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privately they said- "go ahead and collect"! (Feking telegram to Foreign Office No. 144 of the 21st January) On the same day Sir Francis telegraphed from Hankow that he considered the time had come to regularize the collection of the Washington surtaxes by making it possible for the Customs to collect them. Sir M. Lampson discussed this telegram with Mr. Edwardes and pointed out the difficulties owing to Japanese opposi- tion (Peking telegram to Foreign Office No.147 of 21st January). But on the morning of the 22nd January, when Sir Francis told Comrade Chiên that, if the Treaty Powers unanimously declared their willingness to grant the Washington surtaxes, he would in accor- dance with his policy of acting in conformity with the treaties order their collection by the Customs and hand over the proceeds to the Chinese Superintendents at ali ports, Comrade Ch'ên replied with extreme emphasis that such action would amount to subsidizing Peking and Mar- shal Sun Ch'uan-fang and that his Government, though most reluctant to interfere with the Maritime Customs administration or the service of the internal or exter- nal loans secured upon its revenues, would at once take entirely under their control every customs house in their jurisdiction as a retaliatory war measure. (Mr. O'Malley's telegram to Peking No.21 of 22nd Jan- uary). During the afternoon of the same day Sir Francis endeavoured to resume discussion of the sub- ject with Mr. Sung Tsz-ran, the Minister of Finance of the Nationalist Government; but their interview at the Finance Ministry was interrupted by a violent mob
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