[This Document is the Property of His Britannic Majesty's Government.]
C.O.
5512
CHINA TRADE.
CONFIDENTIAL.
RECO REG 17 FEB 06
[January 25.]
SECTION 2.
156
[3001]
No. 1.
Sir E. Satow to the Marquess of Lansdowne,~(Received January 25, 1906.)
(No. 404.)
My Lord,
Peking, November 27, 1905.
WITH reference to my despatch No. 376 of the 8th instant respecting the action of the Customs authorities at Chefoo in forbidding the importation by Messrs. Cornabe, Eckford, and Co. of thirty-five cases of copper coins, I have the honour to transmit to your Lordship a copy of Prince Ch'ing's reply to my note of the 4th instant, stating that, in view of the special circumstances of the case, instructions have been issued for the passing of the consignment through the Customs.
It was, however, by an act of the Finance Commission of the Board of Revenue, which had received Imperial sanction, that rules had been drawn up instructing all provincial authorities to prohibit the exportation of large consignments of copper coins, with a view to the prevention of abuses and the protection of the currency. In the future, whenever any province has issued a Proclamation, under the orders of its high authorities, prohibiting the exportation of copper coins, it will not be possible to issue certificates to foreign merchants permitting them to ship such coins.
I have therefore instructed His Majesty's Consul at Chefoo to warn British merchants that they should in future be careful to ascertain what prohibitions may be in existence that are likely to interfere with their proposed transactions in coined money.
I have, &c. (Signed)
ERNEST SATOW.
Inclosure in No. 1.
Sir,
Prince Ching to Sir E. Satow.
Peking, November 23, 1905.
I HAVE the honour to acknowledge receipt of your Excellency's note of the 4th instant, complaining of the action of the Customs authorities at Chefoo in forbidding the import by Messrs. Cornabe, Eckford, and Co. of thirty-five cases of copper coins (note under acknowledgment quoted at length).
This Board communicated with the Finance Commission on this subject, and have now received the following reply:-
“The Finance Commission, in ruling that it should be prohibited to export large consignments of copper coins, were actuated by a desire to protect the currency, as it was to be feared that if copper coins bought at a low rate for sale at a high price were handled in large quantities the market rate of exchange would be unstable and trade would suffer. Moreover, the prohibition only applies to large consignments leaving a province, and not to small quantities carried by individuals for their requirements while travelling, or to the copper coins of one province being used in small quantities in another province. There is in this no hindrance to the free circulation of the national coinage.
“In the case under consideration, Messrs. Cornabe, Eckford, and Co.'s consignment, amounting as it does to thirty-five cases, must be considered as a large quantity, but as the shipment in question has already reached the Chefoo Customs, we would suggest that your Board should decide upon the question whether it should be allowed to be imported, and telegraph accordingly to the Governor of Shantung.”
This Board have thereupon telegraphed to the Governor of Shantung that he should instruct the Taotai to allow the thirty-five cases of copper coins shipped to Messrs. Cornabe, Eckford, and Co. to pass the Customs on this occasion. But there are certain observations which I must make upon the subject. Abuses are certain to ...
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