July 1, 1899.

Hon. J. J. KESWICK proposed that Chamber should criticise the Bill.

the

This was agreed to and the Secretary was instructed to ascertain the views of the opium merchants and then address the Government.

THE FORTHCOMING INTERNATIONAL COM- MERCIAL CONGRESS AT PHILADELPHIA,

Read letter from the Government, dated 16th Juue, transmitting a circular despatch from the Secretary of State for the Colonies covering a letter from the Director of the Commercial Mu- seums at Philadelphia in reference to the Com. mercial Congress to be held in October next nt Philadelphia. ]]

The CHAIRMAN said they had already receiv. ed an urgent invitation to send representative, but this had not been found practicable so far.

After some discussion.

It was decided to address au invitation to Mr. A. M. Townsend, the Agent in New York of the Hongkong and Shanghai Banking Cor poration, to proceed to the Congress at Philadel- phin in October next as representative of the

Chamber.

This terminated the proceedings,

[Correspondence]

THE PIERS ORDINANCE,

Hongkong General Chamber of Commerce,

CHINA OVERLAND TRADE REPORT.

Viceroy's reply to my protest against the re- establishment of the farm of kerosine duties.

I have read with care the correspondence in the former case of the Chap Yik Toug farm, and it appears that Sir Claude MacDonald's position there was, not that farming in principle was inadmissible, but that the farmer, being himself a dealer in the article the revenue on which was farmed, was placed in a position to secure a monopoly of the trade, in contravention of Article XIV. of the French Treaty,

This, then, is the ground on which, if it exists, the present case must be fought, and I shall be much obliged if you will endeavour to find out who are the members of the syndicate chang, the farmer named in the proclamation. probably represented by the name Ch'en Fu-

Also if these members are dealers in kerosine. I am making enquiries here, but I believe they are all Hongkong people.

The Viceroy's despatol is written in a con- ciliatory tone and if I can show him that the farming of likin is in the present instance likely to lead to a monopoly I do not despair of in- ducing him to put an end to it.

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The last clause in his despatch touches ou the vexed question of the area of exemption from likin at the open ports. This will never be definitely settled until our respective Co- Hongkong, 23rd June, 1899.vernments take it up in earnest, though I am SIE-I beg to acknowledge receipt of your glad to say I have so far carried the point letter (No. 905) of the 15th inst. enclosing daft locally that no likiu is levied ou goods taken of a Bill entitled "The Piers Ordinance, 1899, from the steamers to a British shop in the city and requesting an expression of opinion there. of Canton, ou from the Chamber. In reply I am instructed by the Committee to remark —

2.-The time given for consideration of so important A Bill. involving large interests, is brief and quite insufficient.

3.There seems no necessity for such a measure. The rents paid hitherto have been fixed by His Excellency the Governor under an Order in Council, and the Committee respect- fully submit that those rents are sufficient in amount.

4-The scale in the Schedule, though lower than the one proposed last year, is still very much in excess of what should be charged when it is considered that the amount is fully six times that of the Crown Reut on the Marine Lots.

5-If it were conceded that any necessity existed for this Bill, then Clause 20 ought cer- tainly to receive an addition, something to the following effect:-" for a period of fifty years from that date when the scale will be subject to rovision."

6-The Bill is, however, open to several other serious objections, not the least being the breach of faith in certain instances with some of the wharf owners amounting to something in the nature of confiscation.

7-The Committee wish again to point out to the Government that many of these piers were erected mainly for the convenience of the travelling public and that they are not now, and never were intended to be, a source of re- venue. This is notably the case with the wharves of the River Steamboat Companies. Were these piers disponsed with and passengers and cargo landed in boats, as is done from the ocean steamers, great inconvenience would re- sult, and the duties of the Water Police would be largely added to, while the facilities now existing for the rapid discharge and distribu- tion of the food supplies brought in the river steamers would be much curtailed.

8.Under all the circumstances therefore, and having regard to the fact that any hurdeos laid upon wharf owners must necessarily prove ob structive to the course of trade, a tax upon shipping, and an interference with the freedom of the port, the Committee trust that His Excellency the Governor will be able to see his way to continue the system and scale of rents for wharves now existing or with only some slight modification of the same.-I have the honour to be, Sir, your most obedient servart,

R. CHATTERTON WILCOX,

Secretary,

Hon. Colonial Secretary.

THE KWANGTUNG KEROSINE FARM,

British Consulate, Canton, 8th June, 1899. Sir-Referring to my letter of the 2nd instant, I now beg to enclose translation of the

I have had no complaints as yet of any at- tempt on the part of the Likin Farm to levy duties on Transit Pass goods.-I am, sir. your obedient servant,

.1

R. W. MANSFIELD.

Consul.

11.

goods within settlement limits. It cannot be said that the levy of likin outside the settle ments upon goods not covered by Transit Pass is contrary to Treaty.

(Seal of Viceroy.) Translated by G. D. Pitzipios, Vice-Consul.

