[This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
[39328]
No. 1.
558
131
[November80.]
TRESS 2 JAN 08 SECTION 2-
Sir J. Jordan to Sir Edward Grey.--(Received November 30.)
(No. 487.) Sir,
Peking, October 10, 1907. I HAVE the honour to transmit to you herewith copies of a correspondence which has passed between myself and His Majesty's Consul at Chefoo regarding the action of the Customs authorities at that port in imposing a fine of 100 taels on a British steamer.*
Shipping firms on the coast of China are in the habit of entering into an annual guarantee or bond with the Customs authorities at the various ports, under which they receive special facilities for the working of cargo and clearance of vessels in return for certain obligations which they undertake towards the Customs. A copy of this bond forms Inclosure No. 13 in Mr. Brady's despatch.
The Customs authorities have occasionally made use of this bond for a purpose which it was, in my opinion, never intended to serve, and of which the present case furnishes a typical example.
A vessel commits some offence or irregularity of which her own national authorities are competent to take cognizance, but instead of bringing the case into the Consular Court, the Commissioner of Customs imposes a fine upon the ship and then gives the agents the option of paying it or of having the privileges enjoyed under the bond withdrawn. This, as Mr. Brady explains, penalizes the vessel to such an extent that further trading to the port becomes impossible, and her agents are almost invariably obliged to waive their extra-territorial rights and acquiesce in the Customs decision.
In bringing the circumstances of the "Lienshing" case to the notice of Sir Robert Hart, I pointed out to him that the Commissioner at Chefoo was entirely mistaken in assuming that the Consul was not empowered to deal with it, and I showed him by reference to the Order in Council and other Regulatious that we had adequate machinery for enforcing the provisions of the Treaty. As a result of this representa- tion, Sir Robert Hart has directed the Commissioner of Customs to return the fine and to request His Majesty's Consul to hold an inquiry into the case.
It would be useful for my guidance in such questions if I could be informed whether the Customs authorities have any justification for using the bond as an instrument for inflicting a fine, and to what extent, if any, arrangements of this kind exist and are observed in Great Britain or other countries.
I have, &c.
(Signed)
J. N. JORDAN.
Inclosure in No. 1.
Annual Guarantee or Bond entered into by Shipping Firms and given to Customs.
IN consideration of the Commissioner of Customs at Chefoo agreeing to grant, and granting when applied for, " general discharge permits" (as per manifest inwards) for and (all export duties having been paid) clearances of steamers belonging or consigned to us, we, the Undersigned, as the agents at Chefoo of the said steamers, acting by and with their consent, do hereby jointly and severally guarantee the payment to the said Commissioner of Customs within twenty-four hours from the date of clearance of all the duties due on the inward cargo of each such steamer, And for the and of all fees for special permits granted to each such steamier. consideration aforesaid, we further jointly and severally guarantee that all of the goods discharged from any such steamer under the "general discharge permit” shall be conveyed in duly licensed cargo-boats to the place designated in the "general discharge permit," and shall not be removed therefrom without a stamped permit "
* Not printed.
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