CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 73

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either one of them the effect on Hong Kong, as

on China trade, should not be disastrous by the

present taxes going into operation. They are not

excessive in themselves. They are, in fact no

more than the proposals originally presented by the

Chinese (Central Government at the Tariff Conference

of 1925 as proposed to be imposed. But probably

neither the Surtax (223 of which is already paid

with little grumbling by the Chinese) nor Likin

should in themselves be blamed as the cause of

present and probable further trade decline. It is

the great element of uncertainty, the lack of any

confidence that the end of such taxation has been

reached even with the proposed schedule, that is

responsible for this. Moreover there is no end

to other local taxes, little known to Europeans,

which in practice again and again take toll of

the same merchandize in its various stages of

distribution. Shop taxes, rent in advance for

unlooked-for purposes, registration fees on everything

for the benefit of the war costs, local charges

for the upkeep of police, anti-piracy and brigandage

measures; fads and ill-considered schemes without

number, such imposts being, moreover, very generally

collected for years in advance or farmed out for

lump sums down to save trouble and get hold of

the money at once; a system uneconomical in the

extreme, whether as regards result to the Government

or the wretched subject of taxation. The people,

their