CL S

This Document is the Property of His Britannic Majesty's Government.]

CHINA TRADE.

CONFIDENTIAL.

C. O.

35:50

[August 17.]

20 SEP 05 SECTION 2.

327

No. 1.

(No. 241.)

Mr. Townley to the Marquess of Lansdowne.-(Received August 17.)

My Lord,

Peking, June 22, 1903. WITH reference to your Lordship's telegram No. 112 of the 15th instant, respecting the establishment of a custom-house at Daluy, I have the honour to transmit herewith a copy of the Agreement between the German and Chinese Governments regulating the customs administration of Kiao-chau.

I have, &c.

(Signed) WALTER TOWNLEY.

Inclosure 1 in No. 1.

Agreement about the Establishment of a Maritime Customs Office at Tsingtao.

1. THE Commissioner or the Chief of the Maritime Customs Office at Tsingtao is to be of German nationality. The Inspector-General of Customs will come to an understanding with the German Legation at Peking in case of appointing a new Commissioner.

2. The members of the European staff of the Maritime Customs Office at Tsingtao shall, as a rule, be of German nationality. In case, however, of a suddenly occurring vacancy or of temporary requirements of the service, members of other nationalities may be provisionally sent to Tsingtao.

3. The Inspector-General of Maritime Customs will inform the Governor of Kiao-chau beforehand about all changes in the staff of the Customs Office at Tsingtao; this, however, does not apply to the employés of the Chinese staff.

4. All correspondence between the Customs Office at Tsingtao and the German authorities and German merchants shall be conducted in the German language. Should, however, merchants of other nationality come to reside at Tsingtao, they shall be at liberty to correspond in their language; correspondence in Chinese shall be likewise permitted.

5. On merchandise brought by sea to Tsingtao no import duty shall be levied. Import duties according to existing Treaties shall be levied by the Maritime Customs Office on all merchandise or products passing the German frontier of Kiao-chau into the interior of China. The German authorities agree to take suitable measures to assist as far as it is possible in the prevention of merchandise passing the German frontier when not provided with a permit to pass by the Maritime Customs Office.

6. When Chinese merchandise or products brought from the interior of China into the German territory of Kiao-chau are shipped from Tsingtao to other places, they will pay the export duty according to existing Treaties. Produce raised in, and merchandise manufactured from produce raised in or imported by sea into, the German territory of Kiao-chau shall pay no export duty. The duty to be paid by articles manufactured in the German territory from materials brought there from the interior of China will be settled later.

7. Chinese merchandise or products brought from Chinese Treaty ports to Tsingtao shall pay no duty as long as they remain inside German territory; but if these Chinese merchandise or products pass the German frontier into the interior of China, they shall pay according to existing Treaties.

8. Chinese merchandise shipped from Tsingtao, and having paid accordingly export duty, shall be provided with a receipt, on the producing of which it shall pay, on being landed at a Chinese Treaty port, a coast trade duty according to existing Treaties.

9. For European and other non-Chinese merchandise, on being shipped to Tsingtao from a Chinese Treaty port, the import duty paid at the latter port shall be refunded by

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