The papers have called attention the default on the coupons of the Mukuang Railways 5 per cent. Gold Loan 1911, on which the outstanding amount of $5,610,800 is row unpaid, this constituting the third default upon Chinese Government bonds since the end of Cetober lust. Including the unsecured 8 per cent, loans, the bonds of which were issued to Vickers and Marconi in payment for contracts executed, these firms afterwards selling them to th investing public, the total of the Joans upon which China is now in default is £11,485,400. The financial and commercial papers generally regret this decline from the usual high standard of probity for which the Chinese have bean famed, but admit the default is not deliberate as in the case of many South American Republics. They all, in short, regard it as due to wasteful military expenditure which prevents the money ever reachinis the Government. At the same time there is a general belief that the Chinese Government is contemplating the consolidation of her financial liabilities and in that case her credit will once more improve.
Tariff! Taxation There is" nothing fresh as yet with regard to the new Tariff. The Chambers of Commerce have not yet expressed any opinion on the inclusion of specific articles in the 20 per cent, and in the 80 per cent. are, however, sending. in their opinions to their various Chambers of Commerce and the Foreign Office ought therefore to be furnished with adequate guidance. There will be no real objec than to the inclusion of the articles in the 30 per cent. category, but in several cases—notably cotton goods anticipate criticism in. respect to Category Number 2. I think the commercial world ix now fairly alive to the fact that the Chinese Government has not undertaken to abolish likin og a condition of tariff autonomy. It has only prosed to do its best, but we understand that if it does nothing whatever we cannot object—or if Wwe object it will toyo no effect—to the restoration of free tariff fixation. The Foreign Office will not have an easy task to persuade the commercial world to accept the results of a policy which will entail such serious results,
Text read from the printed page and cleaned; old type leaves the occasional error.