CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 462

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port, would allow customs revenues collected there to be distributed to any other province or part of it to go to Central government. The reversion to such an arrangement would render any systematized likin abolition much more difficult if not impossible, and would encourage interior provinces not in possession of a large treaty port, to secure their share of taxation of foreign trade by levying all kinds of additional duties. Moreover in some cases authority to control treaty port may not be the same as that controlling provincial capital; while financial prizes offered by possession of ports, would be likely to promote civil wars and political disintegration.

I am in entire agreement with view that future of China lies in evolution on a federal and decentral- ized basis, but necessity of a Central government for conduct of the nations' foreign relations must remain and is, I believe, recognized by all Chinese. _ta further of opinion that the only prospect of tariff conference achieving any useful result is for Powers to continue to treat with whatever goverment may emerge in Peking, and to refrain from dealing with independent leaders and provincial factions. Such action by encouraging disintegration and secession

would be disastrous to our interests and to difficult

and delicate task of treaty revision which is now in

progress.

While therefore I fully realize objections to

bolstering up a Central government by such doubtful

means

: