Canton Government since Marcu, 1921.
The American Government's position en the release to the Canton Government of the Customs surplus allocated to it and accumulated since last March betrays a complete confusion of the issue. The release of the funds held in trust does not imply recognition of the Canton Government. Recognition is in no way involved.
The money in question is the accumulation since last March of Customs funds which previously had regularly been paid to the Canton Government in by the Diplomatic Corps accepted accordance with an ssrangament devised by the Peking Government. Such payment was stopped last March because of internal dissensions within the Canton Government, the funds beng held in trust pending the solution of the doubtful situation created. Solution has now been reached by which the liberal civil clement has replaced the reactionary military element in the same government hitherto in. power. The Canton Govern. ment now only asks for the release of the funds accumulated and held in trust under the original arrangement. To this release the Peking Government does not consent, but it should be emphasized that the money in question is already out of the Peking Government's hands. Tt has been accumulated under the arrangement and merely held in trust. The Peking Government's refusal of consent is retroactive and therefore cannot be held valid. It is not a new arrangement that is being negotiated, to which Peking's consent is necessary, but only the fulfilment and liquidation of the old arrangement.
The Diplomatic Corps has recognized this fact im its refusal recently of the application of the Peking Government for the accumulated funds, which are now lying idle in the foreign banks, If the Peking Government is not to get these funds then there is no legal claimant other than the Canton Government. The Canton Government reinforces its legal contentions by the moral consideration that it desires this money for constructive, beneficent purposes: the Kuangtung river conservancy, road building, Southwestern University, famine relief and disbandment of troops. It stakes its credit on its word that the money will be so used and has alrendy given token of its sircero desire for construction by its abolition of gamble.
and lotteries in all forms, thus cutting off $10,000,000 of its annual revenue, ite suppression of the growing and smoking of opium and of similar evils. its abolition of the Tuchunship and the post of seven garrison com: missioners, and its introduction of municipal government for the first time in China. It claims for itself consideration as a government regularly functioning, and functioning in the best interests of its people. For this reason the Canton Government submits that the original arrangement. be respected and the occumulated Customs surplus held in trast arrangement. be released to it in accordance with the
Text read from the printed page and cleaned; old type leaves the occasional error.