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nor can the Chinese Government be debarred from putting it under general regulations. If Her Majesty's Government decide that my reading of the Treaty is erroneous, an But unless I am arrangement more favourable to foreign shipping may be made, entitled to demand it as of right, I think the question is settled on terms as favourable as at present can be obtained."

Mr. Bruce to Foreign Office, No. 129, September 23, 1861.

Forwards letter of the 26th August from Chamber of Commerce and his reply of the 23rd September.

Prince Kung to Mr. Bruce, September 21; Mr. Bruce to Prince Kung, October 9, 1861.

(The English versions of these two despatches are missing, but the contents, in so far as they bear on coast trade, are sufficiently explained in Mr. Bruce's despatch No. 150 of the 26th October, 1861, to Foreign Office, to make it unnecessary to retranslate them.)

Mr. Bruce to Foreign Office, No. 145, October 12, 1861.

Transmits copies of correspondence with Prince Kung on the subject of duties on native produce carried coastwise (amongst other matters).

L

British Chamber of Commerce to Mr. Bruce, October 19, 1861.

It is with much regret that the Chamber learns that your Excellency does not consider that the privilege of sharing in the coasting trade is a right which can be claimed by Treaty, and consequently that you are of opinion that the recent settlement effected, by which Chinese produce transported from port to port for local consumption is subject to the Tariff duty on shipment and a half duty on discharge, is as favourable as can at present be obtained."

The Chamber held a different view, and gave their reasons.

Mr. Bruce to Foreign Office, No. 150, October 26, 1861.

Refers to No. 145 and its inclosures.

"The remaining difficulty with which I have had to deal is connected with the coasting trade, which has been carried on without Treaty right, and without the sauction of the Imperial Government, at different ports under different conditions for some time past. It is now agreed that native produce, when brought from one Chinese port to another and entered for home consumption, shall pay Tariff daty at the port of shipment and half duty at the port of discharge. I have provided by a system of drawbacks against the foreign export trade being subject to this latter tax."

Regulations relating to Transit Dues, Exemption Certificates, and Coast Trade, published at Shanghue under authority from Her Majesty's Minister on October 30, 1861.

(The text of the Agreement referred to above is found in vol. 2, p. 609, of Hertslet's "China Treaties under section 3, Coast Trade Duty, of the "Regulations relating to Transit Dues, Exemption Certificates, and Coast Trade.")

Mr. Bruce to Foreign Office, No. 158, November 10, 1881.

Incloses letter from British Chamber of Commerce of the 19th October with comments.

"As to coasting trade and Chiuese produce, Her Majesty's Government laid down in despatch No. 61 of 1956 to Her Majesty's Plenipotentiary that we had no right under

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the Treaty of Nanking to carry on a coasting trade in Chinese produce, and that that right had not accrued, though some Chinese officers had connived at the practice. The subject was not dealt with by the Treaty of Tien-tsin, on the ground that it was not a right so recognized by international practice in Europe as to justify us in imposing it by force. It has now been allowed at all the ports, and I still think that it is a considerable point gained to have succeeded in obtaining a sanction for it on the terms acceded to -- indeed, I could not effect more, and the choice was between that arrangement and the imposition of full Tariff duties both at the port of shipment and the port of discharge. ! have provided, I hope, in a manner as little onerous as possible by a system of drawback for the recovery of the duty, due at the port of discharge in favour of produce to be shipped for foreign ports."

The coast trade privilege secured under the Regulations of the 30th October, 1861, was made a stipulation in the following Treaties ;-

Hertsiet, Vol. I, p. 145

55

p. 372

p. 118

51

p. 238

Denmark Spain Belgiunt

July 19, 1963.

p. 108

p. 279

5+

P. 417

Italy

Austria-Hungary Portugal United States

October 10, 1964. November 2, 1865. October 28, 1866. September 2, 1869. December 1, 1987.

0

November 17, 1880,

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