Light houses and Beaco119.

Payment of Duties.

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country vessels and for craft under flags of all nations trading with China, it may not be deemed unreasonable to propose that a portion of the Tonnage Dues paid-by Foreign vessels, and those bearing the Flags of powers having no Naval force in 241 China, be returned to Her Majesty's Government half yearly by the Maritime Customs in recognition of services rendered. This payment, however, to give no privilege of employment of Her Majesty's cruisers other than that which, on requisition having been made, may be authorized by Her Majesty's Senior Naval Officer at Hongkong, or by the Consuls at Coast ports not further North than Ningpo.

(35.)

ARTICLE XXXII.-The consultations of Consuls and Superintendents of Customs have, it would appear, resulted in the decision that little occasion exists for the erection of marks for the guidance of shipping resorting to open ports. Had the deliberations that led to this conclusion been given to the public, they would have afforded interesting matter for discussion and would undoubtedly have elicited opinions adverse to the inaction which leaves dangers unmarked and the entrance to several rivers without those facilities for navigation which were evidently intended to be provided. As the Chinese Authorities, left to themselves, do little, an improve- meut may be devised by their placing a certain sum, not less than one-fifth of the Tonnage Dues annually collected at each Treaty port, in the hands of a Board composed of two or more Consuls representing nations that have paid the largest amount of Dues on vessels during the preceding year, who, with the Superintend- ent of Customs, shall meet periodically for the purpose of carrying out the intention of this article.

(36.)

ARTICLE XXXIII-treats of the standard of Silver required for Duty payment. The present system of payment of Duties is antiquated and highly inconvenient to those engaged in trade, and the Chamber would suggest that the Tariff rates should be payable in whatever coin or bullion may be recognised as the mercantile currency for transactions between Foreigners and Chinese at the various ports, without any addition for premium. The regulation requiring payment in Haiquan Sycee, a currency of which very little actually exists, or in coin or bullion with a premium added supposed to make the payment equal to this all but imagi- nary currency, is one which should not be permitted to continue; it also fosters abuses committed by the so called Government Banks attached to each Custom House, these institutions having it in their power to advance or depress the value of Sycee as it suits their interest or convenience. A case illustrating the evil of the system has lately occurred at the port of Foochow where, for some years past, Mexican and Foochow Dollars were received in payment of Duties with a premium of Six per cent (6%); this percentage has of late been raised to Ten, thus adding Four per cent to the Duties which were levied a short time ago. Should this suggestion of the Chamber meet with Your Grace's approval and the Chinese Government be induced to accept at the Southern Ports (Canton, Swatow, Amoy, and Foochow) Dollars in payment of Duties on the same terms as they are received in general commercial transactions, not only would it be a great convenience to trade, but it might be the means of introducing largely into China the Dollars coined at the Hongkong Royal Mint, and thus greatly benefit this Colony. Some years ago an arbitrary distinction was made by the Chinese between Carolus and Mexican Dollars, the latter being refused except at a discount of Twelve (12) to Fifteen per cent (15 %), a difference done away with by an edict promulgated at the instance of the Acting Consul at the time, Mr. now Sir HARRY PARKES; this case may be said not to apply to the matter here referred to, but it serves to show that reforms of magnitude were effected at a time when liberal ideas were only gaining slight acceptance and what may be done in the interests of commerce by the representations of a Consul alive to the desirability of freeing it from unnecessary exactions.

(37)

ARTICLE XLV. --The concluding paragraph of the article permits that Foreign Grain brought into any port in China in a British ship, if no part thereof has been landed, may be re-exported without hindrance. The permit does not extend to Grain that has been landed and stored. It has frequently occurred that stocks

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