CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 511

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PEANUT Krimee' al #I

Copy.

Enclosure No.1.

REPUBLIC OF CHINA

503

Government Headquarters,

Canton, 4th December, 1923.

Dear Sir Reginald Stubbs,

You have doubtless heard of my efforts to obtain what

is justly due to my Government out of the revenues of the Chinese

Maritime Customs.

I have hitherto limited the claim to a proportionate share of the Custom Surplus; and some time ago I addressed a communication in this sense to the Diplomatic Body. As the

latter appeared to ignore my representation on the subject, I

have had to consider what next step to take in order to secure

what, in any view of the justice of the case, should be paid to my Government.

I have therefore defined afresh the position of my

Government in a memorandum whereof the text reade as follows:-

"After providing for the service of foreign debts, there is an annual surplus of many millions from the Customs revenues collected at ports outside of the province of Tuangtung.

*2. The whole of the Customs duties collected in Fuangtung, therefore, is additional surplus revenue which has hitherto been available for disposal in accordance with the wishes of the Peking Government.

*3. Inasmuch as the disposal of all Customs surplus is admitted by the Foreign Powers to be a Chinese internal question, this Government has decided to assert its right to control the application of the Customs revenues collected with- in its territory in order mainly to prevent the same from being used or applied in the interests of the Peking Government, which is notoriously engaged in menting disorder and subsid- ising civil war in the province.

"4. This Government has no wish to interfere with the machinery of the Maritime Customs Service or, specifically, with the extra-treaty method regulating the deposit of Customs revenues in approved Banks. But this Government must insist that it shall be substituted for the Peking Government in all matters relating to the application and use of Customs revenues collected within its territory.

6. This Government, therefore, will require the Inspector- General of the Chinese Haritime Customs as well as his subordinate, the Commissioner of Customs at Canton, who are servants of the Chinese Government, to see to the deposit of all Customs revenues collected within its territory in such Banks at Canton as may be approved of and to hold the same at the disposal of this Government so long as the Customs revenues from the rest of China are sufficient to meet the foreign obligations charged on the Maritime Customs.

6.