, and the first step was, therefore, for the Powers to agree what treaty-rights they were pre- pared to defend by force, if necessary. Cne such common interest would, we presumed, be the minten..nce of the Maritime Customs. If, therefore, at seemed
probable, Japan and other Powers objected to the un-
condition.l
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