5
21
4
The
the Weihsin barrier, in the Têng district, some miles up the main river. The three at Wochow are known as the upper barrier on the Fu River, controlling goods to and from Kuei-lin, the central barrier at the junction of the two rivers, controlling produce coming from Nanning, and the lower barrier, controlling imports from Kuangtung. principal exports are cereals, beaus, bean oil, beancake, sugar, and hides, and the chief imports foreign goods. The receipts are roughly-
Weihsin barrier
Upper barrier
Central barrier
Lower barrier
Taels. 40,000 per annum.
16,000
90,000
100,000
240,000
A curious feature in the harbour is the whalebacked cargo-boats with broad bulging stems, called "pan-ting," which are exclusively employed in conveying grain from the up-country boats in the river to the Canton junks moored below the lower li-kin barrier, They are owned by the grain brokers, who guarantee the payment of duties and charge nothing for transhipment. As far as I am able to ascertain their peculiar shape prevents the li-kin officials from accurately measuring the quantity of grain thus carried in bulk and by their use a considerable saving in duty is effected.
Notwithstanding Kuangisi's poverty its annual export of rice into Kuangtung is estimated at 12,000,000 piculs.
As soon as the opening of the West River was definitely announced, the "pool" which controls the coasting trade, but which, I understand, is now about to dissolve, placed on the berth four small steamers to run between Wuchow and Canton and Hong Kong. The Chinese Merchants' Steam Navigation Company was bought off by Concessions granted to it clsewhere on the coast, and the Hong Kong, Canton and Macao Steam-boat Company I understand, are three-thirds account,
admitted into the Confederation.
All
expenses, and the management is divided up as follows:-
Jardine, Matheson, and Co. act as general agents at Wuchow, Butterfield and Swire control the management of the steamers plying between Hong Kong and Wuchow, and the It cannot be said that the Steam-boat Company those between Canton and Wuchow,
The Steam-boat arrangement has been a very paying one for the parties concerned. Company, as it has a fleet of steamers running on the Canton River, and hence was supposed to possess a special knowledge of the requirements of the trade, was intrusted with the carrying out of the preliminary measures, but all that it has done has been to spend money without receiving any adequate return for the same, to the not uunatural annoyance of the other partners. Another element of non-success has been the conflict of interests and the inevitable friction arising out of a joint control. Assuming that a trade which had for years centred in Canton would not be diverted thence for a very considerable time, the Steam-boat Company joined the "pool" in hopes that it would obtain more cargo for its Canton boats. Now that it finds that the import trade is carried on directly with Hong Kong, its shareholders are grumbling at a policy which puts part of what they consider ought to be their carnings, into the pockets of others.
It was, of course, not to be expected that one should discover immediately what type of vessel will ultimately prove the best for this river, but on the other hand it was. extremely unwise to pay 25,000 dollars each for the two boats which, as an experiment, are running between Canton and Wuchow. In no single respect are they suitable for the trade. Although only large launches, they draw some 7 to 7 feet when loaded, and it is questionable whether at low water they can run at all. They have no suitable passenger accommodation for Chinese, and carry practically no cargo. When they do happen to have a few packages of cargo they have no room for passengers and vice versa. rates charged are the same as those by steamers of the highest class.
*
Yet the
The Hong Kong-Wuchow line presents a marked contrast-Butterfield and Swire chartered from Chinese, at 1,500 dollars per month each, two locally-built vessels, the "Hoion" aud the Wingtons," which, although far from perfect, are much better adapted for the trade thau the Canton boats. It is true that at the rate of five trips each a-month their total import capacity is only some 1,200 tons of cargo, but as much as possible is got out of them. They arrive with full cargoes each trip, and no pains are spared to dispatch them with the maximum amount of export cargo.
