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adhered to.
It should further be clearly laid down that all vessels, loading or unloading in such section of the Hongkong Harbour, shall be at liberty to trade anywhere either Treaty Port or other island place.
As regards native produce, it is divided into two classes:-
(a). Cargo for export abroad, or to points outside of the Liangkuang.
(b). Cargo moving along the West River from one port or stage to another.
The former, if for abroad, to be brought down under outward transit pass, and to pay at Hongkong or Canton a duty of 7-1/2%. If for shipment to Chinese Ports, outside of the Liangkuang, to pay a similar duty and be provided with a duty paid certificate, enabling it to enter other ports exempt from further duty. It should be stipulated that, irrespective of province of origin, or point therein where bought, this 7-1/2% is an inclusive charge and that 2-1/2% shall go to the province of origin, and the remaining 5% to the Imperial Government.
It is less easy to devise an equitable mode of taxing native produce along the West River. As shown above, the system at present in force, as far as Steamer borne cargo is concerned, is very unsatisfactory. I would therefore suggest that produce wishing to avail itself of Steamer facilities should pay a uniform rate of 5% between Treaty Port and Treaty Port, stage and stage, Treaty Port and stage, without being subject to any likin or other charges at point of shipment or destination: this 5% should be paid into the Provincial Authorities and in the case of produce passing from one province to another it should be shared equally by those concerned. Should the incidence of the tax prove too heavy, one may assume that transport by Steamer will be abandoned in favour of that by native craft. But, as it is hoped that the principle above indicated, in respect of vessels using steam, will be adopted, no hardship need be felt, nor will junk owners be wholly out of the carrying trade.
Places of call should only be those where a staff to collect duties exists, and duties should be paid on shipment. The duty charge being a uniform one, the fact of produce being on board a Steamer may be taken as proof that duty has been paid thereon, and it can be carried to any point on the river.
The payment into the provincial treasury of the 5% riverine duty will cause Coast trade revenue to disappear from the Customs returns of the ports in the Canton delta. But the whole volume of trade on the West River exclusive of direct imports and exports is so small that the loss of this revenue can be viewed by the Imperial Government with equanimity. It receives the full duty of 5% on foreign Imports and native exports and loses a coast trade duty.