The Archive · 1926

Principles of Taxation in the South

nom Of Own Peking, Sept, 26.

Questions related to the bigger problem of the political status of Canton are in the eye of the Powers. Eyer since negotiations were'started between Hongkong and Canton, Britain, it is suggested, has afforded the anton Government some measure of de facto recognition which is growing with the extension of its influence. There has been little formality' in these relations, but now Canton has apparently seen fit to make a bid for much broader and more official contact, The announcement of the termination of the boycott on October 10 appears to be contingent upon the acquiescence in the scheme of taxation on foreign goods which is tantamount to implementing the Washington Conferen" the. Canton zone, The Nationalists expect to force Britain's good offices by brandishing the boycott weapon. They are already making promises and, it is said here, have already out feelers to the British Consul-General looking towards the ase sumption of the responsibilities belonging to Peking. So many factors are involved that the Pewers will probably keep clear officially for some time to come from this sen of Some drift of foreign opinion, however, may be gathered from the contrasts now made in conversation by persons in authority between the Canton taxation proposals and the spread of haphazard taxation. even under the nose of the Tariff Conference in Peking itself, Preparing to Renew Trade Hongkong, Sept. 26.

Chinese-owned river steamers which have been laid up several months are in dry-dock preparatory to resumption of the Canton run on October 1.

British steamers are bri ing ingly large number volume. of sengers and a greater cargo from Canton.—Reuter.

Canton Communique anton, Seri, 22, (Delayed).

The Canton Foreign Office has authorized the publication of the following Commnniqué:—"The Ao inister for Fe eign Affairs has informed His British Majesty's Acting Consul-Geneval_ that arrangements have been made with the Strike Con mittee for the termination of the doyeott.

"To what extent this step wil Tend to a restoration of IChinese-British trade relations must depend: on British policy and action and on British comprehension of Chinese nationalism, its ideas and force '4 principle of energy in the work of unifying and modernizing China.

The New Taxes Sept, 28, (Delayed).

'Dhe Canton Information Bureau fesses the fellowing:—"Phe 'Canton Gazette' published a special article to-day dealing with the new special taxes to be levied connexion with the liquidation of tha boycott.

"Referring to the special eon-sumption tax of 2h per cent. on ordinary imports and of 5 per cent. on imported. luxuries together with the special production or producers' tax of 22 per cent. on exports, the article emphasizes the right of the Government to levy these special import taxes, which, it gays, fiscally fare internal taxes and not customs duties, "The article goes on to say that Chingy has always asserted anc enforced her sovereign right to levy consumption taxes as well production or excise duties on Jocally-produced commodities, "It says that it is proposed to secure: the ce-operation of the Chinese Maritime Customs in orde> that the new toxes may be levied, with the least disturbance to trade. The alternative to such ea-operation is the creation by the Nationalist! Government of an entirely independ ent organ of collection.

"The article ends with " signifi. ant and important reference to the! abolition of likin, which, it ig de-dered, will be effected as soon as the new taxes prove successful."

It says: 'We therefore commend the new taxes to the business community, for not only' is th Nationalist Government completely, thin its right in levying them, but their successful application will mean the abolition of likin—a policy to which the Nationalist Government is committed. Its axiom of trade is that within: limits the rate lof taxation is a matter of indifference to the merchant, provided that itis applied systematically, equitably and economically and with a minimum of annoyance to the

Text read from the printed page and cleaned; old type leaves the occasional error.

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