Peking, March 2.
The Southern campaign for a share in the Customs surplus, and particularly for the release of the accumulated share, has come very near a_ close. As is generally known the Diplomatic Body had virtually agreed to a release of the accumulated surplus for certa: n specified expenditures, such as famine relief, Canton river conservancy, ete., when the American State Department surprised concerned by cabling that since the Peking Government did not agree to such a release and since the American Minister was aceredited to Peking and to no_ other Government or faction, America could not agree to the special dispensation arranged by the Diplomatic Body. The Canton representatives in the north then found it essential to submit a budget of expenditure which would give the Northern Government such face that they would not dare to cour ter Canton's proposals. This was drawn up—the details are still secret, unfortunately—and foreign authorities in Peking assured Canton that it would be acceptable tu all concerned and that Peking could perforce agree, thereby overruling America's objection. The Southern delegates, having gone se far, were given a serious setback when contain venerable members of the Canton "safety-first" party absolutely vetoed the arrangement and demanded a larger share in the spoils. Here, presumably, en-doth the first session.
It may be of interest, howe: to put before the foreign publi. even though the cause involved so nearly dead, the memorand: m which Mr. Quo Tai-chi submitted to the Diplomatic Body as a rejoinder to America's absolute veto. The text. which follows, was cabled te Washington in summary two weeks ago.
Text read from the printed page and cleaned; old type leaves the occasional error.