CO129-502-8 China- general situation 27-4-1927 - 15-9-1927 — Page 87

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prefer to reserve final comment even as to that. Mean-

while my belief is that if we could deal firmly and

at once with one item of increased tonnage dues which

is in force since July 11th we should thereby show

Nanking Government that we mean business and be in a

much stronger position to deal effectively later with

sequal of surtaxes. I therefore make definite suggestio

that I now instruct His Majesty's Consul General at

Shanghai as proposed in his telegram No.251 to me to tell

British shipping companies to proceed to sea without

paying increased tonnage dues and that I inform my

colleagues that I am doing so. May I do this?

With regard to danger you mention of possible

retaliation by withdrawal of customs extra-treaty

privileges to shipping, Inspector General considers that

we need not take this too seriously because it would in

practice be very difficult for customs to carry into

effect.

Addressed to Foreign Office No. 1213, repeated to

Tokyo, Shanghai, Hongkong and Commander-in-Chief.