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of Britisà trade in Canten.

The question of the Cuștems

Tariff is one of the mujer political issues in China

at the present time. The Chiness claim to the exercise

of tariff autonomy has been recognised in principle

bat tán ezereise of tariff autonomy will involve the

adjustment of many complicated problems relating to

the sethod of collecting the Customa rovenues ander tæe

new tariff, tam amolition of the independent sartax

bureaux referred to above, tao banking and disposal of

the reveaues when sollected and the arrangementa for

tae service of the logas secured on those revenues.

is of great importance to British interests that a

satisf«atory anderstanding should be reached with the

Chinese ca thorities on all these points but if be fore

negotiatione are begun it is found that part of the

revennea in question have already osen plodged as

security for foreiga loans the whole position will havo

been padermined in advance.

The Nationalist Governsent at Banking are

believed to be considering plans of finansial

reor gani sution wish & view to taking on their ow

shoulders the responsibility for the liquidation of she

uneecured/

It

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