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levy of a licence fee, the future conditions under which limestone should be quarried and exported would be in no respect different from those which obtained under the Spira", Mr. Combo had learned that a contractor of the Green Island Cement Company, who had applied to the Wazig- trate at San Shul for permission to quarry limestone at Tai Tong, had been informed officially that before his petition could be granted he must agree to pay a local tax er $1 par ton in addition to the usual Customs and Likin duties. Mr. Cembe went on to describe how he protestad with the Civil Governor against this impost and how the Civil Governor defended it on the ground that he could not ́interfere with local taxation by 100:1 authoritios. Mr. Combe added that "Eis (the Civil Governor's) attitude con- vinced me that the Canton Government ware determined on differential treatment against the Areen Island Company”.
4.
Under date of the 6th of December you advis- ed X.5.X's Ministor that you had informed the Chinese Authorities thai Sir John Jordan refused to recognise the introduction of such special local taxation and that you had requested the Chinese Authorities to suspend the tax
entirely.
8.
On the 29th Decorber you were good enough to inform me that on the 17th of that month H.5.a Minister *gave the Tai Chiao Fu until the 24th December to have this question (1.e. exportation of limestone) definitely settled otherwise he would have to consider what retaliatory stops should be taken by the Hongkong Goverment in order to mark their dissatisfaction with continnod delay and obstruction", You added that you were authorised by Sir John Jordan to consider "a mall royalty of 2 or 3 cinta par ton in order to escape ́sharƑa of putting forward demands out of
reason'
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