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On a careful re-examination of the "Provisional Regulations," the Committee are inclined to attribute the mutual misapprehension, which has unfortunately existed, to a want of distinctness in the rules relating to Tai-wan-Foo, and its proposed dependency Takao—Those affecting Tamsui and Keelung are explicit and require no comment.
The difficulty relating to the 1st Rule affecting Tai-wan-Foo and Takao is not removed by the insertion in it of Keelung in place of the former port, as proposed in the amended form of that rule given in your letter. Keelung is fully disposed of by the rules relating to it and Tamsui, by which payment of all duties must be made at Tamsui, without any reference to Foochow and the introduction of it into rules (made for Takao and Tai-wan-Foo only) stipulating for payment of duties at Foochow, is consequently a self-evident mistake.
The real point at issue is this—that the rule does not limit the collection of duties at Foochow solely to vessels authorized to trade at Takao (in addition to the Treaty privilege of doing so at Tai-wan-Foo) under permits conceded in consideration of a counter-agreement to pay such duties for both ports at Foochow;—but states generally that on vessels resorting to Tai-wan-Foo or Takao (the obvious meaning being either port) the Customs duties leviable shall for the present be collected at Foochow through an Agent.—You are perfectly correct in assuming, as the condition precedent to the issue of permits, that the parties receiving them do bind themselves to the terms of the rules under which they are issued, and must among other things pay duties in Foochow; but the Committee cannot therefore admit the justness of your inference, that a refusal on the part of Merchants (other than those in possession of permits) to pay, through an Agent at Foochow, the Customs duties on goods imported at Tai-wan-Foo, or exported from that port direct to Hongkong, is equivalent to a public declaration, that it is their intention to avail themselves of any opportunity that may offer for evading the duties altogether;"—for it must not be overlooked that those persons enjoy Treaty rights at all open ports, which cannot be compromised or limited by any act of this Chamber—and that they may be unwilling or unable to give bonds for so heavy a sum as Tls. 20,000, or make a cash deposit of Tls. 10,000. This last consideration leads the Committee to offer a few observations on the heavy securities required, and the very severe penalties provided for any breach of the regulations.
The present experiment of admitting foreign trade to non-treaty ports, under licence, being avowedly tentative, its success must of course be measured by the more or less general adoption of the proffered facilities by the parties interested in the special trade.
By the 47th Article of the Treaty of Tientsin, British Merchant Vessels entering unlawfully into, or trading at, non-treaty ports, shall with cargo be subject to confiscation by the Chinese Government. By the 48th Article of the same treaty—if any British Merchant Vessel be concerned in smuggling, the goods whatever their value or nature, shall be subject to confiscation by the Chinese Authorities, and the ship may be prohibited from trading further, and sent away as soon as her accounts shall have been adjusted and paid. By the "Provisional Regulations" in cases of false declaration at Foochow, or of neglect to pay the duties at the proper time, the Custom-house may at their option seize the vessel or cause her boat to be forfeited. The offences contemplated by the Treaty are quite as serious as those specified in the "Provisional Regulations," but the penalties exacted by the latter are out of all proportion heavier. In the opinion of the Committee the combination of such heavy securities, and severe penalties will deter the mass of traders from availing themselves of the facility of doing business at the port of Keelung and Takao under the proposed concession, not by any disinclination to keep within the limits of a strictly legal trade, but by the onerous obligations imposed and the Committee would strongly urge a material diminution both in the securities to be required and in the penalties to be inflicted. Should you be disposed to concur in the suggestion, the Committee will be happy to co-operate with you in framing a reasonable scale for both.
In the penultimate paragraph of the Regulations, it is provided that any ship furnished with the pass above referred to, and which may have been cleared from a Northern Chinese port regularly opened to trade, will be obliged to call at the Port of Tamsui to deliver a copy of her manifest and pay her port duties to the Customs there. Although not so expressed, this arrangement no doubt embraces not only Keelung, but also Tai-wan-Foo and Takao, and is not an inconvenient one; but it appears to the Committee that the provisions in the same paragraph, that Export duties, in the case of ship clearing from Tai-wan-Foo or Takao for Hongkong direct, must be paid to the Customs at Foochow, might with advantage be extended to similar duties on cargoes from these ports to other Chinese ports, instead of being made payable, as at present intended, at the Chinese port of destination. The Committee trust that these explanations will remove from your mind the impression, that the Chamber is indisposed to co-operate in any measures that tend to expand and facilitate legitimate Commerce in this Country—and hope that the eventual full success of your present commencement may tend to still more important alleviations of the present system. They regret to learn that native opposition is, so far, thwarted the practical inauguration of the scheme, and look with confidence to your energy for overcoming it. I have the honor &c.
