Poticy Impartial to. Various Worring Factions London, Jan. 3.
Reuter learns that the tenor of the note from Mr. Eugene Chen to America has not surprised authori circles in London, where it is pointed out that the policy outlined in the British Memorandum can and should be applied to China as a whole, irrespective of—warring factions, Unconditional granting of the Washington surtaxes is regarded as a necessary step towards the liquidation of promises made at Washington and if this step will momentarily give greater financial benefit to the North than to the South this in it~ self constitutes a commentary on the Cantonese claim to be regarded jas the Government of China, The British Memorandum urges that it is for competent Chinese authorities to decide all questions as to the disposition and banking of the Jadditional revenue. This cannot be regarded as intervention by either side, Regarding the statement that, the granting of the surtaxes and their disposal locally tend to make Shanghai a theatre of war, it is pointed out that inevitably and re-Jgrettably: in the course of civil war in China centres of trade like Shanghai are always the goal of contending factions, The British proposals do not create q new si tion in that respect. It is further stated that British policy in this matter la not influenced by conside: Jations of what party may control Shanghai nor would it be deflected by such a transfer of authority as Mr, Chen suggests is likely to take place.
Finally it is argued that the sw taxes, in effect are already being levied Ly the Cantonese authorities at the ports which they control, Therefore Mr. Chen's note implies that these taxes should be paid to Canton alone and not to their op=
Text read from the printed page and cleaned; old type leaves the occasional error.