CO129-558-11 Mission of Sir F. Leith-Ross to China- proposals for a Hong Kong - China customs... 29-9-1936 - 30-12-1936 — Page 126

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(3) We should seek an agreement with the Japanese

Government as to the foreign personnel of the Customs

Service.

(4) We should urge the Chinese to undertake a

revision of the Custoins tariff, with a view to reducing

prohibitive rates and increasing the revenue.

(5) Export credits are essential for the encourage-

ment of British trade with China and the Export Credits

Guarantee Department should be invited to devise a scheme,

suitable to conditions in China, and to put it into force

as rapidly as possible.

(6) The Bondholders Committee should be urged to

expedite a settlement of existing defaults on the basis

of the offers made by the Chinese Government.

for this

(7) The British banks in the Consortium should be

requested to work out a proposal for an intern-tionel

Railway Loan, on the basis that orders for materials should

be allocated to the countries participating in the loan

in proportion to their respective participations:

purpose the present understanding that all orders should

be placed by open tender should be abrogated. If a market

loan is not possible, the grant or a guaranteed loan or

credit for the purchase of railway equipment in the United

Kingdon should be seriously considered.

(8) Every effort should be made to secure the

appointment of British engineers on the management of

Chinese Railways and a list should be prepared of suitable

candidates for such appointments.

(9) The arrangements for the placing of orders by

the Boxer Purchasing Commission should be overhauled so as

to ensure that the materials supplied are suitable and

the prices charged reasonable.

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