CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 42

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the time it feared Chang Tsung-chang might not be strong enough

to repel the attack of Chiang Kai-shek, and Japan said that it was her duty to protect her own nationals. Had Chang Tsung-

chang met with a serious reverse in Shantung, Japan would have

sent a large force to block the onward march of Chiang Kai-shek.

But Chang Tsung-chang proved himself to be strong enough, and

this altered circumstances defeated the machination of those

in Japan whose object was to retain in China permanently any

large forces sent there for a specific purpose, even after that

purpose had ben fulfilled.

30.

Szechuen.

Szechuen need not be taken into serious account in

any immediate appraisement of military strengths. Yang Sen,

who with Hsia Tao-jen led an expedition against Hankow some

time ago, was forced to return to Szechuen, and is for the

present out of the picture.

Fukien.

31. When asked what he knows about Fukien, fr. Liang

answers that he has heard very little of the prevailing con- ditions in that province.

Abolition of Certain Duties and imposition of Others.

32. As regards the proposed abolition of likin, and the levy of certain new duties as from the 1st September next, Mr. Liang believes that this proposal may not be carried into effect. The receipts anticipated from these new duties will not be suf-

ficient to cover the losses from the abolition of likin, and of import, transit, coast-trade and re-export duties. Uhina must be able to raise $84,000,000 a year before she can make up the loss due to the abolition of likin, and must also find Taels 42,000,000 a year to counter-balance the loss entailed by the abolition of the other duties mentioned. Evidently the Nanking Government, when promulgating its recent order, copied the