Terdahun depan dat we note - 2ND
[This Document is the Property of His Britannic Majesty's Government.]
67
CHINA TRADE.
CONFIDENTIAL.
[December 29-]-C
SECTION
2752
[43513]
No. 1.
ASOTAR JAN 07)
Sir J. Jordan to Sir Edward Grey.--(Received December 29.)
(No. 459.) Sir,
Peking, November 8, 1906. I HAVE the honour to transmit to you herewith copies of correspondence which has passed between myself and His Majesty's Consul-General at Hankow, respecting a proposal which has been made by the local authorities to levy a cess upon goods in Chinese hands within the port area which are destined for export and not protected by a transit pass.
I have, &c.
(Signed)
J. N. JORDAN,
(No. 66.) Sir,
Inclosure 1 in No. 1.
Consul-General Fraser to Sir J. Jordan.
Hankow, November 1, 1906. I HAVE the honour to apply for your ruling on a proposal made by the Chinese authorities to me and to be made to my colleagues likewise.
Of recent years the funds for educational and other public purposes in this prefecture have been found to a great extent by levying a cess, nominally 1 per cent. ad valorem through their guilds, on all sales made by native dealers.
In June last Messrs. Theodor and Rawlins complained that a dealer in wood-oil, whom they had employed as their agent to procure oil up country and bring it to their hong in Hankow, was being prosecuted for refusal to pay the cess.
As I was far from satisfied that the dealer had not combined his own business with the British firm's, I suggested that the amount mentioned (1,000 taels) was a small transaction.
The firm then said their dealer was willing to pay the cess, really 6 per mille, not through the guild, but direct to the Hanyang Prefect.
This was done, and I suggested to their representative that charges of fraud and disputes as to genuineness of alleged agents would be impossible did they avail themselves of the system of outward transit-passes as extended by the Japanese Treaty and the Hankow Rules of 1903.
The Hanyang Prefect sent the Concession Deputy to see me, and explain that, although he did not impugn the good faith of Theodor and Rawlins, there were foreign firms and compradores of foreign firms who might conspire with native dealers to evade the cess by alleging foreign ownership. The Prefect was ready to guarantee immunity to exports coming down under pass, but hoped I would agree that all other And he has now exports should pay the cess-of course, while still in native hands. written me a note to the same effect.
I replied to the Deputy, and am writing to the Prefect that, as the use of passes is by Treaty optional, 1 cannot compel Britons to take them out, and that, as his proposal would form a precedent for other ports and businesses, I am unable to give a decision upon so serious a matter. I am referring the question to you, and suggest that he have it referred to the Wai-wn Pu.
The special value of the transit-pass lying in its setting a limit to Chinese levies on imports and exports, I submit that the Prefect's proposal can do little harm, for either the half duty will be less than the li-kin plus the cess, and foreigners will resort to the Customs, or else it will be greater and passes will not be taken out, while exports will be relieved of a burden. In addition, the plain admission that such a cess is not chargeable on exports under pass seems to be not without considerable value.
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