CO129-497 - Public Offices - 1926 — Page 478

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OOPY OF TELEGRAM FROM CHINA ASSOCIATION,

HONGKONG DATED NOVEMBER 24TH.

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The following is for Southborough Committee from China Association; as Shanghai view differe from ours regarding situation we consider important advise you as follows: Message begins: Policy Kuomintang Party avowedly annulment Treaty STOP Principle new tax and method collection is in effect Tariff Autonomy and undermining Customs Administration STOP They will proceed with policy as far as permitted and unless some action is taken the result will be lapse all rights under Treaty STOP The rest of China will follow with the possibility repudiation Foreign Loans STOP We are of opinion that united protest should be made immediately by Powers determined to back up by force but we feel sure united front and show force if called for adequate STOP Protest alone futile STOP If nothing done but present course of events tacitly allowed it will mean Powers decline protect Treaty rights and it will be necessary probably extend same terms to other regional authorities STOP Any forceful action by Great Britain alone is fraught with possibility gravest consequences and we are strongly opposed to STOP In our opinion extent of regional recognition proposed in Shanghai June report will not satisfy Canton Government STOP Anticipate Kuomintang Party will insist upon recognition Canton Government as the equal of Foreign Powers but we consider Government as at present constituted moderate and believe will be fairly reasonable in their demanda STOP We consider negotiations for recognition with revision existing Treaties should be opened with Canton forthwith STOP Since November 2nd when foregoing drafted developments substantiate opinion expressed and emphasize importance of policy proposed in previous sentence STOP Referring to telegram November 20th from Shanghai to you with regard to increasing Customs Duty we are not in favour of as we consider will not solve difficulty and we are convinced that Taxes will continue until recognition to extent we recommend STOP Sunning Piracy in our opinion provides conclusive argument for bringing pressure upon British Government without delay to offer cooperate with regional Authorities cleaning up pirates STOP If regional Authorities unwilling or unable to cooperate then British Government to notify intention act independently and do so in view of standing merage to local shipping and personnel if allowed continue unchecked.