CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 548

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application to the Diplomatic Body at Peking for the accumulated Cantonese share of the Customs' surplus, namely 2,513,950 taels; and he threatened, if his claim were disregarded, to take over the Customs Administration at Canton by force. Thereupon Great Britain, America, Japan, France, Italy and Portugal participated in a joint naval demonstration at Canton for the protection of the Customs; and, although Dr. Sun issued orders (which, of course, were ignored) to the Canton Commissioner of Customs to turn over all Customs revenues to him, he made no attempt forcibly to occupy the Canton Customs. Eventually the Diplomatic Body acquiesced in a proposal submitted by the Peking Government in virtue of which the outstanding sum of 2,513,950 taels was distributed as follows:- (a) Tls. 420,000 for Canton Conservancy: (b) Tls.700,000 for Chinese Legations abroad: (c) Tls. 200,000 for Plague Emergency measures: and (d) the balance for service of the National Consolidated Loan. It is noteworthy that, as soon 88 Dr. Sum threatened to take over the Canton Customs, a protest was addressed to the Consular Body at Swatow in the name of the " Comander -in-Chief of the Kuang-tung Punitiva Army", stating that the Army occupied two-thirds of the Kuang-tung province and demanding that, if the surplus Customs revenues were released locally, they should be handed not to Dr. Sam, but to the "Punitive Army".

6.

The political situation in South China today is not very different from what it was in 1923. The Canton Government professes to be the only real National Goverment of China. There is but a shadowy Government at Paking, which exercises no authority whatever in Kuang-tung. Moreover, the Canton Government has many enemies in Kuang-ting itself, though for the time being cowed and in hiding, and it is now threatened openly with invasion by the Yangtasa Var Lords. Its need for money is very great; and it camot but view with dissatisfaction any releases of Customs revenue

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