October 14, 1896]

The COLONIAL SURGEON In 1874 I know at once a week was a quite common thing. The resolution was carried, sui Brita THE COST OF CHLORIDE OF LIME" IN ** gif redt 2ıza LATEINERS WAT RESISTA The Medical Officer, of Health wrote stating that 6,000 lbs. of ohlorinated lime had been supplied to the latimes during the month of September and he was of opinion that there

as no necessity, for its continuance, i

The Secretary, in a minute, said that $2,000 worth of lime; had been used during the last two months: If it was decided to continue the expenditure of public money. another $1,500 would be required, for the current year and something like $7,000 in 1897. deny

It was resolved to discontinue the use of the lime at present,

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CHINA OVERLAND TRADE REPORT:-

later: form of filatures) such a share of their produce as raises the price above that of similar produce in foreign countries, it does not injure the industry of foreign countries, but simply impoverishes the resources of China.

The needs and system of government in' China are based upon no European model and may not lightly be disregarded or set aside; but a reasonable revision of the Treaty Tariff requires little more than that sufficient security be furnished by the Chinese Government for effectual fulfilment of obligations which it undertakes to perform, and which have been in the past a mere dead letter.

To this end the Chamber contends that whilst leaving China to arrange what percent age of duties should be appropriated respectively to the Imperial anthorities and to the Pro- vincial authorities for internal revenues, a cer- tain proportion should be retained as a reserve, from which illegal exaction upon merchandise in transit could be met.and satisfied, and that in return for the increase in import duties all imports should not only be declared free, but actually be free from internal taxation while in The Board then adjourned until next Thurs- transit or at the terminal point. In connection -day week,

=-4amri). MORTALITY RETURNS. For the week ended 25th September the death rate was 20 as against 21.7 for the cor- responding period of last year. For the week ended 3rd October the rate was 21.8 as against

31.2.

Sún)_1.{LADJOURNMENT.

THE

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SHANGHAI CHAMBER COMMERCE ON TARIFF

REVISION. ·

with any important increase of import duty it will be obvious to your Excellency that the question of Bonded Warehouses may of neces- OFsity again become a subject for practical con- sideration, and the Committee submit that the privileges already afforded to the leading native Steamship Company should be extended to for eign wharfingers.

The following letter has been addressed by the Shanghai General Chamber of Commerce to the Doyen of the Diplomatic Body at Peking --...

- Shanghai General Chamber of Commerce,

hankoop Shanghai, 17th Sept., 1896. Your Excellency. This Chamber has had under consideration proposed amendments of the Tariff and Duties and the consequent re- vision, or adaptation, of the same under condi- tions of the Foreign Treaties with China; and, recognising the necessities which the Chinese Government are under to raise additional re- venne by increasing taxation upon trade, the Committee feel justified in offering some sug. gestions, which are made with due regard to the welfare and prosperity of the country in which the, interests of foreign merchants are largely involved,

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Did the questions; at issue rest between one European nation and another, it would be possible for a Chamber of Commerce to state briefly its views and to avoid reference to first principles already well known, but as your Excellency will possible see fit to lay before the Yamen the views now expressed, it may not be without useful purpose to touch on fundamental rules, which ought to govern taxation both of exports and imports in China. As regards exports it will be admitted that every increase in taxation thereon, every tax upon national industries, plays into the hauds of other countries, whilst on the other hand it may be contended that, if China must dis- charge the foreign obligatious by the export of commodities producers of these commo- dities should contribute their share towards the needs of their government, and this is just. The injustice, arises when the tax exceeds the need, and ruins a trade by depriving the producer of the narrow margin of profit upon which he can survive, for it must be borne in mind that the value realised for China's exports is not determined by China herself; she is but one factor, the price. China receives is deter minded by the competing production of other countries, and the position of supply and de- mand in the consuming markets.

Thus, before India and Ceylon grew tea, China could exact her own price; since tea has become an articles of export from other countries, China's, share in the trade has de olined, and, so far as Great Britain is concerned, threatened « with extinction because the imese Government, by the continued im ì high tax on the production, rob er of his narrow margin of profit and

the trade as–ZEDAW

same, with silk, for which China often command her prios, but largely dependent upon the or countries—if (Ching, by lg from her +silk producers, the early stage of cocoons or the

While assenting to an increase in import duties, this Chamber considers that export duties, if not abandoned, should at least be reduced and limited to exports to foreign countries, and not imposed upon goods trans- ferred from one port or place in China to another. In addition to export duty this Chamber concedes the principle of transit duty upon produce to meet the requirements of the provincial authorities; the main principle it contends for is the right to buy produce any

where on the coast or in the interior and trans- port it, upon payment of transit duty, from one port or place in China to another, there to con- sume it, without further taxation, or to export it under conditions which of necessity vary in accordance with the nature of the commodity.

