2.
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of certain very onerous taxes. If this view is
accepted our line would then be to instruct Sir S. Farton to protest, inform the Nanking government that our merchants will be supported in refusing to pay, but indicate his readiness to enter into a discussion
of the whole question. He should then secure such concessions in the way of reductions or postponement, as seem possible and eventually acquiesce.
3. Should this lead to anything in the nature of a conference at Shanghai, the Japanese will probably endeavour to drive some bargain over their unsecured debts. It is important that Sir S. Barton should avoid being drawn into any discussion of debts in relation
to tariff increases similar to the Tariff Conference
negotiations.
4. Please telegraph fully your views.
Repeat to Shanghai, Commander-in-Chief Hankow, Canton for Hongkong, and Tokyo.