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means as continuance of famine relies surtax I think we should do all we can to assist Chinese in endeavours they are now making to establish some sort of a govern- ment representative of various factions, and it might well be worth considering whether foreign delegations could not issue some form of public appeal to the country, inviting different leaders to sink differences and unite to for coalition goverment to conclude work of con- ference as first step towards re-organization of country in the general interests of China as a whole. Only objection I can see at present to such a move would be opportunity which might thus be afforded to anti-foreign Extremists to raise the cry of foreign intervention in China's internal affairs.
2. It must be remembered that practical effect of 1913 agreement has been to place control of allo- cation of surplus customs revenues entirely in the hands of inspector-general, who is the servant of the Chinese government, and diplomatic body have publicly declared that they have no treaty right to decide use to which customs surplus revenues shall be put by Chinese govern- ment, or power under 1912 arrangement to allocate such surplus. Except therefore for maintenance the arrange- ment whereby in order to safeguard foreign loans and indemnities, whole revenue collected by maritime customs administration is temporarily lodged in two foreign banks in Shanghai mi arrangement which we recognized
will have to be modified by admission of Chinese banks in
foreign
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