2
that she is prepared to reform her currency and carry out the other provisions of the 1902 [ 1903] Treaties which have remained in abeyance during the last six
years. I have, &c. (Signed)
Inclosure 1 in No. 1.
Prince Ch'ing to Sir J. Jordan.
J. N. JORDAN,
Peking, 34th year, 12th month, 6th day (December 28, 1908).
(Translation.) Sir,
THE Commercial Treaty between China and the United Kingdom of 1902, and the Commercial Treaty between China and America of 1903, both contained Articles providing detailed arrangements for the abolition of li-kin in return for an increase in the Tariff. The Commercial Treaty between China and Japan of 1903 also provided for the acceptance of similar terms. But as the Commercial Treaties with various Powers have either not been negotiated or have not been concluded, the principle of increasing the Tariff and abolishing li-kin has to this day failed to be put into practice.
We have now reached a moment when China is reorganizing her finances, and unless effect is given to this measure it will not be possible to carry out all the necessary steps; moreover, this measure not only affects the finances of "China, but is fraught with great advantages to foreign trade with China. This Board has, accordingly, addressed communications to all the foreign Representatives in Peking, requesting that their Governments may be asked to appoint officers to co-operate with this Board in framing an article providing for the increase of the Tariff and the abolition of li-kin, on the lines laid down in the Commercial Treaties already made, in order that this measure may be brought into effect at an early date.
I trust, therefore, in now addressing your Excellency upon this subject, that you will inform His Britannic Majesty's Government and that we may receive their consent support. I have the honour to request also that your Excellency will be good enough to acquaint me in advance with the views of your Government.
I avail, &c.
3
It is of the utmost importance that the scheme of substituting an increased customs duty for li-kin should be put into force as soon as possible. The revenue from the customs is the main source from which the interest on foreign loans † is paid, and an increase of 20 taels (30,000,000 per annum) would add greatly to China's credit.
He urges, therefore, that instructions should be issued to the Departments concerned to put into effect at once the reforms with reference to the laws, Mining Regulations, &c., already decided upon, and that, as regards the currency, it should be established on a uniform basis without delay with the tael as the unit.
September 22, 1908.
(Translation.)
Inclosure 2 in No. 1.
Memorial by Tong Shoa-yi.
THE memorialist has received Imperial instructions to proceed to foreign countries for the purpose of discussing questions connected with the enforcement of the provision in recent Commercial Treaties for the increase of the customs duties in return for the abolition of li-kin. The six most important stipulations in the Com- mercial Treaties referred to law reform, Mining Regulations, trade-marks, uniform weights and measures, currency, and the abolition of li-kin. The last matter was the only one requiring the assent of foreign nations, all others being left entirely to the discretion of China. All these questions, with the exception of the currency, have been under consideration within the last few years, and although not yet definitely settled are being gradually put on a proper basis. The question of a uniform currency must also be approached without delay. At present the chief point of disagreement is on the question whether a tael or a dollar basis should be adopted. The memoralist is strongly in favour of the former course, on the grounds that it has been so long established in China, and is on a decimal basis, with which the people are thoroughly familiar. Some argue that the dollar would be more convenient for foreign trade, but the open ports only form a very small fraction of the whole Empire, and their interests cannot be set against those of the nation. Even at the present the foreign banks always fix their rate of exchange in taels, and any inconvenience that might arise would only last for a few years until people grew accustomed to the new conditions. Another objection to the tael is on account of its bulk, but this could be obviated by coining large quantities of half tael pieces, fifteen of which would be equivalent to 17.
• In 1907, about 5,500,0001. (from which 10 per cent. for cost of collection must be deducted).
+ In 1908, 7,301,1637
į
590