693.003/822
Memorandum by the Counselor of Legation in China (Perkins)81
Subject: Conversation between Mr. A. H. F. Edwardes, Officiating Inspector General of Customs, and Mr. Perkins, on April 12, 1928.
Mr. Edwardes said that his plan regarding Customs matters was that the Chinese, laying political considerations aside, should form a commission, composed of both Northerners and Southerners, to deal with the treaty powers with a view to putting into effect the “interim tariff rates” until such time as the Chinese should be able to establish a reasonable national tariff act. This plan contemplated that the present illegal taxes should be abolished, such as the levies which are now being collected on special imports of oil, tobacco, etc. It also provided that a certain limited portion of the surplus should be set aside for the purpose of making payments on the unsecured debt. This amount would be very small and would not even suffice to pay current interest, but it would show a measure of good faith on the part of the Chinese with respect to their financial obligations. This fund was to be administered by a joint commission of Chinese and foreigners alike.
Mr. Edwardes said that, in his visit to the South, this plan was favorably received by the civil officials of the Nationalist Government but that the military people would have nothing to do with it and that it therefore had to be abandoned. The military were not interested in his proposals because, as they said, they would take Peking in a month or two and then there would be but one government to deal with matters of this kind. It appeared, therefore, that at present little if anything could be done about Customs matters until [Page 390] the Nationalists had finished with their anti-Northern expedition. Perhaps by that time they would be in a more chastened frame of mind and it would be possible to make progress along the lines which he had described.
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Mr. Edwardes stated that there was no Customs surplus at the present time although all of the foreign loans secured on the Customs were being met, both as to principal and interest. With regard to domestic loans, only interest payments were made during the past year as funds were insufficient to meet amortization instalments.
Mr. Edwardes’ plan also provided that the increased revenues to be derived from the application of the “interim tariff rates” should be divided among the local Chinese authorities in the areas where these revenues were collected. From these new revenues, however, there would be set aside such amounts as were to form the fund above mentioned for the purpose of making payments upon the unsecured debts.
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- Copy transmitted to the Department by the Minister in China in his despatch No. 1482, April 26, 1928; received May 26.↩