(2)
though no claim has been made for loss of trade consequent upon the illegal acts of the Hoppo, yet if one was preferred there would be strong grounds for its enforcement.
The Committee think they cannot do better than give the following extracts which fully detail in their own words the particulars of the grievances preferred by the Shipping interests of this Colony:-
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"We beg leave to call the attention of your Chamber to the present peculiar position of the carrying trade between Canton and this port, more particularly as regards Tea intended for transhipment to Ocean Steamers. "Until the present Season this tea carrying was dono almost eutirely "by foreign vessels, the greater part being brought down by river steamers "and transhipped here, or upon occasion Ocean steamers loaded at Whampoa
"for London direct.
"During the past few months, howevor, the entire export of tea from "Canton has been made in native junks to Hongkong, or in other words, "the carrying trade in this staple has completely gone out of the hands of "foreign shipowners.
"The reason for this change is not far to seek; it consists in the induce- "ment offered to native teamon by the Canton Hoppe to ship the tea by junk "and pass it through the Native Custom House, by charging a much lower "duty than that imposed by the Imperial Chinese Maritime Customs, and "which would have to be paid if the tea were shipped by foreign vessels.
"Teas perfectly free from dust or small leaf, of which there are but very "few, do not benefit materially by being passed through the Native Customs, "but other teas, of which the entire export to foreign countries consists, get "through at a considerable reduction of duty. After paying junk freight
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*
(about 85 cents per ton), teamen can put their teas fo.b. at Hongkong cheaper than they can deliver on board the river steamers at Canton by "about seven mace per picul [or nearly (d) one half-penny per in.), and, as teamen themselves inform us, they can sometimes, before settling a big "line of tea, make arrangements for it to pass through the Native Custom "House extra cheap so as to induce business; in fact any regular tariff rate "appears to be entirely ignored, and the question of export duty resolves "itself into one of a bargain with the authorities. The consequence of this "is, that foreign merchants are now forced to buy their teas for delivery in "Hongkong harbour instead of in Canton as formerly, and a valuable carrying trade has been diverted from foreign steamers to native junks.
**
(3)
"The principal sufferers by this change are, of course, the river steamship owners, by direct loss of freight, but Ocean steamers are also adversely affected in the following manner.
"Cargo is sent down in junks at all times, (not timed to suit the con- "venience of the receiving vessel, as it would be if sent by river steamer), "and should it arrive some days before the Ocean steamer is ready to load, "it has to be stored and insured against fire at the shipowner's expense. "The junks frequently make long passages from Canton and the steamers are "often detained until their arrival, or have to incur the expense of sending "steam-launches to meet the junks and tow them down. In the case of mail "steamers, having a fixed time for leaving, the junks have ou several "occasions arrived after their departure and the freight on the cargo for "which space had been reserved, has consequently been lost.
"We have specially instanced tea, but the foregoing remarks apply more "or less to other descriptions of cargo, notably to silk waste and rattan
" core.
"We regard the action of the Chinese Government in allowing the Canton Hoppo to charge on goods shipped by native craft, lower duties than are provided for by the treaty tariff and levied by the Imperial Chinese "Maritime Customs on cargo shipped by foreign vessels, as opposed to the
C
'spirit of all its treaties with foreign powers, also as tending to create a "monopoly in favour of the Junks and as placing an obstacle in the way of "free competition and therefore in direct contravention of Article XIV, of "the French Treaty of 1858. It is also, in our opinion, a distinct violation "of the United States Treaty of 1880, Article III. of which provides that "the duties shall be levied alike for foreigners and Chinese.
"We bring these facts to the notice of your Chamber, and would ask its "aid in representing the matter to H.B.M. Government with the view of "bringing about the removal of this barrier to free competition.
"Overleaf we quote the two Articles in the Treaties to which we have "referred."-I have, &c.,
E. MACKINTOSH, Chairman.
To Sir JOHN WALSHAM, BART,,
Her Britannic Majesty's Envoy Extraordinary and Minister Plenipotentiary in China, Peking.
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