With these reservations, I concur in your view that the scheme proposed might well be given a trial. It would be most desirable that the collection should be entrusted to the Maritime Customs, and that, as you suggest, that Department should have control over the expenditure. You should use your best endeavours to have these suggestions carried through, and you might tell the Taotai plainly that, unless some safeguard is provided, I shall object to the tax being levied at all.
Towards the end of your despatch No. 16 you refer to the Treaty right of foreign shipping firms to effect the "necessary improvements themselves" in the Upper Yang-tsze, but I have to point out that this is not the correct interpretation of the Mackay Treaty; Article V of that Treaty merely states that, until improvements can be carried out, "steam-ship owners shall be allowed, subject to approval by the Imperial Maritime Customs, to erect, at their own expense, appliances for hauling through the rapids." There is some difference between the right to effect the "necessary improvements" and the right to erect "hauling appliances."
I have, &c.
(Signed)
ERNEST SATOW.
Page 6
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1906
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