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place the Kowloon Commissioner in a false position with a de
facto Administration claiming, by right of conquest as it were,
to control his fiscal procedure. This being understood, it is
desirable for you to seek an interview with his Excellency the
Hongkong Governor, and ascertain informally the attitude likely
to be adopted should the question of tariff outlined above come
up for consi deration.
a.
What preceds may be epitomised as follows:-
The new de facto Administration in Canton will probably
introduce the new tariff throughout the Province;
may
b. While the Chinese Maritime Customs at Canton, etc.,
be compelled to submit to force majeure and levy duty
according to a revised tariff, as has been the case at
other ports in occupied territory, the Kowloon Customs
Authorities, as you know, are exceptionally placed in
that they cannot be coerced by force to change their
normal procedure at the Kowloon Railway Station. But
should they voluntarily agree to introduce the new tariff
at the Railway Station, they would incur the strong displeasure of the de jure Government; and the Colonial
Authorities may question te advisability of the Customs
applying a de facto tariff at the Kowloon Railway Station
on the ground that acquiescence or non-objection on their
part might be construed as tacit recognition of a hitherto
unrecognised régime the so-called "Reformed Government"
or some such similar Administration which will be established
in South China; and should the de jure Government instruct
the Inspector General to adhere to the old tariff in Hongkong,
it is likely that the Colonial Authorities will desire us
to cease collecting revenue at the Kowloon Railway Station
for the time being, and thus probably avoid misunderstanding
in this connection with Canton and the recognised Government
in Chungking.
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