CHINA'S TARIFF.

New Zealand Herald, Volume LXII, Issue 19101, 20 August 1925, Page 8

CHINA'S TARIFF.

It is apparent that one of China's pivotal troubles, that of an inadequate tariff, is likely to have salutary treatment soon. The Chinese Government has co-operated in arrangements for a tariff conference in Peking under the provisions of the Nine-Power Washington Treaty. Upon the question of customs duties China has been as reluctant to welcome the intervention of foreign Powers as in the matter of the exercise of their extra-territorial rights ; but at Washington the necessity for their action, in China's own interests, was pressed. It was shown also that these duties were unduly low, and that, until they were considerably raised, China's finances would continuo to be perilously weak. t Accordingly, it was agreed that they should be so revised as to give China an effective 5 per cent., which is now in operation, and to impose eventually a surtax of per cent. These two concessions, it was estimated, would give the Chinese Government an additional revenue of about £9,000,000. A further increase was contemplated as soon as the Government had abolished certain of its taxes hampering the country's internal trade. A commission was to go into details. The completion of this remedial scheme has been hindered by the chaos created by faction strife in China. This difficulty has been so far overcome that the Peking Government evidently feels itself strong enough to take steps, in conjunction with the other signatory Powers of the treaty, toward full fiscal reform. It is impossible to exaggerate the importance of this special tariff conference. China is carrying a crushing burden of debt. Large foreign loans have been inevitable, and these, while entailing heavy liabilities for interest, have been misused by rapacious rival militarists. So things have gone from bad to worse. Expert investigation and advice, supplied by other Powers, are needed to find a way out of the thicket; and the forthcoming conference should prove the definite beginning of better tilings.