This Document is the Property of His Britannic Majesty's Government;
the imposition of import duties on foreign merchandise was intended to admit those goods to particular markets in China, and that it was not intended that these goods should pay other dues until transferred to more distant markets in the interior. Similarly with native products it was only intended that when these were purchased at a more distant market in the interior for conveyance to a Treaty port, and shipment abroad, they should pay a transit due in excess of the export duty.
That the foreign Powers, in negotiating the Treaties, intended that a fairly liberal area should be comprised by the term "Treaty port" or "port open to foreign trade" is evidenced by the use of the terms "cities and towns" in the English text of the British Treaties and "ports et villes" in the French Treaties; also by the rules regarding the issue of passports for travelling in the interior, where no passport is called for within 100 li of the Treaty port.
The tendency, on the other hand, of the Chinese authorities has been to restrict the meaning of the term within the narrowest limits, with the consequence that the tariff on a basis of 5 per cent. ad valorem becomes, in effect, transferred to a 7½ per cent. tariff; and the fact that this unsatisfactory condition of things has existed for years, involving constant friction between China and the Treaty Powers, should, we venture to hope, render your Highness desirous of finding a remedy by introducing methods of taxation less irksome to trade and conformable with the Treaties. The position of the Treaty Powers in this question is well known to your Highness. They contend, as they have always done, that the term Treaty port includes the city and its approaches by land or water, and, further, that no matter whether a place has been opened to foreign trade under Treaty or by the spontaneous act of the Chinese Government the same principle must apply for the sake of uniformity.
The foreign Representatives trust, therefore, that this matter may engage the serious attention of the Board, and that they may be favoured with a reply at an early date, indicating the course of action which the Chinese Government proposes to pursue.
CHINA TRADE.
CONFIDENTIAL.
[27994]
(No. 395.) Sir,
No. 1.
Sir Edward Grey to Sir J. Jordan.
[August 19.]
SECTION 3.
Foreign Office, August 19, 1908.
I HAVE received your despatch No. 335 of the 21st ultimo, regarding the question of the levy of li-kin by the Chinese Government at the Treaty ports.
I approve the terms of the joint note addressed by you and your American and Netherland colleagues to Prince Ch'ing on the 8th ultimo.
His Majesty's Government can on no account admit the contention of the Chinese Government that they are entitled to levy transit dues on foreign goods imported into, or native goods exported from, within the Treaty port itself.
[1904 t---3]
I am, &c.
(Signed)
E. GREY.
We avail, &c.
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