526

HINA TRADE.

ONFIDENTIAL.

No. 1.

[April 30.]

3.0

SECTION 1. 15522

Sir C. MacDonald to the Marquess of Salisbury.--(Received April 30.)

Res 19 MAY 00

(No. 57.) My Lord,

Peking, March 16, 1900. WITH reference to my despatch No. 12 of the 17th January, I have the honour to transmit herewith copy of an extract from the Intelligence Report of Her Majesty's Consul at Wuchow relating to the Rules for navigation on the West River.

I have, &c.

(Signed) CLAUDE M. MACDONALD.

Inclosure in No. 1.

Extract from Wuchow Intelligence Report for period ending January 31, 1900.

AT the end of November the Commissioners of Customs for Wuchow, Samshui, and Canton met in Canton to consider the revision of the West River Rules, the Shipping Companies interested being also represented. It being regarded as impossible to place the West River between Hong Kong, Canton, and Wuchow on the footing of inland waters on account of the difficulty of control, the alterations recommended to Peking by the three Commissioners are of such a limited scope as to be of little practical value. For this reason the British steam-ship "Lungkiang" is shortly to be taken off the Canton... Wuchow line altogether, and the three Shipping Companies are seriously contemplating disposing of their steamers and lighters, specially built for the Hong Kong-Wuchow trade. One and all are, I understand, running at a loss.

The wreck of one of the lorchas plying between this and Hong Kong has thrown light on a most unsatisfactory state of things, justifying in some measure the severe restrictions imposed by the Imperial Martime Customs, whereby, in turn, bona fide British merchants are deterred from engaging in the trade. For nearly a year this lorcha has been running to this port as a British-owned vessel. Before reporting her to the Customs as such, the precaution was taken of summoning the ostensible owner to the Consulate, where he made an affidavit that the lorcha in question was his own personal property. From the statements of the master made after the wreck, it appears that the vessel was merely under a six-monthly charter, the real owner being a Chinese subject. The fact is now admitted by the agents here, and the same state of things doubtless exists in the case of the other vessels of this type belonging to the same firm, which have long been regarded by the Customs with an unfavourable eye, and suspected of regularly calling at unauthorized places en route.

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