Taxation—The tendency in Chine! inst be more and more towards developing her industries and making her own manufactures, Against which we could not hope t0 compete, considering the differences iiwing standards. China's new import duties imposed this year, which have. registered substantial Advances, will also tend to protect these new industries. "Tt seems to the the general opinion among merchants that this tariff is not unreasonable, but this opinion presupposes the aboljti ether provinei still have to be convinced has been definitely abolished out side of the Treaty Rorts. Even so) Nanking's agreement to abolish Iikin would appear tobe more than offset by the proposed imposition of a Business Tax, which is raising a great deal of opposition amongst Chinese merchants themselves, and is to be hoped that this opposition will be strong enough to get the tax recalled, or, in any case, greatly modified.
Recently we have " been notified that the Export Tariff Schedule has. also suffered revision in order that revenue from goods paying specific duties would be more in accordance with today's values, Silver—Silver, of course, played 3 its role in the unsatisfactory trading of the year, but so much has been said and written about this commodity, now in such disrepute, fand its problems "are so. much in four minds at present, that it is! Seareely necessary for me to say very much, particularly as it seems impossible' to offer any constructive proposals. The January, 1, 1930, fow a record low level reached, but during the entire year noth Stopped its headlong course and the December 31 closed showing a total drop in the Year of some er cent. As you all know, fresh low levels have since been reached. Fluctuations of such magnitude are obviously harmful to" trade. The import trade came almost to a complete standstill, as the markets could not respond to the sharp P-|inerease so continually necessitated! thereby, and the small amount, of buying that did continue was entirely of a hand-to-mouth description, Various schemes have been suggested for the rehabilitation of silver, but artificial means of support, whilst it may temporarily assist matters, generally ends in a still greater debacle, Certainly the Proposal by American interests of huge silver Joan to China found tactically no support among the foreign community in China. Owing to military and bandit disturbances, silver has concentrated in the! Treaty Ports, and, had it been feasible to ship the normal amounts, of dollars into the interior, I think it more than probable that silver would have by this time found a higher level. "As it is, the market, seems entirely in the speculators. Nanking has on two oF three occasions endeavoured to, gold-bar speculation, but the problem is not such a simple one that can be solved by the issue of mandates, Extrality Negotiatiton tions. continued throughout - the hands it has, of course gobo to year between H. M. Minister and and ruin, In spite of fight Dr. C, 'T, Wang-on the question of having been concluded several the abolition of -extraterritoriality. months We are only human. and apt to] become a little impatient at the apparent futility of proceeding with such negotiations at a time when China was again in the convulsions of civil war and the power of.
Nanking was hanging in the toil arty, politics, Unfortunately, we are caught in which China is subject just as much Jas we at home. Nobody believes that the subversive elements China have teen silened for good. fr The present peace has not-been of Jong enough duration to allow of this. It is essential, therefore, for the Chinese Government to walk warily, Nanking's declaration 28
Text read from the printed page and cleaned; old type leaves the occasional error.