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Monsieur le Baron de Meritens, Commissioner of Customs, Fuochow, to J. J. Mackenzie Esq., Chairman of the Hongkong General Chamber of Commerce,
OFFICE OF MARITIME CUSTOMS, Foochow, 23d July, 1863.
SIR—On my return from Shanghai I found here the letter which you have done me the honor to address to me in the name of the Chamber of Commerce of which you are president, and I must express my appreciation of the perfect courtesy which pervades it.
I am quite disposed on my part to admit the justice of the reflections of the Chamber, and to modify in consequence the Provisional Regulations for Formosa. I only request it to recognize the practical difficulties which I meet in my way.
As far as the north of Formosa is concerned, that is to say the ports of Tamsui and Keelung, all is easy and straightforward, because I have it in my power to establish an Agent at Tamsui in whose administration the port of Keelung will be included.
On the other hand, for the south, that is to say the Ports of Tai-wan-foo and Takao, there is much confusion and difficulty, because as I have not, and am not able to have at present, any Agent in these Ports, I have been obliged to seek guarantees for the payment of the Import and Export duties in an unusual way viz: the payment of duties at Foochow, and the deposit of a sufficient sum of money. I do not conceal from myself that it would be more simple in many respects to have a regular Establishment at Tai-wan-foo, the business of which would also be to collect the customs duties leviable at Takao, but I am unable, at least for the present, to establish an Agency there, and if I may be permitted to offer you my opinion, I would say that I consider it a highly progressive step to solve the problem, by many thought even now impossible, that a respectable trade may be established, and the duties recognized as legal by the Treaties collected, without it being absolutely necessary to establish Foreign Custom-houses at all the ports. The creation of these establishments is in general a source of expense for the Imperial Government of China, and if the future necessities of Commerce should require the opening of new ports it will be to lay the foundation of a considerable chance of success, if there is the example of the south of Formosa opened to the great advantage both of Trade and of the Treasury under regulations mutually agreed upon and freely accepted; such are the opinions which I submit with confidence to your judgment and to that of the Chamber of Commerce of Hongkong.
With regard to that which more especially concerns the part of the regulations of Formosa relating to Tai-wan-foo and Takao, I adopt the sentiments of the Chamber in consequence of the strong argument which you submit to me in support of your opinion, and which is expressed as follows. "For it must not be overlooked that these persons enjoy treaty rights at all open ports which cannot be compromised or limited by any act of this Chamber"—and I do not hesitate for the same reason to modify the regulations as proposed by the Chamber, and to limit to the Port of Takao only, the conditions formerly applicable to the ports of Tai-wan-foo and Takao equally.
As to the bond required from those who desire to be authorized to repair to Takao to trade, I think that you are mistaken in the amount at which it is fixed—It was at first resolved to require twenty thousand (20,000) taels, but on the representations of Merchants in whose judgment I had the greatest confidence, the amount has been lessened by one-half, and if you consult the text of the regulations you will see that the bond is fixed at the sum of ten thousands (10,000) taels, making no distinction between a bond given by an honorable house and the deposit of a sum of money. I trust then that in this respect also you will admit that I have endeavored to meet your wishes.
As to the penalties to be inflicted, I am quite ready to make them less severe, thus agreeing on that point also with you; thus for neglect in the payment of the duties in due time at Foochow, or for faults in the manifest, the penalty is reduced to a fine of five hundred (500) taels; the bond will not be considered as forfeited except in the case of fraud or smuggling, and the ship will only be confiscated in cases foreseen and provided against by Article 47 of the English Treaty.
I think I have thus taken into very serious consideration the despatch which you have addressed to me, and I have conformed as much as is in my power to the wishes which you expressed, for the simple reason that they were founded on justice and couched in extremely moderate and courteous language. It only remains for me in conclusion to express my thanks to you for the part which you have taken with regard to the difficulties against which I have had to contend here, and which occasioned my journey to Shanghai, these difficulties are fortunately now removed, and I have much pleasure in forwarding to you a copy of the modified regulations which will be put in force on the first of August next. It is unnecessary for me to say that I shall esteem myself most fortunate in having the oral support of the Chamber in this work which it has now commenced with me.—I have the honor to be, Sir, your most Obedient Servant.
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