At the present time, the Central Government is not strong
enough to stop these abuses.

The administration of the Customs is only partially in the hands of the
Chinese. By treaty, the Inspector-General, who is at the head of the
service, must be British so long as our trade with China exceeds that of
any other treaty State; and the appointment of all subordinate officials
is in his hands. In 1918 (the latest year for which I have the figures)
there were 7,500 persons employed in the Customs, and of these 2,000
were non-Chinese. The first Inspector-General was Sir Robert Hart, who,
by the unanimous testimony of all parties, fulfilled his duties
exceedingly well. For the time being, there is much to be said for the
present system. The Chinese have the appointment of the
Inspector-General, and can therefore choose a man who is sympathetic to
their country. Chinese officials are, as a rule, corrupt and indolent,
so that control by foreigners is necessary in creating a modern
bureaucracy. So long as the foreign officials are responsible to the
Chinese Government, not to foreign States, they fulfil a useful
educative function, and help to prepare the way for the creation of an
efficient Chinese State. The problem for China is to secure practical
and intellectual training from the white nations without becoming their
slaves. In dealing with this problem, the system adopted in the Customs
has much to recommend it during the early stages.[30]

At the same time, there are grave infringements of Chinese independence
in the present position of the Customs, apart altogether from the fact
that the tariff is fixed by treaty for ever. Much of the revenue
derivable from customs is mortgaged for various loans and indemnities,
so that the Customs cannot be dealt with from the point of view of
Chinese interests alone. Moreover, in the present state of anarchy, the
Customs administration can exercise considerable control over Chinese
politics by recognizing or not recognizing a given _de facto_
Government. (There is no Government _de jure_, at any rate in the
North.) At present, the Customs Revenue is withheld in the South, and an
artificial bankruptcy is being engineered. In view of the reactionary
instincts of diplomats, this constitutes a terrible obstacle to internal
reform. It means that no Government which is in earnest in attempting
to introduce radical improvements can hope to enjoy the Customs revenue,
which interposes a formidabl