2

I have, therefore, the honour to forward a set of these experimental Rules issued by the Revenue Council, and to request your Excellency to issue instructions for their observance.

Inclosure 2 in No. 1.

I avail, &c.

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

གྲྭ

CHINA TRADE.

CONFIDENTIAL.

[41897]

No. 1.

463-

5508

[December 23]

SECTION 2.

J4 FEE OS

Provisional Regulations for the Transport of Foreign or Native Goods to the newly opened Ports of Manchuria.

(Translation.)

ALL foreign goods on which import duty has been paid at Tien-tsin, Newchwang, Antung, or Tairen, or native goods on which coast trade half-duty has been paid, unless they are to be transported into the interior either under Inward Transit Pass or paying duty and li-kin at custom-houses or barriers en route at the option of the merchant, and as provided by the Rules hitherto in force, if intended for transport by whatever means of conveyance to the newly opened ports in Manchuria, may be provided with a special certificate exempting them from further charges. Such special certificates shall be stamped in accordance with the Regulations, and shall be surrendered within two months. On every application for such special certificates shall be stated over the signature of the applicant the name of the port of destination, and that unless proof of the arrival of the goods at the port of destination is produced within the time allowed at custom-house where the application was made, three times the half-duty shall be paid. An annual bond may be executed in the same terms and deposited with the Customs, to save the inconvenience of executing a bond on every occasion. In the case of foreign merchants the bond shall be sealed by the Consul, and in the case of Chinese by the Customs. Any one who has not executed an annual bond must put in a signed application on each occasion.

Forms for bonds and applications shall be fixed by the Customs.

2. Goods transported under special certificate to the newly opened ports of Manchuria, in order to be in order, must correspond with the description of them given in the application. If they do not so correspond, they shall be regarded as having no special certificate, and besides the penalty of three times the half-duty on the entire quantity due at the custom-house where the application was made, the goods shall be liable to confiscation on arrival at the port of destination.

(No. 262.) Sir,

Sir C. MacDonald to Sir Edward Grey.--(Received December 23.)

Tokió, November 20, 1907. WITH reference to your despatch No. 175 of the 26th August, and my despatch No. 239 of the 28th October last, on the subject of the alleged discrimination in railway rates on the South Manchurian Railway in favour of Dairen at the expense of Newchwang, I have the honour to transmit copy of a despatch from the British Vice-Consul at Dairen, to whom your despatch No. 175 was referred.

It will be observed that Mr. Parlett states that no outward discrimination can be said to exist since the Manchurian Railway Company took over the line from the military authorities. It is true, however, as previously reported, that Dairen is in a much more favoured position with regard to Newchwang than would be the case if freights were strictly regulated by mileage.

(No. 81.) Sir,

I have, &c.

(Signed)

CLAUDE M. MACDONALD.

Inclosure 1 in No. 1.

Vice-Consul Parlett to Sir C. MacDonald.

Dairen, November 13, 1907. I HAVE the honour to acknowledge the receipt of your Excellency's despatch No. 20 of the 31st October, with inclosure in original.

The China Association, in its letter of the 25th June to the Under-Secretary of State for Foreign Affairs, is alluding presumably to the conditions which existed while the South Manchurian Railway was still in the hands of the military authorities. The Japanese themselves confess that Dairen was then favoured at the expense of Newchwang, but when the present Railway Company took possession of the line, and put into force its own freight tariff, a translation of which was inclosed in my despatch No. 34 of the 25th June, this system of discrimination, outwardly, at all events, ceased.

For the convenience of the Foreign Office and of your Excellency, I have the honour to forward herewith a fresh translation of the table of charges for whole cars. It differs from the first only in being slightly fuller, more easily read, and in having the names of stations written with their Chinese instead of their Japanese pronunciation--the latter having been abandoned by the Railway Company.

A cursory glance will show that as far as Hsintaitsu, which is a short distance beyond Mukden (Fengtien), there is an advantage, though not so great as the mileage would warrant, in favour of Newchwang (Yinkow). From Tiehling northwards to Kwangchengtzu, the terminus, the tariff is exactly the same for both ports.

Only in the case of goods not sent by car-load is the freight calculated by distance, and then the advantage--an unimportant one, because no appreciable amount of merchandize is likely to travel in that manner--is in favour of Newchwang.

It will thus be seen that the statement made in the China Association's letter, to the effect that beyond Mukden everything was in favour of Dairen, is no longer correct.

I shall make it my duty to watch carefully for evidence of any action on the part of the railway savouring of partiality.

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