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or native craft, are theoretically the same from Treaty Port to Inland place dues in accordance with provincial tariff. In the case of native craft, however, the cargo is put on junks, towed by launches, and the former come neither under West River nor Inland Water Rules. The goods pay only likin and the towing launches are either Inland water or Interport boats, as occasion suits. They stop anywhere en route, and are at liberty to proceed to any point either below or above a Treaty Port.

(It has been stated that British Steamers can do whatever Chinese Steamers can do. This is not the case. The British Steamer is bound by rules, while the Chinese launch remains unfettered. In the case of the latter all distinction between Interport and Inland water craft is ignored. If they are Interport boats, they ought, under West River Rules, to stop at the stages only, or, if towing not to be allowed to stop anywhere. On the other hand, if they are Inland water trading boats, they ought to be granted privileges past a Treaty Port denied to their Foreign competitors.)

The result is that for the foreign vessel the Inland water concession has been practically abrogated. For the Chinese vessel it has been amalgamated with the Interport trade.

To sum up: we have

1. The foreign Steamer, trading between Ports and Stages en route, and, if towing, debarred from calling at the Stages.

3. The Chinese Steamer, towing a native junk trading between Treaty Ports and calling at any and all places en route, thus combining Inland and Interport trade.

Cargo in the junk, towed by the Chinese Launch, pays likin only, and that to the ordinary likin administration. Under the Inland water rules, an official was to have been appointed to collect the revenue in accordance with a published tariff. Up to date no tariff has been published, nor official appointed. Sir Robert Hart, in his Despatch of May 12, 1899 (China No. 1 of 1900 p. 198) states that whatever licensed Chinese steamers can do inland, foreign flag licensed steamers can do also, and whatever Interport foreign Steamers cannot do inland, Interport Chinese Steamers likewise are forbidden to do.

I think that I have shown such not to be the case. The Inspector-General goes on to say that "it will be necessary to legislate locally, and in accordance with circumstances, conditions and requirements". It is precisely because the fear of the foreign trader "that the restrictions, which provincial officials call for, will thwart development" has been realised, that local legislation has become so imperative.

I may add that from my own experience of the West River

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