[This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
549
[May 22.]
SECTION 1.
(No. 117.) My Lord,
Sir E. Sutow to the Marquess of Lansdowne.—(Received May 22)
Peking, April 6, 1905. I HAVE the honour to transmit to you herewith paraphrase of a telegram which I have received from His Majesty's Consul-General at Hankow, and of my reply, and copy of a despatch from him on the subject of the levying of li-kin on foreign goods in Chinese hands in the town of Hankow.
I have, &c.
(Signed)
Inclosure 1 in No. 1.
ERNEST SATOW.
Consul-General Fraser to Sir E. Satow.
(No. 13.) (Telegraphic.) P.
Hankow, March 21, 1905. NATIVE buyers of foreign goods imported by a British subject having been compelled to pay li-kin, I complained to the Taotai, quoting to him the instructions given by you to Mr. Flaherty. He has replied, with the approval of the li-kin office, that the town of Hankow is the interior, and after foreign goods have passed into Chinese hands li-kin is payable on all of them.
I have invited him to withdraw this reply and reconsider the matter, but he will
not consent.
It is evident from the communication made this morning by the Viceroy's Secretary that his Excellency supports the contention respecting li-kin.
Inclosure in No. 1.
Sir E. Satow to Consul-General Fraser.
(No. 15.) (Telegraphic.) P.
Peking, March 22, 1905. REFERRING to your telegram of yesterday, you should report amounts extorted and details of cases. On receipt of these I will discuss the question with the Wai-wu Pu.
(No. 30.) Sir,
Inclosure 3 in No. 1.
Consul-General Fraser to Sir E. Satow.
Hankow, March 24, 1905.
I HAVE the honour to report that the case which led to my sending my telegram of the 21st instant has been satisfactorily settled.
The importation of foreign goods at this port long ago passed into native hands almost entirely, with the result that the li-kin authorities levied li-kin in Hankow town without hindrance.
Of late years foreigners of several nationalities opened shops in the town, usually placing a native in charge, and successfully refused to pay li-kin on the supplies for such shops, the Chinese authorities confining their opposition to impugning the foreign character of the business in individual cases.
As regards British subjects, I laid down in November 1902, and communicated officially to the Taotai, the conditions on which I recognized such Chinese agencies of British firms. These were that the lease of the premises must be in the name of the British firm, the books kept in English as well as Chinese, and proof given that the capital actually invested in the business was preponderantly British.
[1977 y-1]