CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 174

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unfavourably on Hong Kong. (c) That such a step will not save the Customs administration because Canton will

169 continue its independent collectorate and similar action

is likely to be taken by the south at Hankow, see Lampson's telegram No. 23. (d) That a thoroughly bad precedent will be created by condoning illegal taxes admittedly originated in order to liquidate anté-British boycott. (e) That the south will probably retain their production and consumption taxes and collection of the Washington surtaxes in addition. Chen has already hinted this.

3.

In an experience of Chine extending over twenty seven years and including the Boxer year, I have never known a time less suitable for abandoning treaty rights and

Present

I would urge that the treaty revision should not be attempted until regional recognition is achieved. movement) in China is less nationalist than anti-foreign and the first step, therefore, is for the Powers to agree what treaty rights they are prepared to defend by force if necessary. One such common interest would be, I presume, the maintenance of the maritime Customs.

4. If, therefore, as seems probable, Japan and the other Powers object to the unconditional grant of the Washington surtaxes now I recommend that we should strongly press alternative policy making joint protest already made against illegal Canton taxes really effective by a show of force if necessary while at the same time declaring that we are prepared to negotiate the recognition of any regional government in China which will suppress anti- British manifestation in the territory it controls and will respect the existing treaties pending their revision by negotiation in due form. Ends. Repeated to Canton and Peking telegram No. 31 of the twentieth.