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(This Document is the Property of His Britannic Majesty's Government1
AFFAIRS OF CHINA.
CONFIDENTIAL.
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No. 1.
246
35776 [September 9.]
RECO SEOFON 7.0CT 07
Sir J. Jordan to Sir Edward Grey.--(Received September 9.)
(No. 354.) Sir,
Peking, July 22, 1907. WITH reference to my despatches Nos. 38 and 80 regarding the trading rights of British merchants in the city of Changsha, I have the honour to inclose copy of a despatch from His Majesty's Consul at that port dated the 18th June, showing that the attempt to levy consumption tax on foreign goods entering the city has been revived.
I also have the honour to inclose a copy of the note which I have addressed to Prince Ching on this subject on the 15th instant pointing out that a serious situation will be created if His Majesty's Government is forced to the conclusion that China cannot put a stop to such violations of Treaty principles by the provincial authorities.
I have, &c. (Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Consul Hughes to Sir J. Jordan.
(No. 16.) Sir,
Changsha, June 18, 1907. I HAVE the honour to forward herewith copy and translation of correspondence with the Taotai on the subject of an attempt to levy li-kin on foreign goods entering Changsha City.
On the 19th May the agent of the British-American Tobacco Company reported to me that six cases of cigarettes, which he was sending into the city that morning, had been stopped at the west gate by the li-kin officials for non-payment of li-kin ("lo ti chuan "). I advised him to send the goods to the city again the same day, and if they were stopped to exhibit my official card. This was done, and my card duly presented, but without effect.
I thereupon wrote to the Taotai complaining of the action of the li-kin officials, and informing him that I had directed the Tobacco Company to send the cigarettes into the city again on the following morning. The cigarettes were allowed to pass this time, but the Taotai replied to my letter maintaining the right to levy the li-kin. On the same day he sent one of his interpreters to propose as a temporary arrangement" that, when the Tobacco Company sent cigarettes into the city, the li-kin on them should be collected from the consignees (who are also the agents), the Chinese firm of Yuan Tai. I replied that this proceeding was out of the question, that the cigarettes were exempt from li-kin as long as they were in the port, no matter in whose hands.
I warned the agent of the Tobacco Company of the Taotai's proposal and asked him to direct Yuan Tai to resist the levy of the tax. On the 31st May I received a despatch from the Taotai informing me that it had been arranged to collect the li-kin from Yuan T'ai. I protested against this action as being an attempt to evade the Treaty.
Up to the present the li-kin officials have not made any demand for the li-kin or in any way molested the firm of Yuan Tai.
Only on one previous occasion had cases of cigarettes been sent into the city, the goods being as a rule conveyed in small lots in bags. The business of the Tobacco Company is, however, growing rapidly, large consignments will be frequent, and it is possible that another attempt to tax the cigarettes will be made before long.
I have, &c. (Signed) M. HUGHES.
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