CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 123

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concentrate without loss of time was to induce the

Cantor Government to agree to collection of the new

takes by the Customs; and, that being so, the Foreign

Office thought it would be better to safeguard our troaty-rite by a statement rather than a protest. Accordingly on the 24th October the Foreign Office telegraphed to Sir R. Macleay the following draft

statement for consideration by the diplomatic body at

Peking:- "The diplomatic representatives of the

Powers concerned have had under consideration the

action of the local authorities at Canton in levying

certain taxes styled production and consumption taxes

at a foreign trade port. Such taxes cannot legally be imposed except with the consent of the Powers and

should only be collected through the machinery of the

Maritime Customs administration. The diplomatic

representatives have, however, taken into consideration

the fact that tariff increases were promised to China fire years ago, and that circumstances have prevented

the fulfilment of these promises. In view of this

fact and of the abnormal conditions at present pre-

vailing in China, the representatives are prepared to

acquiexce in the levy of these taxes. This acquies-

cence, however, is not to be construed as signifying

any diminution of the treaty-rights conferred or the obligations imposed by the treaties now in force. The

Pomors have acquiesced from a desire to assist China

through the difficulties of a period of transition and in the expectation that the Chinese authorities

will respond to the freindly feeling thus show and

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