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important centres like Shanghai, thus prolonging the
struggle. Sir Francis replied:- "Naturally, unless
both sides agree to set aside the proceeds to be used
for non-military purposes".
(d) The collection of these surtaxes and their pay – ment to local authorities would have a disruptive effect
on the Customs administration as a national unit and
also politically. Sir Francis replied:- "Not necessarily
the Customs would revert to pre-1912 procedure and merel
ensure collection for the authorities concerned, taking
no responsibility for the custodianship or disposal of the funds (Feking telegram to Foreign Office No.556 of 28th December). Comrade Ch'en's next ster was to des-
patch the following telegram to the State Department at
Washington and publish it on the 1st January in the
Hankow newspapers:- "My Government learn that it is the intention of the United States Government to agree to the British proposal regarding immediate enforcement of so-called Washington surtaxes and payment of proceeds to local authorities at ports of collection. In spite of
elaborately worded sentiments in British declaration,
the real meaning of this proposal is that two-thirds of
the new revenues will go to our political enemies, who with war chestr replenished will be able to continue a civil war that bleeds nation and delays liberation of China from present régime of international control
known as foreign imperialism. Specifically the British
proposal means -
(a) not only that Chang Tso-lin will receive new and substantial revenue, but gilt-edged security will be
created