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Communication

An income for China

To the Editor of the CRIMSON:

It is an outrage and a menace to the peace of the world that the countries represented at Washington cannot come to an agreement regarding the most just and pressing question confronting the Chinese government today--that of an increase in revenue. Not only is the Chinese government sorely in demand for money, but her infant industries need a reasonable amount of protection. These are rights which are undeniably due the Chinese people, unless the integrity of their country is to continue to be a baseless sham.

The steps by which China proposes to regain her financial autonomy are as follows--first an increase in customs duties from a theoretical five per cent ad valorem to an actual twelve-and-a-half. Only a day or so ago the Japanese refused to assent to a compromise rate offered by Canada at seven-and-a-half per cent. Last year she succeeded in blocking a proposal to revise the tariff schedule to bring about an effective five per cent, guaranteed to China by treaty (whatever that may signify).

Secondly, China asks for the withdrawal of alien post offices. Not only do the presence of these post offices deprive the admittedly efficient Chinese Administration of Posts and Telegraphs of considerable revenue, but they are notoriously used for smuggling undesirable goods into China.

Thirdly, China asks for the complete return of the railroads. The railroads now run (With the aid of foreign experts) by the Chinese government show a high degree of efficiency. For instance, the Peking-Suiyuan line (planned, constructed and managed entirely by Chinese) is one of the finest pieces of engineering work which has come to my attention. The railroads under foreign control in China are used for questionable political and economic purposes as well as depriving the Chinese government of rightful revenue.

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The delegates at Washington who are blocking these proposals cannot plead ignorance of the consequences--similar ones have been only too obvious in the past. Without an immediate increase in revenue, China cannot hope to have peace within her borders. The Central government needs money to as set its authority over rebellious Tuchuns (Provincial Governors), and brings under her wing all military organizations. If, on the other hand, the present situation of the Central Government having to cater to these organizations for revenue, continues, then one may look for a continuance of semi-anarchical conditions.

Moreover, it is impossible for the government to carry out its proposed financial reorganization--the most important provision of which is the abolition of the odious Liking (internal customs duties)--when it must cater to just those authorities which owe their luxurious positions to them. During the period of weak Central Government these duties have increased to an enormous extent, and they are now paralyzing all the agencies of law, order and prosperity in the country.

Considered externally, China has various debts to pay off. Only recently she failed to meet a small obligation in this country. A great protest followed, although nothing is said when other governments cannot meet interest payments which run up into the hundreds of millions. If China cannot pay her outstanding debts, it means more debts. More debts bring with them more large concessions. And it is just such things as these that inevitably bring in their train serious international complications and disputes. JOHN O. CRANE ocC   December 8, 1921.

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