· November 21, 1895.]

Was

CHINA OVERLAND TRADE REPORT.

current

of Coode, Son which were in the category of

questions had been put on the shelf under the pressure of the political situation and various more grave matters which had occurred. With regard to the taxation on foreign goods as he understood Chinese manufactured goods would pay more than the fereign imports, foreign im- ports going to Tientsin, say, would pay five per cent.; goods manufactured here would pay five per cent. and 2 per cent. for coast trade duty,

Mr. DUDGEON remarked the Chamber under stood that Chinese goods were freed from taxa- tion on payment of a royalty to Sheng Tuotai.

Mr. JAMIESON said, as far as he remembered. the instructions of Li Hung-chang were that as the whole matter was in an experimental stage, the Chinese would dispense with likin.

383

Mr. GRAHAM remarked that if the land were simply purchased, under the land regulations, the Council would have no power to tax or police it.

Sir NICHOLAS O'CONOR agreed with Mr. Graham, but repeated his opinion that it would be well for the Council to acquire the land in the direction in which they wished to extend before pressing for an extension. He entirely agreed that the settlement was at present a great deal too limited and it would become much more so when the manufactures and industries got in full swing. If the settlement grew at anything like the rate at which it had been increasing, the population in ten or fifteen years would be enormous, and Shanghai would soon be the Calcutta of the Far East.

Sir NICHOLAS O'CONOR said he thought thé As to the West River, it was a matter of the whole subject would be affected by the commer-deepest concern. They might open a very large trade there and for years they had been anxious to induce the Chinese to allow foreign trade along the Chinese were coming round to the opinion that waterway and. at last, he thought that which had so often been impressed on them, namely, that foreign trade on the West River would be of benefit to the Chinese themselves: The Chinese had an instinctive objection to do anything new, but at last he thought they were seeing that the increased revenue which would result from the opening

now

(who belonged to the firm and Matthews, the lead of which Sir. James Coode. who was the pre- sident of the Royal Institute of Civil En- gineers). It was understood that if agreeable Mr. Matthews would come out here and draw up a report on the harbour works, which he would take home, and in consultation with Sir Charles Hartley would draw up a final report to submit to the Chamber, which he (Sir N. O'Conor) had every reason to think would be as good a decision to work on as could be obtained from any other direction. Of course, it depended on the Chamber how far they went on with their original intention. He thought that at the pre- sent moment the Chinese Government, more particularly at this moment. would be dis- inclined to encumber themselves with any extra financial obligations on the score of the Woo- sung Bar. On the other hand, they would be glad¦cial treaty with Japan and that the best course to allow you free facilities to improve the channel. would be to wait and see what turned on that treaty. providing foreign shipping bear the

: expense. Transit Passes --The subject was referred some He did not think they would contribute to any time ago to Peking, but in the note the matter large extent themselves at present, they might was somewhat anixed up, outward transit passes have done before the war. but the Chinaman! being confused with inward passes, and the was a shrewd commercial individual and his idea; matter never came On for serious dis- was to avoid getting into. financial difficulties, cussion at the capital. It had. However, heen | He was afraid of getting into the Bankrupt y before the Diplomatie Body, and the suggestions Court-although Sir Nicholas O'Conor did not put forward seemed to be fairly reasonable. He think there was much likelihood and he would recollected Mr. Dudgeon addressing him on the not widen any expense if it could possibly be subject at Chefoo and explaining it to him very avoided. Therefore, if the shipping could hear fully, and he thought it was a matter which the