:

Hongkong General Chamber of Commerce,

Hongkong, 7th June, 1899. Sir.-I beg to acknowledge receipt of your of the 1st inst. in regard to the re-establish- despatch of the 2nd last, replying to my letter

ment of the Farm for the collection of lekin on kerosine in Kwangtung, in which you state that the question is receiving your active attention, letter to H. B. M.'s Minister at Peking. and that you have also forwarded a copy of my

I have to thank you in the name of the Com mittee for the prompt action taken in the matter, and to assure you that the result of. your representations thereon is being awaited with much interest. I have the honour to be, sir, your obedient servant,

R. M. GRAY, Chairman.

R. W. Mansfield, Esq., Her Britannic Majesty's

Consul, Canton.

Hongkong General Chamber of Commerce,

Hongkong, 20th June, 1899, despatch of the 8th inst. enclosing copy of the Sir, I beg to acknowledge receipt of your

Viceroy's reply to your representation on the subject of the revival of the Farm for the col- the Committee will be glad to see your hope lection of likin on kerosine in Kwangtung, and realised of inducing His Excellency to abolish the re-created monopoly:

With regard to the suggestion that the Chamber should endeavour to discover the The Chairman Hongkong General Chamber of identity of the members of the syndicate

Commerce, Hongkong.

June 6th, 1899.

Sir, I have the honour to acknowledge re- ceipt of your despatch of the 2nd instant, pro- testing against the re-establishment of the Kerosine Tax Farm.,

I have the honour to observe that since the collection of the likin on kerosine reverted to the officials after the abolition of the Chi Yi Tang during the 2nd moon of last year. Chen Fu-chang, upon the recommendation of Prefect Waug, the Deputy then in charge of the Sup plomentary Likin Office, was allowed to collect the tax for the time being under official super- intendence, and this has gone ou for several months to the satisfaction of both Chinese and Foreign merchants During the winter the collection was again undertaken by 'the officials. and it was found difficult to exercise a complete surveillance, as many traders unprovided with transit passes sought to avoid the payment of likin. So this spring, the General Likin Office requested that Chen Fa-chang might again be allowed to undertake the collection as an ex- periment. I replied, instructing, the likin office to enjoin on Chen Fu,chang that he must conform with the Treaties and Trade Regula. tions; that kerosine under transit pass, which had not arrived at destination, or which, having arrived at destination, had not yet boen shipped elsewhere, could in no sense be placed on the same footing as goods not covered by transit pass; that if he reverted to the old methods of the Chi Yi Tang the farm would be immediately abolished; that only kerosine not under transit pass or which had left the destination specified in the transit pass was liable to pay likin; that these instructions were issued with a view to check abuses and do away with the evasion of duties. This is what is meant by the clause in the Treaty empowering the Chinese Anthorities to adopt the means they may judge most proper (to prevent the revenue suffering from fraud or smuggling).

Having received your despatch above-quoted, it becomes my duty to again instruct the General Likin Offloe to exercise the most care- ful superintendence to prevent any obstruction to trade or deficiency in the revenue.

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I have given orders to have it ascertained whether there is any objection to the opening of a likin office at Samshui. As regards your contention that the levy of likin within the limits of a Treaty port is entirely contrary to Treaty, I would observe that the Treaty only 'provides that likin shall not be levied on foreign'

composing the Farm, efforts have been made to do so; but, I regret to say, without success. You will, no doubt, have seen the state- ment in the Daily Press to the effect that

a

British Chinese-born subject is connected with the Hainan Lekin Farm, but whether there is any connection between that and the Kwangtung monopoly the Chamber is not at present in a position to determine.-1 have the honour to be, sir, your most obedient servant,

R. M. GRAY, Chairman.

To R. W. Mansfield, Esq., Her Britannic Ma-

jesty's Consul, Canton.

THE SYSTEM OF FINES FOR SMUGGLING AT SAIGON,

S.S Propontis, Hongkong, 6th June, 1899,

To the Chamber of Commerce,

Gentlemen,-As I am anxions for the Cham- ber of Commerce at Hongkong to know how the British and German shipping are imposed upon at Saigon by the French Customs inks- much as imposing fines for opium been secreted* on board the steamers by Chinese employed on board.

I simply quote my own case which occurred upon my last voyage to Saigon, although several steamers have been imposed upon both German and British as well as myself. I left Hongkong for Singapore with passengers, and from thence to Saigon to load cargo of rice to Hongkong.

As soon as I arrived at Saigon the Customs officers came ou hoard and said they had infor. mation of opium been secreted on board; would I give them permission to search, which I did. They found opium secreted in 3 or 4 most intricate places in the ship; nobody could have found it without information as to its where- abouts.

In all they found. 263 taels of opium, of which they charged a fine of $10,520, at the rate of $40 per tael.

I went with our agent to interview the Commissioner of Customs, with a view of asking him to reduce the fine. I was obliged to humble myself in a most derogatory manner. After a long talk we got him to reduce it to $5,000, which fine I think most outrageous. If the French Customs are going to impose fines upon foreign shipping to such an enormous amount, the sooner Saigon is boycotted the better, as it is a disgrace for the Republican Government to act in such a manner to Foreign- shipping, which is the mainstay of the port.

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