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prefer to reserve final comment even as to that. Mean-
while my belief is that if we could deal firmly and
at once with one item of increased tonnage dues which
is in force since July 11th we should thereby show
Nanking Government that we mean business and be in a
much stronger position to deal effectively later with
sequal of surtaxes. I therefore make definite suggestio
that I now instruct His Majesty's Consul General at
Shanghai as proposed in his telegram No.251 to me to tell
British shipping companies to proceed to sea without
paying increased tonnage dues and that I inform my
colleagues that I am doing so. May I do this?
With regard to danger you mention of possible
retaliation by withdrawal of customs extra-treaty
privileges to shipping, Inspector General considers that
we need not take this too seriously because it would in
practice be very difficult for customs to carry into
effect.
Addressed to Foreign Office No. 1213, repeated to
Tokyo, Shanghai, Hongkong and Commander-in-Chief.