CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 43

11

47

scheme put forward by the Peking Government in the 14th year of the Republic. They annexed sixty percent of that scheme, and forgot the remaining forty! It would be a good thing to do away with likin, if other sources of revenue could be found

to take its place. The Nanking scheme would not adequately

do so.

In financial affairs the Nanking Party is not particu-

larly strong: the men they put in charge of them are very in-

experienced, Hu Han-min himself is totally ignorant of economic

laws, and unfortunately for the country, he refuses to listen

to those who know. The Government has more or less realized

the mistake they have made, and has accordingly arranged for

the people to petition "of their own accord" for the postpone-

ment of the new scheme. This would save their face. If Nanking

suspends the enforcement of this order, Kwongtung will do like-

wise, notwithstanding the fact that Canton has already announced

that it would come into force on the 1st September next. The methods recently adopted by the Nanking Government for raising money have done the people great and lasting harm. They tend to tie up a good deal of money which should be in circulation, and have already killed much business. Owing to his personal experience, Chiang Kai-shek appreciates somewhat the difficul- ties in raising money to maintain his huge army. His colleagues in Nanking, however, knew nothing about it. Their adventures in finance have proved them to be novices who have tried to bring into practice certain undigested knowledge acquired from books! The result is that the Nanking Government, including Chiang Kai-shek, found themselves in financial difficulties.

The Chinese Customs.

33. hen asked by His Excellency the Governor how the posi- tion of the Customs stands, Kr. Liang says that the whole ques- tion is held in abeyance. On the 4th June, 1927, Koo

Ying-fan order the Shanghai Customs to turn over to the