4
had time to develop their resources and to organize a system of land transport the concessions that have been granted to the French need be regarded for the moment as What the French have had principally in view, necessarily handicapping our commerce. since it was determined to carry on and consolidate M. Ferry's work of establishing an Indo-Chinese possession for France, is the reduction of the credits which the French Chambers are annually asked to vote for the Protectorate.
I remember that when M. de Freycinet was at the head of the French Government after M. Ferry's defeat on the Indo-Chinese policy, be used as an argument in favour of a continuance of that policy on a limited scale, his conviction that very shortly the Protectorate of Tonquin and Annam would be found to be self-supporting. The Tonquin Credits of, I think, 30,000,000 fr., were at the time pending before the Chambers, and M. de Freycinet's argument had a great deal to say to their being voted. Still, these Credits have, unless I am mistaken, steadily remained at the same figure, and looking to the opposition they encounter on cach occasion of the Estimates being submitted to the Chambers, it is not surprising that efforts should be made to increase by every available means the local sources of revenue in Tonquin and Annam.
This will account for M. Constans' anxiety to obtain the withdrawal of the pro- hibition on the importation of Chinese opium into Tonquin by way of the frontier.
In addition to the export duty to be collected by Chiua, such opium will, of course, be taxed on its arrival in Tonquin.
Had M. Constans succeeded in persuading the Chinese Government to allow salt to pass from Tonquin into China, the French would have charged an export duty; and he has succeeded in getting their consent to Chinese products, transiting Tonquin to an Aunamite port, for export to a country other than China, being subjected to the Franco- Annamite Tariff rates.
As regards the further reduction in the frontier import and export duties by the frd Article of the Additional Convention, it is in reality so slight that possibly
will
be held by Iler Majesty's Government as not more calenlated for the moment to injure British trade entering China by the Treaty ports under the Maritime Tariff, than the previous reduction of one-fifth and one-third obtained under the Convention of the 25th April, 1886.
This point was thoroughly investigated by Her Majesty's Government, in con- sultation with the Board of Trade and the Chambers of Commerce in England on the occasion of the signature of the Treaty of Peace of the 9th June, 1885, and the Com- mercial Convention of the 25th April of the following year, and taking the despatches marked in the margin as a record of the opinion formed at the time, it would seem to have been admitted that, looking to the defective mcaus of internal communication in the French Protectorates, the difference of duty need not be looked upon as conferring any material preference or advantage on France over the other nations interested in the Chinese Treaty ports, provided that corresponding advantages are secured to Great Britain with respect to the frontier trade of Burmah and the navigation of the southern rivers of China.
While the negotiations between the Chinese Government and M. Constans were going on, I took an opportunity of letting the Ministers of the Tsung-li Yamên under- stand that, although it was neither my daty nor my intention to throw any obstacles in the way of their coming to a satisfactory arrangement with my French colleague, which, on the contrary, 1 earnestly desired, I thought it only right to cantion them against making any concessions to France which would give her an unfair advantage over other friendly Powers, and so cause embarrassment to China. In such an eventuality, I should unhesitatingly take steps for the protection of British interests and their Treaty privileges.
The answer to my message was to the effect that the most-favoured-nation clause in existing Treaties with China referred solely to intercourse between foreign nations and China through the Treaty ports, and could not, therefore, be made available for securing privileges granted to any Power in connection with overland intercourse.
I did not push the matter further, because I knew China to be in great straits on account of the occupation of the French of the Paklung territory, and also because 1 had no reason whatever to doubt that, when the moment arrived for a definite arrangement
of the trade between Burmah and Yanan, China would be perfectly prepared to give us a. not less favourable Tariff than she had conceded to France.
A great deal has been said about the advantages to be derived from opening a port on the West Cantou River. I am inclined to think that those who are in favour of snch
a plan may not anpossibly have exaggerated the commercial benefits to be derived front it, which would, moreover, be equally shared by the French and other nations having Treaties with China.
Kuungsi Province Kuangtung Province
TONG KING
Tombeau Marble Gravej
Ciung Pinch
Per Shih
Chung Shan
Ting Ising ChuShun/
ping Kab
"Tape Paklung
Hoi Viny
TONG KING
GULF
A--From X to Pei Shih, the frontier line is under discussion.
Chin Chow
JJuny Men
SKETCH
OF THE
PAKLUNG DISTRICT.
EXPLANATION.
Lien Chow
Pukhoi
B.From Pei Shih (river frontier to sea and then short sea frontier, Blue and Red line) to Chu Shan (Chu Shan is Chinese Territory) the blue and red line is accepted by both sides as the Frontier Line. e.-From Chu Shan the line dotted red to Tombeau and from Tombeau to A is the line traced by the French as being their frontier line, but they propose to run it to B only, provided the Chinese agreed to
their line of frontier from Chu Shan to Tombeau (Chinese did not agree). D.-Chinese run their line of frontier from Cha Shan to Cape Paklung (blue line); and of course embracing Cape Paklung.
E-Though French maintain their right to frontier to point A, they limit disputed (contested) territory to the horse shoe shaped tract of country from Chu Shan to Cape Paklung, passing by Tombeau and point B.
₤24 10.87 118][ 5.0. 6787
Kamoon & Hups Jith. St Martine Lane, W.C.
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