CO129-496 - Public Offices - 1926 — Page 24

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(3).

that decisions of conference will be accepted by Canton and the other main provincial groups. He was not aware of any indication having been given by other provinces of an intention or desire to claim customs revenues though he adritted danger of their doing so if example were set by Canton. In regard to latter he referred to absence of protests against conference proceedings and gave it as his opinion that Canton authorities were anxious not to thwart conference probably with a view to securing big surtaxes in sight whether for themselves or for China es a whole or to do anything which would upset existing customs arrange-

hence prompt ments while conference was in session; settlement of recent incident over seizure of cargo by strikers when they found themselves faced with united He considered your front on the part of the powers.

compromise impracticable on grounds that one could not surrender part of revenues in nonner suggested without endangering integrity of remainder to an extent which would be fatal to principles at issue.

(3). Making due allowance for shock of having these proposals suddenly sprung upon him and for his own personal position in the matter, we feel that Inspector General's vehement opposition to your pro- posals lends additionul weight to our views which we believe would be whole-heartedly endorsed by responsible British commercial industrial and financial interests in and concerned with China who know from caperience that foreign trade and credit of this huge country depends on maintenace of present efficient

and