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the interests of British manufacturers and traders
at Hongkong
including the sugar-refining interest
to its coasting trade shall be equally accorded to
goods imported from Formosa under the conditions
referred to.
The Board note that the Japanese Government,
from their action in the particular case which gave
occasion for Sir F. Sato's despatch,
Seem disposed to allow such privileges to goods coming from
Formosa and transhipped at Hongkong when the goods
are accompanied by through Bills of Lading, thus
following the practice of some of the European Powers
(e.g. France) in similar circumstances.
The Board hesitate, however, as at present advised,
to suggest that the Japanese Government
should be pressed to adopt this course as a general
principle of its Customs policy.
They believe
it to be a fact that a considerable proportion of
the trade between Formosa and Japan has hitherto
been carried on via Hongkong and in British vessels,
and this portion of the trade would naturally be
benefited by a permanent concession of the privilege
of the coasting trade thereto.
On the other hand,
the interests of that Colony would be opposed to such a concession,
and traders there would probably view with
dis favour the transhipment of sugar from Formosa to
Japan, where it would receive free admission, while
sugar from Hongkong itself would be charged with
import duty on clearance in Japanese ports.
In view of these conflicting interests, the
Board would suggest, for Lord Salisbury's consideration,
that, before instructing Sir F. Sato to make
any representation to the Government of Japan on the
subject under discussion, it might be desirable to
procure a report or reports from those members of
Her Majesty's Diplomatic and Consular Staffs who
would be best able to furnish the information respecting
the trade of Formosa itself with special
reference to the routes which it takes and the proportion
by each route. The Report by Mr. Porking,
which has recently been issued, though an able and
interesting report generally,
does not deal with the trade