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any commercial business in which goods have to be forwarded to great distances becomes an impossibility. He must further know for certain that no higher taxes will be levied than those authorized by law, and that neither he nor his goods will be subjected to exactions or detention.
It appears the more clearly that there can be nothing in these requirements opposed to the interests of the Chinese Government, inasmuch as according to the existing Regulations the Tariff must not only be publicly exposed for the inspection of all persons interested, but must also be printed and for sale at all customs stations, but not at the li-kin offices.
In the case of the former, therefore, it is merely a question of a stricter execution of the existing Regulations, and that this is considered desirable and necessary by the Chinese Government itself is sufficiently shown by the numerous Imperial Edicts and Reports from high officials on this subject which have appeared in the "Peking Gazette."
Such Regulations do not exist for li-kin offices, at least not in the collected Ordinances of the Finance Ministry; perhaps because, according to the explanations of the Chinese Government itself, the li-kin tax is regarded as provisional and to be abolished as soon as possible, and an endeavour had therefore been made as far as possible to preserve its provisional character. There is, however, the less reason for not extending to the li-kin offices the Regulations issued to effect a well-ordered levy of other taxes, as far as concerns the publication of a fixed Tariff, since on the one hand it is precisely in the levying of this tax that the greatest irregularities and exactions take place, as appears from the "Peking Gazette;" and since, on the other hand, according to the communications of the Yamên itself, detailed information respecting the number, situation, and tariff of all the li-kin offices is in the possession of the highest local, if not in that of the central, statistical authorities. It is therefore incomprehensible that this information should not be accessible to the public, as the grievances of the commercial community would thus be removed, and greater order and legality be introduced in the levying of the li-kin tax, a thing which is certainly in the interests of a well-ordered Administration, and, therefore, of the Chinese Government.
In the previously-mentioned conversations, your Highness and their Excellencies the Ministers of the Yamên objected to the above statement of the case, that the foreign merchant or foreign manufacturer (and it is the latter in particular who is concerned in the matter, as it is a question of taxing the goods and not the person of the sender), could have no interest in the question of inland taxation, as he could protect goods sent into the interior against every payment of inland taxation and li-kin, as far as the place of their destination, by taking out a transit pass. This objection is doubtless, in theory, perfectly correct; in practice, however, the conduct of the provincial and local authorities in many provinces and places has rendered illusory the advantage assured to foreign goods by the provisions of the Treaties, i.e., that they may be sent to any part of the interior free of all further dues on payment of a 2½ per cent. ad valorem tax, or a tax not exceeding half the import duty. It has been rendered illusory by foreign goods forwarded in this way being subjected, on arrival at their destination, to a tax which is only levied on goods sent with a transit pass, and which far exceeds the difference between the transit duty and the inland and li-kin tax which these goods would otherwise have had to pay. Under these circumstances, foreign goods can only be sold a short distance inland, and the merchant pays the inland and li-kin taxes rather than make use of the advantage of taking out a transit pass which is offered by the Treaty.
I would the more earnestly recommend to your Highness and their Excellencies' favourable consideration the question of the sending of foreign goods into the interior, as I have already done verbally, inasmuch as any further evasion or non-fulfilment of the provisions of the Treaty on the part of the provincial authorities would certainly produce a very unfavourable impression, whose importance in other relations the Imperial Chinese Government would do well not to underrate.
I avail, &c. (Signed)
VON BRANDT.
(Translation.)
Inclosure 2 in No. 49.
The Tsung-li Yamen to M. von Brandt.
Peking, January 28, 1886.
THE Prince and Ministers of the Yamên have the honour to acknowledge the receipt, on the 23rd instant, of a note from the German Minister, in which he states that