In the event of an actual dissolution of the tripartite pool taking place, I should not be at all surprised to see Butterfield and Swire secure the lion's share of the traffic-both ou the river and elsewhere, as they thoroughly understand shipping business, possess a splendid fleet, and competent employés. So far I have only rumour to go upon, but it is
significant that towards the end of this month the China Merchants' Steam Navigation Company sent a representative to make a study of local conditions.*
In addition to the expenditure on steamers the Steam-boat Company built at a cost. of 5,000 dollars two hulks on which to store cargo and land and ship passengers at. Wuchow.
These structures have likewise proved failures, and the discarding thereof on the ground of inutility and expense is contemplated. It is necessary to employ permanently a staff of twelve coolies to shift their moorings as the river rises and falls, they are by no means water-tight, and were a large amount of cargo placed on them they would sink. The question of go-downs is almost as difficult to solve as that of steamers. Until the land purchased can be filled in and made available for building, some satisfactory mode of storing cargo in proximity to the steamers must be devised, but the constant and excessive rise and fall of the river renders it by no means easy to discover what scheme would best answer the purpose.
Permission has been obtained from Peking to constitute the above hulks bonded warehouses, but, until it has been decided upon whether or not to retain them, no steps have been taken in that direction.
British trade on the West River as elsewhere divides into three classes: the distribu- tion of imports affecting the manufactures, the carrying trade affecting local capital, and the export trade more or less affecting both.
The import trade of the past quarter at Wuchow show very fair results. For a new port its volume is noteworthy, and, as above indicated, it is capable of further extension. Until, however, one is in a position to compare statistics, it is impossible to say how much thereof is cutirely new trade, consequent on the opening of the port, and how much is simply a diversion of imports, hitherto entered at Canton and Pakhoi.
Yarn and piece goods bave crossed the border into Kneichow under transit pass, and, as I have endeavoured to prove in my despatches, the freedom from inland taxation at present enjoyed has given a great impetus to the transit trade generally. So long, there- fore, as there is no modification of existing conditions it is bound to go on developing, and every effort should be made to guard against the introduction of retarding influences until, at least, the trade is fairly established.
It has already been reported that the levy of the intended tso-li tax on kerosene oil and matches, destined for sale throughout this province, has, for the time being, been abolished. Seeing, however, that the Syndicate to whom the farming of the tax was granted are endeavouring to induce the Central Government to cancel the instructions of the provincial authorities, there is yet a danger of the levy being resuscitated in a form that would probably not call for protest on the part of foreign Powers. Should the attempt prove successful, the infliction of similar taxes on other foreign imports becomes simply a matter of time.
The question is one of supreme importance, and may, therefore, justify a reiteration of the views I have on previous occasions put forward.
Attention has been called to the fact that British products do not clothe China's millions, but only to a small extent supplement their wants, and, such being the case, there must inevitably be a limit to the price a native is prepared to pay for either yarn or piece goods. The recent fall in exchange, coupled with an advance in prices on the Bombay market, are seriously affecting the import trade, and apprehensious are entertained that such limit is rapidly being reached. There is thus more reason than ever to protect against procedure which is likely still further to curtail the margin.
Granted that the farm system is one which cannot be objected to, it must yet be regretted that it is possible to tax foreign trade for the benefit, not exclusively of the Chinese Government, but of certain individuals. In 1891-92, when the Kowloon and Lappa stations took over the collection of the li-kin on kerosene oil, previously farmed out, they in six months collected, at the farmer's rates, about 75 per cent, more than he would have paid into the Treasury in twelve months as the price of his monopoly. It might, however, be contended that the farm system is contrary to Treaty, in that it confers what is practically a monopoly in favour of the holder. No matter where or how he collects the tax, it is always open to him to trade on his own account without its being possible to prove the actual fact against bim, and he is thus in a position to under-sell other traders. 1 the farm is granted to the Guild dealing in the particular article taxed, the incidence of the charge is somewhat lightened for the native merchant, in that the surplus, over and above the price of the monopoly, is returned pro rata to the members, but should a
* Extract seat to Foreign Office in No. 152 of Nov.mber 3, 1×97, contains the next few pages of the Report.
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