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the financial point of view the difference between this arrangement and that just discussed is probably negligible. There would, however, be such great practical difficulties of administration owing to the division of the lands of villages that I do not think that this course can be regarded as practicable.
28. (C) As both the alternatives considered above are beset with difficulties and as the financial result of adopting either presente no special attractions, it seems that the best course will be to make no attempt to reduce the area for which Great Britain is responsible and the only question to be considered is how to make the best use of it.
29.
I must here repeat what I said at the begin-
ning of this report. If any real development is to take place or if Weiheiwei is to do credit to British administration, it is absolutely essential that the question of temure should be settled definitely. If this is not done, the place can have no future and it is scarcely worth while to trouble much about its present.
I would urge, therefore, that steps should be taken at once to modify the Convention of 1898 so as to provide for a definite term of lease.
30. I would strongly advise also that the opportunity should be taken to obtain the consent of the Government of China to the levying of customs duties for
revenue purposes. At present the administration of
Weihaiwei ie pledged to hand over to China the proceeds of any customs dues collected there. The pledge was given by His Majesty's Government in 1899, not to the Government of
Chine but to the Government of the United States of America
and I would submit that, if the Government of China waives
its claim to receive the proceeds, a pledge to a third party need no longer be regarded as binding. It is not likely that the Goverment of China would raise any
objection
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