CO129-497 - Public Offices - 1926 — Page 30

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8. It is the earnest hope of His Majesty's Government that the Powers will agree to adopt the principles of the policy outlined above and apply them to the realities of the present situation. Cer- tain recommendations in the Reports of the Commission on Extraterritorielity referred in paragraph above and certain other reforms not covered by that Commission's Report but falling under the general heading of Extra- territoriality can be carried into effect even in present conditions without great delay. ever one step of more immediate importance which in the opinion of His Majesty's Government the Powers should agree to take at once. His Majesty's Govern- ment believe that an endeavour should be made to undo the evil results which have flowed from the failure of the Tariff Conference to implement the promises as to tariff increases made by the Powers to China nearly five years ago, and they propose therefore that the Powers should agree to the immediate unconditional grant of the Washington surtaxes.

9. By the China Customs Treaty signed at Washing- ton on the 6th of February, 1922, the Powers promised to grant China certain tariff increases (commonly known as the Washington surtaxes) "for such purposes and sub- ject to "such conditions" as the Special Conference nd ght determine. That special conference is the Tariff Conference which, after a delay of nearly four years, met in Peking on the 26th October, 1925, and has now to all intents and purposes definitely failed. The promised surtaxes have not been granted. The Foreign Delegations were not satisfied with the assurances which the Chinese Delegation offered at the session of the 18th March as to the purposes to which the Chinese government would themselves devote the proceeds of the surtaxes.

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