BRITISH NOTE.

Auckland Star, Volume LVII, Issue 303, 22 December 1926, Page 7

BRITISH NOTE.

• ATTITUDE TO CHINA. SURTAX CLAIMS CONCEDED. DEFENDING CONCESSIONS. (By Cable.—Press Association.—Copyright.) (Received 12 noon.) SHANGHAI, December 21. It is reported from Peking that plans for the defence of the foreign concessions in Shanghai, in the event of the Red occupation of the district, are under consideration by certain Legations. A scheme fer having 5000 international troops available is mooted. SYMPATHY WITH ASPIRATIONS LONDON, December 21. A memorandum which is virtually a declaration of the considered policy of Britain in China, has been handed to the interested Powers at Peking by the British Minister, Mr. Miles Lampeon, says the diplomatic correspondent of the "Morning Post." Official quarters are reticent regarding the matter. It will not be decided whether the memorandum will be published until the opinions of the Powers have been received. The correspondent understands that the memorandum, while sympathetic toward the national aspirations of China, emphasises that recognition of regional Governments cannot be considered, as support for one particular faction would be tantamount to interference by Britain in the internal affairs of China. From another source it is learned that the collection of surtaxes by the Chinese is conceded by the memorandum, and also a modification of extra-territoriality regarding the administration of justice. According to the "Daily Telegraph" the presentation of the memorandum preceded the arrival at Peking of t,he British Minister, because it is not connected with the Hankow conversations. The Note is not associated with these conversations; indeed, the proposals have been before the Chinese Government for a considerable time but are only now presented as a Note. It is proposed that surtaxes should in future be collected at each port through which goods pass instead of being collected at Peking; thus the money would be available for the use of the provinces in which it i's collected, instead of all going to the Central Government as hitherto. NO DESIRE TO INTERFERE. All the Chinese parties represented at Peking have been presented with copies of the Note, and there is hope that it will be favourably received. Britain emphasises that she has no desire to favour any party, or to interfere in China's civil war. The "Daily News" correspondent states that the Note points out that Britain's policy in China is not dictated by commercial Imperialism. It also recognises that the time has come for a revision of existing treaties. The paper adds: "It is a bold move for reconciliation with the new China. It is not intended as an ultimatum to other Powers." i The interest on the huge Boxer indemnity is paid by, China out of her Customs duties, which in 1918 were fixed by the Treaty Powers at an effective 5 per cent ad valorem. Following China's declaration of war against the Central European Powers, the Entente Powers (with the exception of Russia, which suspended payment only on onethird of hor shares) agreed to the postponement of "Boxer indemnities" for five years. A new treaty was signed at the Washington Conference, 1921, which provided for the convening of a Special Tariff Conference to authorise the levying of a surtax of 1\ per cent "from such date, for such purposes, and subject to such conditions as it may determine." In addition a total surtax up to 5 per cent might be authorised in the case of certain luxuries to be determined by the conference. This conference met in Peking on October 26, 1925, but the collecting of information and the presentation of its report has been delayed by the chaotic state of China, and the fact that there is Government of China to receive the*Teport. China contends that the limitation of her Customs duties to 5 per cent, a large sum of which is payable as indemnity, handicaps her financially to such an extent as to cripple development.