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مریم
[This Document is the Property of His Britannic Majesty's Governme£t.]
519
26884 !
CHINA TRADE.
CONFIDENTIAL.
[23381]
No. 1.
IREC (July 1 29 JUL 07)
SECTION 2.
[
(No. 249.) Sir,
Sir J. Jordun to Sir Edward Grey.-(Received July 15.)
I HAVE the honour to inclose copy of a despatch from His Majesty's Consul-
Peking, May 28, 1907. General at Mukden, reporting an arrangement which has been made between the United States' Consul-General there and the local Foreign Board with regard to the levy of consumption tax on foreign goods in the towns of the open marts in the Province of Shengking. It is agreed that all foreign goods imported into the open cities in their entirety, if covered by exemption certificates issued by the Maritime Customs, shall not be subject to inland taxes, but that record shall be kept of the quantity of the goods, and the amount of inland dues to which they are liable. Should the Govern- ments of China and the United States decide that inland dues may be levied outside foreign settlements, the amounts recorded shall be collected.
Mr. Fulford interprets this understanding as meaning that the consumption tax will be held in abeyance on all foreign goods imported into the open towns pending the decision of the question whether the whole of the towns is to be considered open to foreign trade, and doubtless he is correct in considering it a virtual surrender of the Chinese contention that only the foreign settlements should be regarded as the inter- national trading marts.
There is only one point which does not appear to be quite clear, and with regard to which I am asking Mr. Fulford for fuller information. The arrangement apparently relates only to foreign goods which are imported under Customs exemption certificates, and which remain in their entirety; but nothing seems to be said as to the treatment of the goods after they leave the certificate and pass into the hands of native consumers within the cities. The words "in their entirety" would seem to imply that once the loads are broken up the goods will be subject to inland taxes.
I have, &c.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
I
4T
(No. 16.) Sir,
Consul-General Fulford to Sir J. Jordan.
Mukden, May 24, 1907. WITH reference to the question of the levy of consumption tax on foreign goods in the towns of the open marts in this province, I have the honour to inform you that the American Consul-General has come to an understanding with the Mukden Government which should settle the matter satisfactorily for the time being.
I inclose copy of a letter dated the 16th instant from Mr. Straight to the Mukden Foreign Office, and translation of the reply of the Foreign Office dated the 20th instant, which have been supplied to me by Mr. Straight.
The understanding is to the effect that the tax will be held in abeyance on all foreign goods imported into said towns, pending the decision of the question whether the whole of the towns are to be considered open to foreign trade.
It appears to me that this arrangement is a virtual surrender of the Chinese contention that only the foreign settlements should be considered to be international trading marts. The provisos attached to the understanding seem designed merely to
save face."
I have, &c. (Signed)
H. E. FULFORD.
[2564 p-2]