Mar, 27, Customs difficulties in Canton have taken many curious forms in that port over the duties on ug and counter-actions Kerosene oil, as lately: revealed in these columns have been truly, remarkable. Briefly the Customs authorities have been confronted by the problem of coping wi evasions which naturally ari from the imposition of high duties, To "raise revenue an import duty of 30 cents per £2! Hon was fixed for imported resene oil, This put a_premium on local efforts at distilling Kerosene from fuel oils, possessing, say, a 95 per cent. kerosene content, those oils being subject the much lower duty of 1)
per gallon, The Govern-Mment's motive in fixing this latter low duty was the praiseworthy one of encouraging local Industries, Transport companies and factories use these fuel oils extensively. To defeat the distillers and, at the same. time, continue to ald industry, the Government established a bonding scheme whereby fuel oils imported for distillation. were made to pay an additional duty of 15 cents per gallon, Yet this practical measure was found to be hopelessly obstructed and i is reported that the obstruction wag mainly due to the influence which the local distillers brought Council who are very largely a to bear upon the South-West Jaw unto themselves in Canton, Still determined to solve the pr blem, the Government instructed the ' Customs to collect on kerosene distillates the same duty as that imposed on kerosene oil and to apply the additional 15, cents per gallon on light gas, oils under a new. scale of duties for fuel oils, Then came the most amazing turn in. an amazing "story, the Custom officers in Canton were preven ed by the local Provincial ai thorities from putting the new tariff into effect. Foreign com patties which had been importing kerosene then tried to, lish ling plants their own only to. be met by: barefaced discrimination, under the disarming but misleading pretence that the authorities were merely endeavouring to subsidize local industries, The Chinese Government has exercised its policy of tolerance and so has long "agreed to let, Kuangtung and the South-West Council go their own gait, within certain very loosely defined limits. This policy has not been, unsuccessful. It has averted the danger of a—complete of the heavy subventions made final rupture, although. in view by Nanking to Canton in cash and material, the price pai has been high. Moreover the Customs authorities have not been able to conceal from public view the undoybtediy marked prevalence of smuggling, in the Southern port. Since the Fukien revolt flared up and ignominious. ly petered out, it is understood that the relations between Canton and Nanking have been more The close understand-iting between General Chiang Kai-shek and General Chen Chi-tang is favourable to the continuance of this entente. Rumours that Mr, Hu Han-min might consider abandonment of pleasant retreat afforded him by Hongkong to take again an inclined to throw on his friendly jeffiees too heavy a strain. Yet it is obvious that the whole position is highly unsatisfactory to jan administration which is in need of revenue and desires to see satisfactory relationships established between it and foreign importers.
The credit of China, in fact, leporids greatly on the confidence of the mercantile world in the institutions which are created to perform the executive functions of government. When great department like the Chinese Maritime Customs which ears almost alone the burden China's credit has to admit defeat by the arbitrary action jof provincial officials, credit is bound to be shaken. The foreign trader asks for no special favour lin China. He is not even prepared to cavil at legitimate measures taken to foster local industries, By no stretch of the imagination can this kerosene oil ramp come within that reserva-ition. The subterfuges and lavices adopted to allow the local distillers to continue in heir questionable courses fare not at all creditable. They do not encourage the belief that fair trading is possible in China. Yet, from information achly available, it is judged that the Government's policy is designed to develop foreign confidence in the market here. If the authorities in Kuangtung. would cast their gaze seaward jand to the further south-west, they would per hay able to obser 'a large Chinese population in the British Colony of the Straits Settlement thriving freely in developing their mercial enterprise, without ith the active and far-sighted assistance of a Government to which they themselves are foreigners. The Government at! Nanking is admittedly in a diffijeult position, It cannot assert its authority over Canton,—It jsuffers—with the foreign jporter—from the grievous breach made in its revenues by the flout. ing of the Customs. Moreover it is busily engaged, so far as its Present resources permit, in cultivating, on equal terms, the services and assistance of foreign enterprise. If its well-levised plans for the econo! reconstruction of the country re to be put into effect with any hope of success, this policy will have to be developed, In such cir-Jcumstances. it is incumbent on responsible Chinese statesmen to firm deprecating local contumacy which ix in essence directly hostile to the G ment's declared intentions. This is written without any desire to perceive a grave portent in what may be merely a local ebullition incidental to "a. transitional stave of government. Even in Nanking it is not alway: ible to secure complete ce-ordination departmental policies. A istry seeking to develop local industries may at times find itself at viance with another Ministry which is pressing to the same goal of reconstruction by another path. In time may be able to dotes properly ordered. technique for ithe close ce-operation of all departments. Meanwhile it is highly desirable that the Government should be supported by bringing to public notice administrative lapses which tend to hamper the faithful execution of its. plans. Thus this unsatisfactory treat: ment of an important industry in Kuangtung requires careful and a diligent search for priate' remedies,
Text read from the printed page and cleaned; old type leaves the occasional error.