63

collected, the Japanese Consul General protested

against such a levy as not being within the stipu-

lations of the existing Sino-Japanese Treaty of

Commerce and stated that Japanese merchants could

not pay them. The Japanese daily newspaper Jihjih

further reports that the Japanese Consul General

demanded the abolition of the Special Surtax Bureau

as being a violation of the authority and functions

of the Commissioner of Customs at Tientsin. Since,

however, Japanese firms cannot draw their goods

from the godowns until they have paid these new

surtaxes, it is understood that they are after all

paying under protest as do the Japanese merchants

in Kuang-tung.

68. At Shanghai the local Chinese authorities

began levying the new surtaxes on the 20th January

by means of a special collectorate and this practice

also continues in Shan-tung. Thus in northern as

well as in southern and central China the Customs

organization has been duplicated by the provincial authorities: but neither the northera militarists

nor the southern Soviet are likely to make any further

attack upon the Maritime Customs until the fate of

Shanghai, where 43% of the whole Customs revenue

As I write,

of China is collected, has been decided.

it seems that the battle for Shanghai is imminent:

and the last word, so far as I know it at present,

in this humiliating affair is a statement made on the 18th February by Dr. wang to Sir H. Lampson that instructions would shortly be issued by the

Peking

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