CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 79

ENCLOSURE NO. 4.

1

Extract from the South China Morning Post, 12th Nov.1926/

CANTON'S NEW TAXES.

UNEXPECTED REPLY TO CONSULS' RECENT PROTEST.

MINISTERS NON-EXISTENT.

It will be recalled that recently the Consular Body at Shameen forwarded to the Government at Canton a pro- test against the -new consumption and production taxes which the Government recently proposed to enforce.

The Canton reply is somewhat unexpected. In effect it says that the Ministers at Peking are unknown to the Nationalist Government at Canton, and the protest is returned to the Senior Consul unconsidered.

The following official communique has been issued by the Government:

The Foreign Office to-day au- thorised the publication of the following communication dated November 8, from the Acting Min- ister for Foreign Affairs to the Consul General of Portugal, who is senior member of the Consular Body at Shameen:

"Sir, In order to avoid misun- derstanding and to assist to a right perception of the new reali- ties of the national situation re- sulting from the extension of Na- tionalist authority over the greater part of China, I have the honour to return the enclosed letter, dated November 5th, and transmitted through the post, which purports to be a protest communicated by 'the Senior Consul at Canton' by direction of the Senior Minister of the Interested Powers represented at Peking,' who declare that they cannot recognise the legality of the internal taxes authorised by 'the Canton authorities' on the consumption and production of goods within the Liang Kwang, on the ground that the same are in direct violation of treaties."

"My Government does (not) re-i cognise the existence of the 'Senior Minister of the interested Powers represented at Peking" (who lacks juridical sanction) nor

are the

status and the relations of the same powers vis-a-vis my Govern- ment regulated on a basis which can properly entitle them to raise the question of a 'direct violation of treaties.'

"I have the honour to add that my Government is ready to dis- euss this and other questions as and when all or any of the Pow- ers represented at Peking realite that national power and authori has long since ceased to be exer eised in Peking, and that the re- volutionary and constructive forces of Nationalist China have

now

transferred this national power and authority to my Gov- ernment. Chen Yu-jen, Acting Minister for Foreign Affairs."

The Consuls' Letter. The text of the Portuguese Con- sul General's letter reads as fol- lows:

"Your Excellency,-In connec- tion with Your Excellency's des- patch of October 6th, 1926, I have the honour to inform you that as senior Consul at Canton I have been directed by the senior Minis- ter of the interested Powers re- presented at Peking to communi- cate to Your Excellency the fol- lowing protest:

"In view of the levying by the Canton authorities of certain taxes on foreign trade, the Diplo- matic representatives at Peking

of the Powers concerned declare that they cannot recognise the le- gality of this measure, which is in direct violation of treaties. Dr. Felix B. M. da Horta, Consul Gen- eral for Portugal and Senior Con- sul."

The Surtax,

Canton, Nov. 10. In the SO M. Pont of the 2nd inst a local correspondent stated that the Ministry of Finance has announced that the collectors of the internal productions and consump tion tax will collect a ten per cent surtax for war relief in Hupeh and Kiangsi

An official of the Canton Finance Office denied this report. The denial, however, does not state that such a tax will not be collected, but simply that a surtax of 10% is not being collected for relief purposes.

Chinese employees of both the Maritime Customs and the Native Customs state that the surtax is being imposed, but there seems to be doubt as to what it is for.- 0.0.