CO129-496 - Public Offices - 1926 — Page 524

[This Document is the Property of His Britannic Majesty's Government.]

SECRET.

C.P. 399 (26).

Printed for the Cabinet.

November 1926.

CHINA.

40

I CIRCULATE to the Cabinet the following papers on the different

aspects of the Chinese problem :-

I.-Tariff Conference and Canton Taxes.

II. The Canton Boycott.

III. The Question of Recognition of the Southern Government. IV. The Wanhsien Incident.

V.-Denunciation of Treaties by China.

VI. Piracy.

I suggest that it would be well that they should be at once referred

to a Committee of Cabinet for examination and report.

I propose to submit to the Committee as soon as possible a draft despatch to our Representatives abroad setting forth the policy which, in the common interest of our relations with the new China, we consider ought now to be adopted by us all.

Foreign Office, November 23, 1926,

A. C.

MEMORANDA FOR THE CABINET.

BRITISH POLICY IN CHINA.

1.-Tarif Conference and Canton Taxes.

1. The facts with regard to the questions of the Tariff Conference and the Canton taxes, on which a decision has now to be taken, are set out in two previous memoranda (C.P. 308 (26. c.P. 380 (26)+

2. We are now faced with the alternative of continuing to co-operate with the Powers in a common policy at the Tariff Conference, which has been sitting in Peking since October 1925, but which is now in a state of suspension, or of breaking away from them and taking isolated action in China. Co-operation has been our practice ever since the Washington Conference of 1921, and it should be clearly understood that the alternative proposal does not necessarily imply the complete scrapping of the Washington policy of co-operation, but it does mean a break on a particular and very important issue, namely, whether the Washington This is admittedly a very surtaxes are to be granted unconditionally or not. serious step to take and one that can only be justified on the very strongest grounds.

3. The aim of the Washington treaties was to maintain the principle of the open door, to assist China in her efforts to establish her position as a sovereign independent State and in general to unite the Powers in a common policy of justice and generosity towards China. The Powers have failed to observe these treaties either in the spirit or the letter.

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