CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 58

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occupy a peculiar position in a scheme in which all likin, transit dues, native customs and junk dues are to disappear,

but in which Hong Kong will simultaneously become a centre of

much greater importance to the Canton Authorities owing to

the increased import duties. On the 6th August, having returned from Canton, Colonel Hayley Bell came to see me and

gave me an account of the result of this conference.

9.

Customs autonomy would, he was told, be

enforced in Kuang-tung and in all places controlled by the Nanking Government on the 1st September next. It is expected that the same step will be taken at once by the Hankow

Government and that within a month the Northern Government

will follow suit. The main thought of the Nanking Government

is evidently to secure a largely increased income in the

shortest time possible. The financial exigencies of civil

war are very pressing, and money the War Lords must have. Likin also is to be "stamped out" this was the expression constantly used on the 1st September; and Colonel Hayley Bell's orders will be that his stations are to cease collecting anything whatever from junks on that date. This really means, of course, that the "abolished" likin and native customs

stations will become Custom Houses collecting the new import tariff and, no doubt, dealing with what they collect much as they did with the former likin revenue. Mr. Ku anticipated a certain amount of difficulty, even of confusion, at first; but he believed that matters would soon settle down under the

great blessing of getting rid of likin - and doubtless the greater one of securing import duties ranging up to 57%! He desired Colonel Hayley Bell to devise a scheme of preventive

organization