This Document is the Property of His Britannic Majesty's Government.
3
In view of the improbability of the other Powers coming to any arrangement with China for some time as to the amount to which the import duties should be raised, particularly on the land frontier, it is important that it should be made clear to China that we shall insist on the other parts, which are all (except as regards morphia) concessions to the Treaty Powers indiscriminately not requiring any sacrifice on their part, coming into operation whether the Powers give their assent or not. If this is not done the new arrangements for instance as to inland navigation, mining, and the movement of grain, which put an end to long-standing disputes with China, may be indefinitely delayed. It is a question, however, whether it would be better before raising the question at Peking to find out whether representations on the subject might cause the Chinese to refuse or delay ratification. In that case the notification might be made after ratification, if the Chinese show an inclination to delay.
The wording of paragraph 10 of the King's Speech of the 18th December last shows that, in the opinion of His Majesty's Government, only the li-kin and morphia clauses require the assent of the other Powers. The paragraph runs as follows:---
"I have concluded with His Imperial Majesty the Emperor of China a Commercial Treaty which promises to secure, not only for this country, but for the commerce of the world, valuable facilities and advantages. Portions of this Treaty will not become operative unless the same engagements be entered into with China by other Powers; it contains, however, provisions of great value which do not depend upon their assent.”
C. SOMERS COCKS.
Foreign Office, January 15, 1903.
(Signed)
CHINA TRADE.
CONFIDENTIAL.
No. 1.
[February 16.]
SECTION 1.
28
Mr. Jamieson to the Marquess of Lansdowne.—(Received February 16.)
(No. 1. Confidential.)
Shanghae, January 9, 1903.
My Lord,
I HAVE the honour to inclose translation of a Memorandum handed by the Japanese Treaty Revision Commissioners to the Representatives of the Chinese Government about a fortnight ago. Bearing in mind the numerous cases of illicit publication in the native press of official documents connected with Sir James Mackay's negotiations, the Japanese Commissioners at the outset stipulated for absolute secrecy so far as their communications were concerned. Every care was therefore exercised to prevent leakage, but, in spite of all precautions, one of the Chinese newspapers has at last been able to corrupt some one. Intense annoyance has, I understand, been caused to all parties by this unwelcome revelation.
In the event of the Japanese Government not having kept your Lordship fully informed as to the line of action which they are pursuing in the matter of Treaty revision, I venture to think that the inclosure cannot fail to be of interest.
The spirit of ingenuous selfishness, and the complete absence of any regard for the interests of Chinese producers or manufacturers, therein displayed require no comment.
I have, &c.
(Signed) J. W. JAMIESON,
Commercial Attaché,
0
Inclosure in No. 1.
Memorandum on Treaty Revision, handed by the Japanese Commissioners to the Representatives of the Chinese Government, December 29, 1902.
1. SECTION 2 of Article VIII of the British Commercial Treaty lays down that foreign goods, on importation, in addition to the effective 5 per cent. import duty as provided for in the Protocol of 1901, shall pay a special surtax equivalent to one and a-half times the said duty, to compensate for the abolition of li-kin, of transit dues in lieu of li-kin, and of all other taxation on foreign goods.
In our opinion, this surtax of one and a-half times the duty laid down in the Protocol is excessive; a mere doubling of the import duty was all that was required.
The rate of import duty hitherto levied by China on foreign goods has only been a little over 3 per cent, ad valorem. For purposes of the indemnity this rate was raised to an effective 5 per cent., and now, after a very short interval, it is proposed to raise it to 12 per cent., or four times the rate previously in force. Granted that the abolition of li-kin may prove of advantage to commercial relations between China and other Powers, yet a hasty, ill-considered change of this kind is certain to hamper trade. Japanese trade with China, moreover, is not as yet in a very flourishing condition, and we apprehend that this proposal will have the effect of seriously curtailing the same.
Section 2 goes on to say that the same amount of surtax shall be levied on goods imported across the land frontiers, but it is extremely improbable that Russia or France will agree to this stipulation. Proof hereof is afforded by the attitude of these two Powers in the course of the Treaty negotiations in Peking.
On these grounds the surtax on imported goods should not exceed the equivalent of the present import duty.
2. In terms of Article VIII of the British Treaty, imported coal must also pay this surtax of one and a-half times the import duty.
Now, coal is at present only consumed in and around the Treaty ports, as, owing to its bulk, it cannot be conveniently conveyed far into the interior, and this condition of things is likely to continue.
Therefore, it is manifestly improper to impose on coal a surtax of one and a-half times the import duty to make up for the loss in li-kin revenue.
It should be liable to import duty only, and not subject to any surtax.