This Chamber urges upon the Chinese the construction of manufactories and the foster- ing of industries of every kind, and, until in a position to satisfy the country's requirements, it suggests, but does not insist, that the in- troduction of all machinery be duty free, in order that China may take its place as a manu- facturing centre amongst the countries of the world as speedily as possible. And this Chamber claims for manufactories at present established or in course of construction the right to buy produce and transport it from place to place in China upon payment of the transit duty only.

If a basis for the revision of taxation be agreed upon, details can afterwards be arranged as to whether and in what directions specific or ad valorem duties be respectively imposed, but for the protection of trade and enforcement of the contract, this Chamber attaches the utmost importance to its suggestion that a guarantee or reserve fund be created which would ensure the fulfilment of transit duty obligations by the Chinese Government's provincial subordinates.

causing great loss of foreign Thés publication of the Cham your Excellency has drawn forth apparently authoritative person va in the newspapers that the expression plemont" lekin would better have been trang lated in substitution of lekin but be this hy it may, the intention to continue lekin raw material (cocoons) is indisputable, and the freedom of the improved product after pay ment of 10 per cent. duty is a valueless pri- vilege, as it is solely an export and does not gon back in the interior of China for consumption ze

The subject of Cotton Mills is one which1? the Chamber of necessity approuch with less freedom; it is a departure de novo land though under existing Treaties immediate adde vantages might be claimed both for the industry and the Imperial revenue, it is recognised that provided the necessary guarantees can ben obtained for strict adherence to a more lasting 1 agreement, the general discussion of taxation affords an opportune moment for the settlement11 of the future."

The mill owners therefore maintain that as an incentive to a new industry and one of the principal ones likely to be permanently beneficial to the Government of China, as well as to individual enterprise, it is essential 3 22

1. That raw cotton for treatment in the mills, whether purchased in the interior and brought to this or any other Treaty port for subsequent delivery, shall be free absolutely from lekin or lotishui such as is referred to, în the memorial of the Tsung li Yam

amen’and sub- ject only to transit duty on cotton imported from a foreign port.

De buit odd

2. That presuming as an illustrative rate the import duty on foreign yarns is raised to an ad valorem rate of ten per cent., which entitles the same to the advantages of transit passes and freedom from lekin, the excise or anty imposed on the produce of local mills shall inclusive of the transit pass duty on the "raw cotton, never exceed the said ten per cent." (or whatever percentage may be fixed) and that the local made yarns shall if sent for or on sale up country or to any other port in China have the same freedom from further transit dues and im munity from lekin which the foreign imported article enjoys.

3. That the excise or duty on local-made' yarn shall free the same from all export duty. or impost of any kind whether to a foreign ' country or any port in China, and that if the latter be the destination a certificate of pay- ment of excise shall give the said yarn the same freedom from transit dues, lekin, and other exactions, as it would have enjoyed had it been ̈ sent direct from Shanghai into the interior.

4.-That raw cotton whether imported from a foreign port or another port in China för treatment at the mills should be free from im- port duty, or that if duty be demanded thereonTM the same shall be deducted on payment of the excise on the manufactured article.

5. That if native cotton mills in any part of the Empire have or are granted any terms or privileges superior to those fixed for foreign owned mills the latter shall have the benefit of the same.

Without these conditions, or something similar in effect, enterprise will be hampered! and China's opportunity of entering the ranks a of manufacturing countries lost.

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Whilst thus drawing the attention of your As regards ten the position of China's trade Excellency to the principles which this Cham-is so notorious that it seems almostinnnecessary! ber consider should govern any amendment or to dilate. Attaclied is a copy of a letter sto a revision of Commercial Treaties, it necessary this Chamber dealing with the questione in to request you also to consider the memorial detail, but in asking your Excellency statten v regarding taxation of manufactories recently tion thereto I may be permitted to giveraz addressed by the Tsung-li Yamen to the Throne. single illustration. The export duty is specific, On its application to the silk filature industry Í viz., Tls. 25 Hk...or Tls. 2.8 Shanghai per! have already had the honour of addressing your pol., fixed many years ago when it was supposed Excellency, but for sake of record a copy of to be the equivalent of 5 per cent. on the averagel that communication, is hereto attached; the value of teas supplied. At the presentistime argument against the proposal of the Memorial- owing to the competitive enterprise of oth ists to charge 10 per cent. on the improved producing countries, a low quality of silk product is simply that the trade will be tea might be bought for Tls 9.80 ppl. practically ruined thereby the raw article includes the export duty of Tls, 2.80.—tl (the cocoon) is already overbundened, by lekin price of the tea therefore at the port of more than doubtful legality, and, if the is Tls. 7a pispl. on which is levied additional impost is exacted, it means that say. 40 per center(instead of 5 pe either the rearers of the silk worms will have to duty--I underlit le price accept proportionately lower prices or that the ment, for Tls & includes exactio filature factories will close their doors, throwing transit dues of varicus and subs thousands of natives out of employment and which simply shows that were the

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