His Britannic Majesty's government.
CHINA TRADE.
CONFIDENTIAL.
No. 1.
[April 13.]
SECTION 4.
83
Mr. Townley to the Marquess of Lansdowne,-(Received April 13.)
(No. 78.) My Lord,
Peking, February 26, 1903.
ON the receipt of your Lordship's despatch No. 252 of the 4th December, 1902, I addressed a despatch to His Majesty's Consul at Nanking, requesting him to furnish me with information as to the new tax, called "Jen Chwoen Shui," which gave rise to the complaint from Messrs. Brunner, Mond, and Co., of which a copy was inclosed in your Lordship's above-mentioned despatch.
I have now the honour to transmit to your Lordship herewith a copy of the reply which I have received from Mr. Wilkinson, in which he explains the nature of the tax, and states that, with the exception of Mr. Little's clients, the dealers seem to have gladly consented to it.
I have, &c.
(Signed)
WALTER TOWNLEY.
(No. 1.) Sir,
Inclosure in No. 1.
Acting Consul Wilkinson to Mr. Townley,
Nanking, February 12, 1903.
I HAVE the honour to acknowledge the receipt of your despatch of the 16th ultimo, requesting me to furnish you with a report on the imposition at Nanking of a new tax, called "Jen Chwoen Shui," on goods which cannot show a li-kin pass.
The tax in question is a revised "lotishui," or destination tax, on goods arriving at the port by steamer for consumption within the city of Nanking. Under its old name, or simply as li-kin, the tax was levied, until last year, on such goods as they entered the city gates, but, owing to the expenses of collection, the revenue obtained was very small, while the exactions of the officials involved them in constant disputes with this Consulate.
In the hope, therefore, of at once increasing their returns, and avoiding difficulties with this office, the authorities decided recently to allow dealers in any particular article, or class of goods, to commute their "lotishui" for a fixed annual payment. In other words, they farmed out the tax, changing its name to "jenchuanshui," which carries this signification with it.
As the amount demanded by the officials was moderate, the dealers, with the exception of Mr. Little's clients, seem to have gladly consented to the change, and I have had no complaints on the subject.
I cannot agree with Mr. Little's argument that this particular tax is a concrete instance of what is likely to take place when the new Commercial Treaty comes into force.
It is not denied by the Chinese authorities that the tax is "lotishui," and they seek to justify it by contending that it is Hsiakuan, the port of Nanking, and not the city of Nanking, that has been open to trade. This, of course, I have always refused to admit, and I had hoped the question would have been settled once and for all by the Mackay Treaty.
I have, &c.
(Signed) F. E. WILKINSON,
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