(8)
33. These propositions are almost identical with those of 31st May, 1879, and are as follow:---
(e.) That Chinese Customs Stations, where duties are now levied, be abolished.
(b.) That Junks trading with Hongkong pay duty at ports of entry or clearance according to usual tariff, except Salt, Opium, and Munitions of War.
(c.) That the Cruisers cease to overhaul junks from or to Hongkong,
(d.) That, as regards Salt, Opium, or Munitions of War, they are not to be exported in future to the Coast of China in native junks except under a permit from the Chinese Authorities.
31. The foregoing proposals were sent to the Foreign Office and elicited criticisms to the following effect :-
(1) That the basis presented many difficulties, and it was doubtful if the Chinese Government would receive it.
(2) If the Government of Hongkong undertook to prevent Salt, Opium, and Munitions of War from being taken from the Colony without a permit the prestige of the Government would be lowered in the eyes of the native community, and it was doubtful if such an undertaking could be effectively carried out as long as there is free sale in the Colony, without the maintenance of an expensive British Revenue Service, and the establishment of a British instead of a Chinese Blockade,
(3) If the Chinese gave way to the other conditions they would jeopardise the whole of their native revenue. They could not be expected to accede to these propositions, abandoning the right of search and doing away with the three Stations at the entrance of the Harbour, as they would have no means of watching hundreds of miles of Coast.
The Governor is then instructed not to treat with the Viceroy except through the Consul, and, for the present, not at all, as Sir THOMAS WADE is treating at Peking.
Grievances complained of in the Blockade of Hongkong-Basis of Settlement suggested.
35. The Mercantile community complains of the following grievances inter alia; and the Government and Secretary of State consider them well founded :
(1.) That the Cruisers of the Chinese Authorities and the Officers of the three Native Stations at the Throat Gates of the Colony exact undue and illegal rates from the junk trade of the Colony.
(2.) That goods of Foreign Origin sent to the West Coast of China and to non-treaty places are made to pay much higher rates of duty when shipped in Hongkong Junks than when shipped from Macao; so that it pays the Hongkong Trader to send his goods first by steamer to Macao and thence in junks, instead of sending them direct from Hongkong.
(9)
(3.) That Chinese goods sent to Hongkong are made to pay dues which are arbitrary and uncertain in amount, and always in excess of what is believed to be right, for no tariff is published or rule adhered to, and traders who have left one Province and paid all dues, are made to pay for entrance to Hongkong as if it were a port of China. This is shown in the case of Formosan traders.
(4.) The discussions between the Macao Chinese merchants and the Rice Commissioner Kwo, and the Hongkong Chinese merchants in 1876 shew that no fixity of rate is known, and that Hongkong trade is heavily handicapped. (See command paper 1628 of 1876, pages 17-18, and C.S.O. 1769 of 1876).
(5.) Goods sent to the Philippines, &c., are not so heavily taxed as the same goods sent to Hongkong.
(6.) That cruisers flying the Chinese Customs Flag collect what is called the Harbour and Coast defence tax upon Opium, and when complaints are made to the Viceroy about their seizing junks in the harbour, he says they are the property of a monopolist of the tax and not under his control, e.g. Le-tsap and four others. (See Mr. Consul HEWLETT's letters of 22nd June and 27th August, 1880, and list of seizures in one year in our waters. Appendix C).
(7.) Open levy in the Colony of all kinds of duty upon Opium. (See Appendix D).
(8.) Salt tax is levied on the fishermen of the Colony by a depôt in the Colony. Fishermen are required to take out warrants from the Salt farmers for the Salt which they take from Hongkong for salting fish at sea. A couple of Cruisers levy the tax in the waters of the Colony. This has been known since 1868, but was stopped by Sir R. G. MACDONNELL. This is a tax on the consumer of fish in the Colony. (See Registrar General's letters, Appendix E)
(9.) The forfeiture of a junk and cargo if smuggled goods are found among passenger's luggage is against natural justice, if so smuggled without the knowledge or by connivance of the Master.
36. In the various proposals made by Sir THOMAS WADE, the essential one was "the getting rid of the three Obnoxious Stations." He also again and again pointed out the importance of securing that "the jurisdiction of the Colony must not be invaded by Cruisers pursuing and capturing junks within the waters of the Colony." As has been already stated, Sir THOMAS WADE gave as the reason for getting rid of the Native Stations, that the dues demanded of the junks by the Chinese collectors would be in excess of what would be just.
His scheme as finally matured would seem to stand thus :
(1.) That the Chinese Government should shut up the three Stations at the entrance of the Harbour, and in their place establish a Branch of the Foreign Inspectorate near the Colony.
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