CO129-499-3 Canton situation- governor's despatches 12-2-1927 - 10-3-1927 — Page 7

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Kwangtung, when the Nationalist Government had its

headquarters there, lasting for 15 months. All workmen,

merchants, peasants, students and soldiers supported it.

They maintained an unbroken front and boycotted Hong Kong,

finally bringing their opponents to their knees. The

Nationalist Government decreed a levy of 21% surtax on

ordinary goods and 5% on articles of luxury. The British

Government dared not raise a word against it. The Peking

Government has also had one or two Tariff Conferences. All

these will prove that with the support of the masses the

abolition of the unequal treaties can be secured. Since

in such a trifling matter, the unity of the masses has

proved to us its great power, if all the masses really

combine themselves in their demand for the abolition of the

unequal treaties, nobody can resist the combined strength

of a population of 400,000,000. We shall get the unequal

treaties abolished without sacrificing a soldier or a war-

ship.

When we get the unequal treaties cancelled we shall see

to it that we recover the Customs, and this will yield us

an annual revenue of Tls.70,000,000. With this revenue we

will improve our industry and communications. We shall

also work to resume control of the salt-gabelle, and then

we shall see great prosperity in commerce, industry and

banking business.

Furthermore we can adopt a sliding Tariff System. If

for instance any native products are dearer than those

imported of the same kind, we can increase the tax so as to

eliminate foreign competition, and when we are in need of

any particular kind of goods, we can reduce the tax on that

kind of goods. By so doing we shall be able to protect the

industry and commerce of China.

There is yet another thing.

When we recover these

sources of revenue, we shall use them in the interests of

the