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(2).
I have been guided by the consideration that we have always admitted liability of British property owners
to pay Chinese land tex, that we cannot expect tax to remain always at the present nominal figure and that we are committed under our 1927 treaty alteration offer to
pay non-discriminatory Chinese national taxation.
I
3. As regards claims, the Minister for Foreign Affairs endeavoured to argue that this was a separate question unconnected with the rendition of the concession and he objects to it being regarded as a condition. did not stress the point and do not anticipate serious difficulty in dealing with it probably through a small claims commission by means of a separate but parallel exchange of notes as in the case of the Kiukiang settlement.
Mooring rights no longer exist as such owing to silting up of the concession front but Minister for Foreign Affairs raised no objection to provision being made in their place for safeguarding rights of British shipping firms to convey cargo from godowns in con- cession to ships in the river.
Addressed to Foreign Office.
Repeated to Peking,
Nanking and Chinkiang.