THE BRITISH COMMERCIAL TREATY WITH CHINA
51
“As regards this clause, it is necessary to insert therein a clear stipulation, to the “effect that, no matter what changes may take place in the future, all Customs' duties "must continue to be calculated on the basis of the existing higher rate of the Haikwan "Tael over the Treasury Tael, and that 'the touch' and weight of the former must be "made good."
As we have already arranged with you that a declaration of this kind should be embodied in an official Note, and form an annex to the present Treaty, for purposes of record, we hereby do ourselves the honour to make this communication.
ANNEX A-(2.)
Shanghai, August 18th, 1902.
GENTLEMEN,
I have the honour to acknowledge the receipt of your despatch of the 14th instant forwarding copy of a telegram from His Excellency Liu, Governor-General of the Liang Chiang, on the subject of Article II of the new Treaty, and in reply I have the honour to state that His Excellency's understanding of the Article is perfectly correct.
I presume the Chinese Government will make arrangements for the coinage of a national silver coin of such weight and touch as may be decided upon by them. These coins will be made available to the public in return for a quantity of silver bullion of equivalent weight and fineness plu.. the usual mintage charge.
The coins which will become the national coinage of China will be declared by the Chinese Government to be legal tender in payment of Customs duty and in discharge of obligations contracted in Haikwan taels, but only at their proportionate value to the Haikwan tael, whatever that may be.
Their Excellencies
I have the honour to be,
Gentlemen,
Your obedient Servant,
(Signed)
LC HAI-HUAN and SHENG HSCAN-HUAI,
JAS. L. MACKAY.
etc.,
etc.,
etc.
ANNEX B.-(1).
(TRANSLATION).
Lť, President of the Board of Works ;
SHENG, Junior Guardian of the Heir Apparent, Vice-President of the Board of Works;
Imperial Chinese Commissioners for dealing with questions connected with the Commercial Treaties, to
SIR JAMES L. MACKAY, His Britannic Majesty's Special Commissioner.
Shanghai, September 2nd, 1902. We have the honour to inform you that on the 22nd of August, we, in conjunction with the Governors-General of the Liang Chiang and the Hu-kuang Provinces, Their Excellencies Liu and Chang, addressed the following telegraphic Memorial to the
Throne :-
"Of the revenue of the different Provinces derived from lekin of all kinds, a portion is appropriated for the service of the foreign loans, a portion for the Peking "Governinent, and the balance is reserved for the local expenditure of the Provinces "concerned.
"In the negotiations now being conducted with Great Britain for the amendment "of the Commercial Treaties, a mutual arrangement has been come to providing for "the imposition of additional taxes, in compensation for the abolition of all kinds of "lekin and other imposts on goods, prohibited by Article VIII. After payment of "interest and sinking fund on the existing foreign loan, to the extent to which lekin "is thereto pledged, these additional taxes shall be allocated to the various Provinces "to make up deficiencies and replace revenue, in order that no hardships may be "entailed on them. With a view to preserving the original intention underlying the "proposal to increase the duties in compensation for the loss of revenue derived from *kin and other imposts on goods, it is further stipulated that the surtaxes shall not “be appropriated for other purposes, shall not form part of the Imperial Maritime "Customs revenue proper, and shall in no case be pledged as security for any new "foreign loan.
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