150
22
paying the sums represented into the Provincial Treasury for local administrative purposes. The proposal commends itself as adapted to promote the object in view. Subordinate Officials and their assistants might still be interested in trying to squeeze; but local irregularities might be combated if the Provincial Treasury were appeased, whereas they are almost beyond check when they have the sympathy of the Provincial Magnates.
The Committee are opposed, for these reasons, to any project of merging the Import and Transit Dues in one sum. They think the two should be kept separate, and applied respectively to Imperial and Provincial purposes. They consider the concession of an increased Import Duty should be made conditional, (subject to this re-arrangement) on a distinct undertaking to enforce Art. xxviii of the Treaty of Tientsin throughout the eighteen provinces; Lekin, terminal Duties and additional charges of any kind to be declared illegal; the Transit Duty to cover all charges, and some form of penalty to be exacted for infringement.
The occasion should also be taken to require largely increased facilities of inland communication and trade.
All navigable waterways should be opened to steam: e.g., the West River and its affluents in the South; the Poyang and Tungting Lakes, the water-ways of Hunan and the Han River in the Centre; the Yellow River and its affluents, the Liao and other rivers in the North. Rights of ingress should be required for railways from British India into Yunnan and Szechuen, on the same principle that the French have been given right of access from Tongking into Kwangse.
These concessions may sound, and would doubtless be, far-reaching. But they would, it may be observed, be for the advantage of China herself, as well as of the countries interested in her trade.
Nothing would more conduce to the stability of her Government, the increase of her revenue, and the welfare of her people, than the improvement of inland communications of all kinds, and the relief of inland commerce from taxation upon its movement; whereas it may be feared that, in the event of refusal to admit the Chinese demand, the Government might endeavour to obtain the increased revenue it requires by instructing the provinces to augment the inland collections, to the grave detriment of our interests, and without equivalent advantage or compensation.
23
TELEGRAMS.
Shanghai
China Association (London) to Hongkong Committees.
17th July, 1896.
He may letter of 15th May and your letter of 20th May, suggest permit increase duties in exchange for extension inland intercourse and navigation (and) exemption from illegal transit (and) terminal taxation: transit duties to be paid to Provincial Treasurers. Wire your opinion.
Shanghai to London,
28th July.
Re your telegram of 17th July. Committee advocate Tseng Kwo-fan's note (of) November, 1868, but accept principle (of) increased scale (of) duties to about 7 per cent. aggregate (on) condition one scale covering Lekin taxes (of) every kind (throughout) entire empire. Customs (to) receive payment (and) settle with Provincial Treasuries. Chinese Government to reciprocate regarding duties (on) native produce for local manufacture, consumption, export or otherwise, also freedom navigation (of) waterways.
Hongkong to London.
Hongkong, 28th July.
Re your telegram of 17th July, with reference to Shanghai telegram, we approve suggestions, adding right of travel (and) residence of foreigners throughout (the) Empire.
London to Hongkong, Shanghai.
London, 29th July.
It should be distinctly understood the question is not consolidating but increase. Total probably 7½ per cent. Import, besides 2½ per cent. Transit.
The Hon. Sec. China Association (Shanghai)
Hongkong
I have, &c., (Signed) B. S. GUNDRY,
Hon. Secretary.
Shanghai to London.
Shanghai, 31st July.
Exact percentage immaterial provided not prohibitory. Consolidation essential: one duty (to) cover entire Empire.