Failure to Meet Share of Payments Shanghai, July 27.
The following telegram of instructions has been "sent. by the Inspector-General of "Customs to the' Commissioner of Customs, Cane ton, for transmission to the Canton "The Canton communique issued at the time of the selaute of the Liang' Kuang' Customs revenue slated chat provision would be made {or (a) "the administrative expenses the Customs Houses in the two provinces and (b) the Liang Kuang hare of the service of the foreign foams and indemnities. char the Customs" Also, there was. a circular" telegram to the. country chated. May 30, 1031, by the newly organised" authorities 10 the effect hat no acts of the National Gov-tinnment "subsequent to May. 28, 104, would be Tespected. "In addi: Lion 'a communication dated June 16, 1951, was sent. by" the. Standing Committee of the Canton authori: tics signed by Alcssts. Tang. Shao-Yi, Wang Ching-wei, Sun fo, Koo Ving-fern and vilsu' Chung-chi- to various banks Uhroughout the coun try and to the National Loa King' Fund Trustees which catogoically stated that. while. acts of the. National "Government subsequent to May 28, 1931, would not be recognised, domestic bonds and treasury notes issued prior to that date would be scrupulously honoured; and their service carried on as "It is thus admitted that the Liang Kuang Customs Houses should contribute their proportion of the cost of service of Customs: secured obligations outstanding. May 28, 1931. In 1930, and also in the first four months of 1981, these offices produced about 11.5 per cent. of total Customs revenue. In 1931, the service of interest and amortization of—Customs-secured obligations for indemnities and foreign and domestic bonds and trea sury notes issued before May 28, 1931, and for which the Inspector: General of Customs has to provide funds, is as follows: foreign loan and indemnity obligations, U.S. dollars 38,204,000 approximately, equal to C. G, U. 95,510,000; and domestic Loan' obligations, silver dollars 114,677,000 approximately. The share of the Liang Kuang Customs houses is thus 11.5 per cent. of these sums, or about C.G.U. 915,000 plus silver dollars 1,100,000 monthly.
"Commencing from the seizure of the Customs revenue on June 10, only the old per cent, duty was te-mitted to the Inspector General; the additional duties were entirely seized, Hence during the month of June there were received from the Liang Kuang Customs total remit ance aggregating only $1,103,846; during July up to Jaly 15 total remittances aggregating only $196; "it is clear that these remittances are grossly inadequate to provide the amount which the Liang Kuang Customs should contribute as above. set forth T am therefore instruct fed to i at sufficient, remittfinees be made to Shanghai im. mediately in order to make good ed, the shortage, and that the proper amounts be remitted promptly in fature."—Reuter. gold. Mr, Moh Teh-hui, China's Chief Delegate at: the Moscow Con ference, insisted that the amount should not 'e more than $10,000,000 gold. The Chinese delegation also [Suggested at. the conference that a committee of special experts be appointed to give an accurate estimate fof the actual value of the Chinese Eastern Railway. This proposal, however, was relected.by the Soviet Even if the amount for which the railway shall be redeemed is agreed another difficulty which stands. in the way Is the question of how the amount shall be paid by China, The Soviet. Government, wants. paid in cash but, alternatively, sug~ [gests it to be paid from the customs collected by the Chinese Gov-lornment from Soviet goods entering Chinese territory. In. other words, all duties an imported goods from Russia shall not be payable in cash but shall be credited by the toms. authorities until the total Jequals the amount fixed for the tedemption of the Chinese Eastern Rail proposal was rejected by the Chinese' delegation that it would be ext to. distinguish Soviet. goods those of other countries coming to [China through Soviet territory.
The Soviet Government also. in" sist that, if China agree to the lat~ ter proposal, the Managing Director Jot the Chinese Eastern Railway shall be a Soviet citizen until the debt has been wiped out. 'The Chi-Inese Delegation proposed that a Chinese shall henceforth be manag ing director and one Russian and la mother Chinese assistant directors Jof the railway Another Chinese proposal was that, in future, all depart mental heads' shall be Chinese ug while Soviet citizens may be ape pointed assistant heads of depart= ments.
These problems are still being keenly debated in Moscow.—Reuter, Harbin, July 20, A curious situation has develop-joe here in connection with the Status, and methods of paying salaries," of the Soviet employees of the Chinese Eastern Railway.
Recently the Soviet manager and Soviet _members of the Board of Directors caused tobe circulated petition among all Soviet employees of the CER, requesting thay future the salaries of all Soviet employees. be paid. through the So-ict State Bank (Dalbank), -whieti has an office here, As all high officials had already signed the petition, it thus became practi-ally' obligatory for all other 80- Viet employees, heads of depart= ments, ete, to' sign also. The cet of the petition, supposedly, was to enable the Soviet employees. to draw their pay through. the Dale bank when they required " funds rather. than receive their sala definite dates as has been practice in the past. Oficially, was stated that the purpose wag to encourage thrift and prevent the employees squandering money on amusements, The petition was accompanied by a questionnaire, which all Soviet employees were asked to fill in, one of the questions being! "Would you be willing to return to Russia in the event of your services being required in the U.S.S.R.
This question naturally jerable speculation in view of apparent _disinclination Some months ago when the Moscow authorities rested 2 number, of "Russian employees to return several refused "and eft Harbin for Japan or Shanghai, In view of the desire of practi cally all the Soviet employees the CER. to receive their salaries through' the Dalbank, it is expect= ed that most of them will also agree to return to the U.S.S.R. in the event of the Moscow authorlig this at any time in—Reuter, 'Tu Third Sectional' Kuomintang has issued a manifesto denouncing Mr. Eugene Chen in connection with his visit to Japan "to nego-jate with the Japanese Government regarding a secret treaty." The telegram also denounces the Japanese Government because, it is alleg-aims at prolonging civil ware fare in China by receiving Me. Eugene Chen who is the delegate of the rebel leaders in Kuangtung.
Text read from the printed page and cleaned; old type leaves the occasional error.