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difficulty was about; which he obligingly did.
Foreign (i.e. non-French) goods imported into
Yunnan via Tonkin pay, as you are aware, 20% only
of the General Tariff. In order that they may be
entitled to this reduction the French Custom House
naturally requires to be satisfied that the goods
really do pass into China and are not sold in French
territory.
Towards the end of last year a Chinese
merchant reported the loss of his merchandize (which
was in transit) by wreck of a boat in the Red River.
The French Customs authorities were for some reason
suspicious as to the genuineness of this loss and,
before letting the goods off with the reduced tariff,
instituted inquiries and asked for proof of the
wreck. The Chinese traders in Yunnan became alarmed
at this and took it to mean that even when a boat went
down in the river with goods in transit, they would
have to pay the full tariff unless they were able
to point out the goods lost to the nearest Customs
authorities, which would of course be ridiculous,
They also jumped to the conclusion that this was a
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