(3)
students and intelligentsia and:
3.
That of Cantolere.
468
If
As regards 1 While it is impossible to be con- vinced of anything in Chinese affairs at present we believe that you have altogether over-estimated pro- vincial demands for distribution of custom revenues in which Chinese in many large provincial centres are now deeply interested through internal loans. Provinces have never shown any hostility to meeting debt charges out of customs revenue and we think that we should see what reception our proposals meet with amongst provinces before considering alternatives. foreign delegations could agree on a general plan in- cluding a large measure of provincial allocation in form of likin compensation on lines of our proposals it might be possible to give publicity to general out- lines of scheme and watch reaction in provinces thereto.
As regarde 2. We are in agreement as to existence of widespread nationalist movement aiming at total elimination of foreign interference in China's affairs and of importance of giving sympathetic consideration to this popular feeling. This movement however has not yet attacked existing arrangements for collecting customs revenue which in existing conditions in China by saving funds from grasp of militarists are obviously for benefit of China as a whole and we believe that it would be a disastrous misteke to consider surrender of these revenues to be squandered on civil wars before there is at least some definite indication of widespread objectio
to
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