[This Document is the Property of His Britannic Majesty's Government.]

305

CHINA TRADE.

CONFIDENTIAL..

[4407]

No. 1.

7526 [February 9.]

SECTION 128 FEB 07,

Sir J. Jordan to Sir Edward Grey.-Received February 9, 1907.)

(No. 553.) Sir,

AS I had the honour to inform you in my telegram No. 241, of the 9th instant, I

Peking, December 27, 1906. duly instructed Mr. Fulford, His Majesty's Consul-General at Mukden, on receipt of your telegram No. 211 of the 6th December, to send a Consular officer to Antung to inquire into the British-American Tobacco Company's complaint, to ascertain what duties are being levied there, and whether there is any discrimination. I requested him at the same time to instruct the officer selected for this duty to take the opportunity of reporting generally on the state of affairs at Antung, viz., the Japanese Military Settle- ment area, the choice of site for the Customs, the railway connection across the Yalu, the prospects of trade, &c.

I have now received a despatch from Mr. Fulford, copy of which I have the honour to inclose, reporting that he has directed Mr. Coales, Second Assistant at Newchwang to proceed to Antung, and that on the latter's arrival at Mukden he will furnish him with further verbal instructions. Mr. Fulford also reports a conversation which he has had with the Tartar General on the subject of the Tobacco Company's grievance.

I have, &c.

(Signed)

J. N. JORDAN.

(No. 4.) Sir,

Inclosure in No. 1.

Consul-General Fulford to Sir J. Jordan.

Mukden, December 15, 1906.

IN accordance with the instructions conveyed in your despatch No. 1 of the Sth instant, I have directed Mr. Coales, who is at Newchwang, to proceed to Antung as soon as particulars are received from the Chefoo Agent of the British-American Tobacco Company respecting his complaint as to differential duties at Antung. Mr. Coales will have to come to Mukden to take the railway hence to Antung, a two days' journey, and I will then have an opportunity of giving him further verbal directions before he starts.

When the Tartar General was calling upon me on the 10th instant, I mentioned the grievance of the Tobacco Company. He replied that the Japanese objected to pay any tax at Antung, except the Customs Tariff duty, and that they urged that they could not pay this, because the Maritime Customs bad not been opened there. Under these circumstances, the Tartar General said, the amounts they should pay were being "recorded" against them.

Pending further inquiries and particulars of the Company's complaint, I did not pursue the subject further at the time, beyond remarking that it did not appear equitable that the Japanese should escape payment of duties whilst other foreign merchants' goods had no such privilege. The Tartar General seemed to think that the Japanese goods would not eventually avoid payment,

A native paper bere contains accounts of anti-taxation disturbances amongst the Chinese near Antung, and Mr. Coales may be able to ascertain some particulars of the general state of affairs there.

I have, &c. (Signed)

II. E. FULFORD.

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