This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.

44

From CHINA.

Decode.

Mr. O'Malley (Peking).

8th August, 1927.

D.

1.00 p.m. 9th August, 1927.

R.

9.00 a.m. 9th August, 1927.

No. 1233.

(R).

• • •

Following from Canton.

Addressed to Peking No. 63 of 6th August, repeated

to Shanghai and Wei-hai-wei for His Majesty's Minister.

Consuls have now been formally notified that

increased tonnage dues are payable from August 1st.

My colleagues are ref erring to Peking for instructions.

Do you wish me to protest and what shall I advise

shipping companies?

Passive resistance measures already suggested will

be dangerous if not impossible in Canton where all cargo

is landed in city especially without the loyal co-

operation of all other nationalities which it is useless

to expect. Norwegian ships for instance are chartered

by Chinese who will pay anything to get business.

We can protect British ships against detention but

cannot prevent complete stoppage of their trade without

such general hostile action against Canton government

as will cause latter not only to abandon taxes but to

refrain from re-imposing boycott.

The tonnage dues question is complicated ( grp. undec.) large number of Chinese owned and controlled

steamers and launches.

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