be necessary to legislate locally at many differ ent points and in accordance with many differ- ent sets of circumstances, conditions, and requirements. It will only be when that is done that regulations and procedure will beg suitable and also contain in the eyes of botha sides the proper proportion of sapport and control.
4.--As regards the rules and regulations promised in rate 7 of the regulations and clause" 8 of the supplementary rules, there has been such consultation, and much passing and re: passing of draft rules for consideration, but up? the present none have been issued for publica- tion; and as for the appointment of the pro- vincial officers roferred to in cluase 9 of the" rules, such appointments are to follow publics- tion and have not yet been announced. It is hardly likely that this delay has caused either , inconvenience or damage, seeing that it has not taken from or interfered with the enjoy ment of any existing rights, and that foreign capital is neither known nor expected to be invested—at least to any considerable extent— in the petty craft to which the depth and width of inland water channels necessarily eon- fine the steam navigation privilege, and this privilege itself, whether rightly or wrongly thought valuable, will require years of patient nursing before it can possibly answer any ́expectations.---I have, etc.,
ROBERT HART,
1.G. of Customa,
H. O. Bax-Ironside, Esq., HBM. Chargé d'Affaires, Peking.
THE STEAMER COMPANIES TO H.M.S. CHARGE D'AFFAIRES.
Hongkong, 17th June, 1899. :: Sir, We have the honour to acknowledge the receipt of your despatches of the 27th April gand 17th May, which, with enclosures, reached us through the medium of H.B.M. Consul at Canton,
It is with mach disappointment that we infor! from your despatch that you do not propose lą take any steps and that you think it well in the meanwhile to concur in the interpretation placed by Sir Robert fiart on the Rules and Regula- tions for Inland Steam Navigation in Chins, and that the system should be given due time! to afford a fair test of its merits.
If the Rules and Regulations as interpreted by Sir R. Hart could be regarded as in any respect estisfactory, or if they gave fair promise of eventually meeting the requirements of the" West River navigation and trade, we would readily assent to your suggestion that thoy should have a trial to test their merits, but. there can be no hope of eventual satisfaction with a system which seriously impairs the value: of the original concession.
We have carefully read the letter frem Si Robert Hart which you have been good enough to forward and while admitting that his views are important on the working of Rules and Regulations which be himself has drawn up, we take exception to the interpretation given them. The difficulty with which the Inspector. General was confronted was, we readily admit, a very serious one, for he had the choice of coming into conflict with the interests of the Provincial authorities in the matter of revenue on the one hand, and on the other the necessity of so constructing the Rules and Regulations as to render their working in no respect inimi-. cal to the Provincial system of revenue.
Hə adopted the latter course, with the rosult that the value of the Inland Navigation concession has been affected to an extent which manifestly could not have been contempleted by the British Minister at the time of its negotiation. The memorandum which we previously forwarded to you afforded full information of the effects of the Rules and Regulations as now worked, and we do not deem it necessary to supplement them, but we would beg to point out that the trade between Hongkong and the Treaty ports on the Waat River, and between the Treaty ports themselves, is not of sufficient volume to allow of steamers being run profitably, but with liberty to call at way ports, ie. island places, permission for which has been withdrawn since we addrossed Sir Claude MacDowald
on the 28th March, the increased traite work' in time probably be remunerative. The piouser steamers which are now running cannot corer their expenses under existing conditious and others suscially constructed for the trade which are now leaving the builders hands, and again others which have just been contractod for, had better not have been ordered.
In view of the foregoing, we venture to again seek you good offloes in the hope that you will be able to bring about a more practicable con struction of the Rules and Regulations as they affect Navigation on the West River, which as already mentioned, cannot be said to have besu opened to trade in the sense contemplated by Sir Claude MacDonald and understood by the public at large. We have the honour to be, sir, your most obedient servants.
JARDINE, MATHESON & Co., General Managers, Indo Chius BN.
Co., L
BUTTERFIELD & SWIRE. Agouts, China Navigation Company, Ld.
THOS. ARNOLD,
Secretary, H'kong, Canton & Macao S.B. Co., Ld.
To H. O. Bax-Ironside Eeq., H.B.M. Charge d'Affaires, Peking.
: THE CONSUL TO THE STEAMER COMPANIES,
British Consulate, Canton 9th August, 1899. Gentleman,-In reply to your letter of 7th instant, I bag to inform you that I telegraphed to Her Majesty's Chargé d'Affaires as requested and that from bis reply just to hand it appears that your letter of the 17th June miscarried and has never reached him. I am sending him a copy from that in my archives.
As you are laying your grievance before the Chamber of Commerce, it may be of interest to you to read the enclosed copies of two despatches dated June 10 and July 7 respectively, addressed to Her Majesty's Chargé d'Affaires by me on the subject of the reading which the Imperial Maritime Customs have been pleased to put on the Steam Navigation Inland Regulations.--I am, Gentlemen, your obedient servaut,
R. W. MANSFIELD,
Consul.
P. S. I shall be obliged if you will communi- cate the above to the Hongkong, Canton & Macao Steamboat Company and to the China Naviga- tion Company,
Messrs. Jardiue, Matheson & Co., Hongkong.
THE CONSUL TO THE CHARGÉ D'AFFAIRES.
British Consulate, Canton, 7th July, 1899. Sir,-In my despatch No. 27 of tho 10th altimo 1 had the honour to report that the I.M. Customs had prohibited launches plying under the Steam Navigation Inland Regulations from calling at Tresty porte en route.
This prohibition has now been extended to apply to Kongmoon, Kam Chak, Shiu Hing, and Tak Hing, mentioned as "places of call in the West River Regulations.
I have entered a strong protest against this ruling as being in direct contravention of Re- gulation 1, which says that steamers "may pro- ceed to and fro at will under the regulations, but they must not proceed to places out of Chinese territory." (The italics are wine).
The result of this action, which I can only characterize as arbitrary, is that steamers, under West River certificate, cannot call now, having had their Inland Waters licenses withdrawn, anywhere but at open ports and "places of call," and steamers with the Inland Waters license, though they may pass these places, may not enter them. The whole traffle is therefore split up into two services, and two steamers running over the same ground are required to do the work of one. Under such circumstances. I have no hesitation in saying that the Steam Navigation Inland Regulations are absolutely valueless.
I am powerless locally as the Commissioner of Customs states that he is acting under in- structions from Peking.-I am, &c.,
R. W. MANSFIELD.
H.B.M. Chargé d'Affaires, Peking.
H.
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