expense, as it did in the case of the Danube, † required serious attention. It did not matter the Government would give their consent. As to the Chinese much whether the Haikwan regards the measures to be taken for the Tuotai or the foreign Customs issue these preservation and conservation of the Woo-passes, and it was a matter for, the Chinese sung Bar when the works were completed. ↑ Government to instruct the Inspector-General the Chinese would look at it probably of Customs to arrange. He did not care to say very much in the same way: it would not very much, but he had heard nothing that detract from the sovereign power. but would show a want of dispositiou on the part there would, as on the Danube, be a Board, of the Chinese to come to an understanding of Conservators, who would attend to meas res which would help trade. necessary for the preservation and conservation Cotton ginning he did not think it was of the river. He was inclined to think that practicable for him to say much about, because when the matter assumed a political shape the he had un doubt it was one of the subjects that Chinese would look upon it in very much the wuld be dealt with in the Japanese Commercial same way as European countries have done, as Treaty, the Japanese being interested in the a highway in which all nations were interested, ¦ question just as niuch as the British. The and from which the Chinese Customs would bene-Japanese might be relied upon to labour the fit. Having quoted from Sir Charles Hartley's point with the Chinese, and other nationa. letter to the effect he had previously stated, Sties would have to watch carefully and see Sir Nicholas said he knew absolutely nothing what turned on it. Now that the Lioatung about M. de Marteau's scheme. He was told question had been discussed and the evacuation that M. de Marteau was in Peking, but he did of that peninsula decided upon the negotiations not see him (Sir Nicholas), and therefore he for the treaty would begin at once to be taken knew nothing more than gossip which had been up again. They ought. in fact, to be com- reported to him. It was quite clear it was a mencing almost immediately, and the Chamber very big matter, which could not be under-might be assured that their progress would be taken lightly. He understood that M.de Marteau carefully watched at the British Legation at had gone up to Hankow in connection with rail- Poking, where Mr. Beauclerk, who was in tem- ways, and a man who was an authority on har- porary charge, was quite alive to the importance bour works could scarcely be expected to turn of the subject. The German and French In conclusion, he did not think he had omitted the next day to surveying railways. There was Ministers and others interested in the matter reference to any of the subjects which the nothing more complicated than hydraulics, and were watching the negotiations very keenly Chairman of the Chamber had been good enough he did not think Mr. Matthews would undertake indeed, and were trying to get as much informato bring forward. It was a matter of regret to to report one day upon harbour works and the tion with referee to the subject as possible, Į him that he was leaving these subjects in which next upon railways. Regarding the Yangtsze with a view to the protection of the general regulations, he wrote to the Tsungli Yamen tralal interests: al finally, he did not think that the regulations were no longer needed and there would be much use in discussing the were inconvenient, and that they should not be question of cotton ginning at length just now altered without consultation with the foreign on account of the puding Commercial Treaty. Ministers. The yamen replied that it was within their own province to abolish them or not, but he replied that he regarded the Yangtsze regulations as a sort of annex or appendix to the treaty and the yamen must consult with the foreign Ministers. They gave no reply and the matter stood there. As to the payment of drawbacks the American Minister had been

moving in the matter, and sometime ago he got a case satisfactorily settled. He (Sir Nicholas) had no doubt was inconvenient that the merchant should have to deposit so large a sum of money. What his successor wanted in all such cases was definite information in the form of a good memorandum. When a matter was sent up to Peking the Minister tried to get as much knowledge about it as possible, and in the course of three or four days they went to the Tsungli Yamen and found someone had been already coached like themselves and was ready to go on making objections to the questions raised. As far as he recollected Colonel Denby expected the Chinese Government would modify the system of drawbacks sooner or later. It looked promising, but a good many questions

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I

As to the extension of the settlement he was

he would be inclined rather inclined to think that the way in which to deal with it would be to buy as much land as possible out- side the settlement, as they had a perfect right to do by treaty, and he would make up his mind where it was desirable to extend the settlement. When he had got a competer canion on that point he would rather like to see foreigners buy land freely in the district selected. In Tientsin the residents had bought land in this manner and were moving for an extension of the settlement, with a much better chance of getting it than the Shanghai re- sidents, simply because they already held the land. If the residents in Shanghai became the principal proprietors of the land he thought they would already have gone a long way to obtain their point. With the growth of manu- factures and industries thé population would necessarily increase, and he thought if there were no disturbance of ownership or public feeling, which would not be the case if the land had previously been acquired, the Chinese would have no great objection to the extension of the settlement.

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of the West River coffers of the Central Government. They would enrich the

know how much they had to rely on the Customs and the value of a large revenue, for the Customs, a hated foreign institution, for they had seen that had it not been they would have been in a great quandary, to China had not been able to find the indemnity pay the indemnity demanded by Japan. If

no one knew whore they would have been or where it would have ended. When he left Peking the Chinese were coming round to the would not be such a bad thing after all, that in opinion that the opening of the West River

the end it would mean bringing more money into the country and securing the greater happiness and prosperity of the people. They were beginning to understand the elementary principles of political economy better than formerly, and were coming to the opinion that the opening of the West River would bring in an increase of the Customs revenue, and he would not be surprised if they entertained the matter favourably. At any rate he could assure them it was a matter the importance of which to trade and commerce was appreciated by all the Governments interested in the developments of commerce. Hongkong was very keen on the subject. He had lately read a letter from there to the Dean of the Diplomatic Body asking him to bring the matter forward.

he had been so deeply interested for the past three years. All nations and representatives of all countries in the Chamber of Com- merce were concerned in the development of this country and the opening of resources for trade and commerce, and although there was a healthy rivalry between the countries represented here, all nations were working for the same object, were interested in one sole aim to promote the development of China and introduce reforms which would open up the vast and fertile regions in the interior and bring benefits and welfare to the people which were quite unknown at present. nations there was nothing inimical from one to In the rivalry of trade between

the other. There was a fair field and no favour, and each country would rejoice in advantages which the others might obtain, and that made for the increase of trade. and commerce in China. On the eve of his departure he could assure the deputation that the questions which had been referred to would be taken up by his successor and in the mean- time would occupy the attention of Mr. Beauclerk, At the same time they were certainly not passing from his (Sir Nicholas') mind, and if at home he could ever in any way assist in furthering the interests of foreign trade in China by explaining the situation per- haps in ล more concrete

manner, as

any

& man who had lived here for three

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