JAPAN: TREATY REVISION.
CONFIDENTIAL.
177
No. 1.
[August 5.]
SECTION 1.
402
C. O.
14564
(No. 233.) My Lord,
Sir N. O'Conor to the Earl of Kimberley.-(Received August 5.)
RESP (Rect 20 UC 95
Peking, June 20, 1895. I HAVE the honour to transmit herewith to your Lordship copies of a despatch from Her Majesty's Acting Consul-General at Shanghae, together with a letter sent under flying seal from the Shanghae branch of the China Association, dealing with the probable effects that the cession of Formosa will have on British trade.
I have, &c. (Signed)
Sir,
Inclosure 1 in No. 1.
N. R. O'CONOR,
Acting Consul-General Jamieson to Sir N. O'Conor.
Shanghae, May 31, 1895. I HAVE the honour to forward herewith a letter to your address which has been handed to me under flying seal by the honourable Secretary of the China Association on the subject of the cession of the Island of Formosa to Japan, and the possible effects of such cession on British trade. Reference is made to a communication already addressed to you, dated the 16th instant, by Messrs. Butterfield and Swire on the same subject.
The Association, in handing me this letter, express a hope that the views put forward will receive my indorsement and support.
It appears to me, however, that there is little that can be said on the subject, at the present moment at all events. The fears entertained by Messrs. Butterfield and Swire have reference, first, to an interference with their carrying trade between Formosa and Japan; and, secondly, to a diversion of trade caused by changes in the scale of duties in Formosa. As to the first, their apprehensions are, I should imagine, quite unfounded. The present open ports in Formosa will, it may be presumed, remain open ports of Japan, and as such, British ships will, under Article XI of the revised Treaty of 1894, be free to carry goods between them and other Japanese open ports.
The other question opens up a wide ground, and one which may very possibly have prejudicial effects on British trade. If Formosa becomes an integral portion of the Japanese Empire, it may be presumed that the general Tariff Law of Japan will be applied to all exports and imports. In that case, the duties between Formosa and foreign countries would be raised from the present scale, which is on a 5 per cent. basis, to one of 10 per cent., while duties between Formosa and the rest of Japan would be abolished altogether. That this would favour trade between Formosa and Japan to the detriment of British trade goes without saying, Messrs. Butterfield and Swire are owners of large sugar refineries in Hong Kong, and Japan is the principal market for this produce. To some extent they draw their supplies of raw material from Formosa. If sugar refineries should be started in Japan, as I am given to understand will be the case, it is manifest that, drawing their raw supplies duty free from Formosa, and importing it duty free into Japan, they would compete on very advantageous terms with the Hong Kong refineries on the Jap market. In the same way Jap manufactures, such as yarn and piece-goods, could compete very advantageously in Formosa with British or Indian manufactures,
While recognizing these facts, it may be doubted whether it would be expedient or politic to attempt any modification, and the change may not be without some compen- sating advantages to British trade in other directions. This, however, is a subject on which I conceive it does not fall within my province to offer any opinion,
I am, &c. (Signed) G. JAMIESON.
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