CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 125

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offectively stopping the now taxation or authorizing its

collection by the Customs.

20. Sir. R. Macleay at once discussed the situation

with Mr. Meyer, the American Chargé d'Affaires, who said

that he had been unable to persuade his Government of the

necessity of taking offecivo action in either sense and

explained that they saw no reason why the Customs should

collect the tax or be dragged into the matter at all.

The United States' Government proposed to safeguard the

principle involved by recording a protest and then leave

matters to follow their own course, In fact the United

States' Government took the opposite view to that of

the British Foreign Office and hold that the collection

of the tax by the Customs would be objectionable as

legalizing the levy, which it refused to recognize

unless and until granted by the Powers in the manner

contemplated in the Washington Treaty.

21. Subsequently Sir R. Macleay saw the Japanese

Counsellor of Embassy, who described the attitude of his

Government as being much the same as that of the United

States' Government, in that Japan wished to protest and

objected to tho British proposal to acquiesce in the

tax and secure its collection by the Customs. Japan would almost certainly reject the statemont drafted by the British Foreign Office as involving willingness to

grant the Washington surtaxes unconditionally.

22. It thus became obvious that there was no

prospect of joint action by the Powers on the lines dosired by the British Foreign Offico. Moreovor, Sir R. Maclcay doubted whether it would bo possible to in-

duce the Canton Soviet to entrust the entire collection

of