500.A4e/686: Telegram
The Secretary of State to the American Delegation
278. Referring to third paragraph of your number 566, November 20, noon. Concerning your second proposition, the Department does not have any objection to holding a conference for implementing the Washington Treaty surtaxes and specifying the conditions, provided any prospect exists that compliance with the conditions would obtain throughout China and if a willingness to participate in a conference such as this were shown by the treaty powers and if such a course is recommended by you. However, if the resumption of the Conference with the purpose of having a discussion generally of the subject of China’s tariff is insisted upon by the present Peking Government, the Department still is of the opinion that probably the existing Peking Government would not have the power to bind any considerable part of China and that the so-called Canton authorities would probably repudiate such a conference. However, it has been the attitude of the United States to do everything it can do to make clear that it is willing to meet the aspirations of China in regard to the tariff question. If such a demand is made, your recommendations would be desired as to what ought to be done. The cooperation of the other treaty powers would certainly be necessary for any such general conference.
As you suggest, your fourth proposition would mean probably a break with the other powers. To the Department, it seems that at present this is inadvisable. If, however, control of most of China is secured by the Canton authorities, perhaps we may have to give consideration to entering into a treaty by which our tariff control will be given up but in which most-favored-nation tariff treatment will be insisted upon. Probably the best course to pursue at present in order to show that we are willing to comply with the Treaty of Washington is the adoption of your proposition number three, which to the Department seems to be feasible and worth considering. See in this connection telegram No. 273 from the Department, November 19, 4 p.m.,28 which communicated the telegram received from London28 in which is contained Wellesley’s opinion that the better course for the treaty powers would be to grant the additional surtax of 2½ percent at once and without reservations, the surtax to be collected if possible by the Customs Administration. You should consult your [Page 860] British and French colleagues for the purpose of getting, if possible, agreement upon joint action. It should be possible, it seems to the Department, for the Powers simply to give notification to the Chinese Government that an authorization is given for the surtaxes to be collected through the Chinese Maritime Customs.