This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
586
[December 19.]
SECTION 2.
Sir,
No. 1.
China Association to Foreign Office.--(Received December 19.)
159, Cannon Street, London, December 18, 1903.
I HAVE the honour to acknowledge the receipt of your letter of the 16th instant, transmitting an extract from a despatch from Mr. Consul Litton, in which he desires to have instructions on the subject of the levy of li-kin in Yunnan.
The Committee thank the Marquess of Lansdowne for his courtesy in asking for their opinion. From the information given in Mr. Consul Litton's despatch, it appears that li-kin on yarn in Yunnan has hitherto been levied in the least burdensome manner and according to a fixed tariff. The area freed by the one payment of 2.50 taels per load has been liberal compared with that in other portions of the Chinese Empire. Where facilities to trade such as this have once become recognized, it would be a retrograde step to allow them to be curtailed, and in view of the possible early adoption of Article VIII in the Treaty of Shanghai, when li-kin will be entirely abolished, the Committee are of opinion that any changes for the worse in levying li-kin on goods of any description are to be deprecated. The size of the load is undefined.
With regard to the question whether a transit pass taken out for a named distant city would allow goods to be sold in a city nearer to the first port of entry, the Committee would strongly urge that this facility should be continued. It is true that the applications for transit passes always name some special destination, but the wording of the Treaty of Tien-tsin, Article XXVIII, is "from a port to an inland market" is of wider significance than the special city market named in the transit pass, and goods having once paid for a transit pass should be free for disposal at any place en route. The transit pass is shown at each li-kin station on the journey, and can be cancelled where the goods are sold. No loss of revenue or other injury to the native officials is incurred by the sale of the goods en route.
The term
It is probably worth noting that this payment of li-kin is said to free the goods in Yunnan for a stated time, say three months, and it would be desirable when Article VIII is about to be ratified to guard against any similar construction being placed on the surtax clauses; goods on which surtax has been paid must be free from any other levy, no matter how long they may have been in China.
I am, &c.
(Signed)
JOSEPH WELCH,
Hon. Secretary.
[2250 t--2]