Nanking, Oct. 3.
"China has too many outstanding questions with foreign Powers to raise any new ones."
General Chi Shieh-yuan, Tuchun of Kiangsu, was_ explaining his reasons for opposing the proposed levy of a cigarette tax in this provinces. He had been asked why he had declined to countersign the bill for such a tax when pre-peuted by the Provincial Assemb-
"The bill was passed by the Assembly and, as usual, it was presented to the Civil Governor and myself for signature. I did not sign. On all sides I heard arguments for and against the bill. The arguments were very interesting but also very confuse ing. I do not know which side is right, but I do, know that at the present time: China has too many outstanding questions with foreign Powers, to raise any new ones. This tax is apparently opposed by all foreigners because they say it infringes upon their treaty rights. The Chinese who favour the tax say that it does not. Whether it does or it does not, it will make trouble for China and- my sole object in this position is to help to keep China out of further trouble—especially in this part of the country.""
I learned in Nanking from independent, non-official sources that the tax is not favoured by any important officials, but, that a small group in the Provincial Legislature is attempting to put it through, for other, than public reasons. The general excuse is that the province needs money' for educational purposes and that this would be a method of raising the money. But the advocates do not suggest a plan of collecting this tax so that 100 per cent. of the collection would go to the province. Instead they favour the old system of farming out the tax which means that 30 to 40 per cent. goes to the province and from 60 to 70 per cent. is stolen by the collectors. This is true to-day everywhere in China with regard to likin and similar taxes.
Another curiosity of this situation is that it is favoured by certain returned students, who, utterly disregarding—_China's obligations, are seeking to damage the country that they may make fat jobs for themselves. One of them came to Shanghai some months ago-in quest of a legal method of enforcing the tax. do so as long as Chinese finance remains in its present chaotic state.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.