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In discussion which ensued I maintained as far
as possible an attitude of reserve but when it became clear that general sense of meeting was unanimous that taxes were indisputable violation of treaties and should be protested against as such I was obliged to make it plain that I could not without your sanction join in any protest owing to our special position as explained in last paragraph of your telegram No. 277. Discussion revealed on the part of my colleagues
a full appreciation of the gravity of the issues raisco
by proposed action of Canton government including the dangers that tacit acquiescence might lead to eventual provincial or regional tariff autonomy and that separate negotiations with Canton government with a view to regul arising situation would practically amount to recog- nition of their independence.
The American Chargé d'Affaires stated that he had strongly urged his government to oppose taxes.
No one
however appeared to contemplate possibility of a resort
to force if a protest proved ineffective.
Minally on suggestion of Germen Minister it was
proposed that diplomatic body might issue a statement
declaring their inability to recognise legality of new
taxes, referring to their frequently repeated readiness to grant Washington surtaxes, and expressing the
opinion that the various regional authorities should
come to an arrangement amongst themselves regarding
use of proceeds of these surtaxes and then notify
foreign representatives with a view to their being
put
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