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The Government of His Most Faithful Majesty agrees to continue as heretofore to co-operate with the Government of His Imperial Chinese Majesty in the collection of the duty and l-kin on opium exported from Macao to China, and also to co-operate in the repression of smuggling in accordance with the Treaty and special Opium Convention of the 1st December, 1887.
In order to render this co-operation effective, it is clearly stipulated that all opium imported into Macao shall, on arrival, be registered at the special Government Bureau provided for this purpose, and the Portuguese Government will take the necessary steps in order to have all this opinm stored under its exclusive control in a depôt from which it will be removed as required by the demands of trade.
The quantity of opium required for consumption in Macao and its dependencies will be fixed annually by the Government of Macao in agreement with the Commissioner of the Imperial Maritime Customs, referred to in Article II of the above-mentioned Convention, and under no pretext will removal from the Portuguese Government depôt be permitted of any quantity of opium for local consumption in excess of that fixed by the said Agreement, necessary measures will be taken to prevent opium removed from the depôt for re-export to any port other than a port in China being sent fraudulently to Chinese territory.
The removal from the depôt of opium for export will not be permitted, except on production of proof that such opium has already paid all dues and duties leviable thereon by China.
The Rules for the carrying out of this Article shall be arranged by Delegates from the Government of Macao and the Chinese Imperial Maritime Customs.
ARTICLE IV.
Such steps as are necessary for the repression of smuggling in the territory and waters of Macao shall be taken by the local Portuguese Government in concert with the Commissioner of the Imperial Maritime Customs, and similar steps in the Chinese territory and waters near Macao shall be taken by the Imperial Maritime Customs in concert with the Portuguese Government of Macao.
This co-operation is intended to render such steps effective on all points in respect of which co-operation is needed and to avoid at the same time any injury to the sovereign rights of either of the High Contracting Parties.
Special Delegates from the local Government of Macao and the Imperial Maritime Customs shall proceed to fix the respective zones of operations, and shall devise practical means for the repression of smuggling.
ARTICLE V.
With a view to the development of trade between Macao and neighbouring ports in the Kwangtung Province, the High Contracting Parties have agreed as
follows:-
1. Portuguese steamers desireus of proceeding for purposes of trade from Macao to any of the ports of call and passenger stages on the West River, enumerated in the special Article of the English Burmah Convention of 1897 and Article X of the British Treaty of Commerce of 1902 shall be permitted to do so, provided they comply with The Special Regulations to be framed for this purpose by the two High Contracting Parties.
2. Steamers specially registered for trade under the Inland Waters Steam Naviga- tion Rules shall be permitted to ply between Macao and places in the department of Kwangchow-fu other than those mentioned in section 1, provided they report to the Kungpei-kuan Customs for examination of cargo and payment of duties in accordance with Special Regulations to be framed for this purpose by the two High Contracting
Parties.
Such vessels may engage in all lawful trade, including the towage of junks and conveyance passengers and cargo, subject to the Regulations for the time being in
torce.
of
The privileges bereby granted are granted on the express understanding that Special Regulations shall be framed defining in detail the conditions under which such traffic be carried on.
may
Until then the said Regulations have been agreed upon and
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published, this Article shall not become operative; and subsequently only on compliance with the said Regulations.
ARTICLE VI.
Portugal having the right of most-favoured-nation treatment, it is clearly stipulated that any advantages China may think fit to grant to any nation in the importation of agricultural products, specially wines and oil, or in the importation of industrial products, specially woollen and cotton goods and preserved food-stuffs, shall be extended to similar goods of Portuguese origin on exactly the same conditions.
It is also clearly understood that Portuguese wines of all kinds proved by means of certificate of origin, issued by Portuguese Consuls, to have been imported from Portugal, direct or otherwise, shall, when their alcoholic strength exceeds 14°, pay the duty leviable according to the annexed Tariff on wines exceeding 14° of alcoholic strength. Wines passed through the Chinese Customs under designation "Port Wine," shall not be entitled to the benefit of this Article unless accompanied by a certificate of origin as above.
ARTICLE VII.
Portuguese subjects may frequent, reside at, and carry on trade, industries, and manufactures, and pursue any other lawful avocation in all the ports and localities in China which have already been or may hereafter be opened to foreign residence and trade; and wherever in any such ports or localities a special area has been or may hereafter be set apart for the use and occupation of foreigners, Portuguese subjects may therein lease land, erect buildings, and in all respects enjoy the same privileges and immunities as are granted to subjects of the most favoured nation.
ARTICLE VIII.
Whereas China, with the object of reforming its fiscal system, proposes to levy a surtas, in addition to the Tariff duties, on all goods passing through the custom-houses, whether maritime or inland and frontier, in order to make good the loss incurred by the complete abolition of li-kin, the Portuguese Government agrees that foreign goods imported into China by Portuguese subjects shall on entry pay an import surtax equivalent to one and a-half time the duty fixed by the import Tariff as now revised, and that Chinese produce exported abroad by Portuguese subjects shall pay export duties, inclusive of the Tariff export duty, not exceeding seven and a-half per cent., ad valorem, provided always that such import, surtax, and export duties have been accepted by all the Powers having Treaties with China. With regard to the produce tax, consumption tax, and exeise, as well as the duties on native opium and salt, leviable by China, Portugal further agrees to accept the same arrangements as shall be agreed upon between all the Treaty Powers and China. It is, however, understood that the commerce, rights, and privileges of Portugal shall not, in consequence of this under- taking, be placed in any way at a disadvantage as compared with the commerce, rights and privileges of any other Power.
ARTICLE IX.
Drawback certificates for the return of duties shall be issued by the Imperial Maritime Customs to Portuguese subjects within twenty-one days from the date of presentation to the Customs of the papers entitling the applicant to receive such draw- back certificates.
These certificates will be accepted at their face value by the Customs authorities at the port of issue in payment of duties of all kinds, tonnage dues excepted; or shall, in the case of drawbacks for duty paid or foreign goods re-exported abroad within three years from the date of importation, be redeemable in full in ready money by the Imperial Maritime Customs at the port of issue, at the option of the holders thereof.
But if, in connection with any application for a drawback certificate, the Customs authorities discover an attempt on the part of a Portuguese subject to defraud the revenue, he shall be liable to a fine not exceeding five times the amount of the duty
[2288 dd-1]
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