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At a meeting of the diplomatic body held on the 21st December last, it was decided, as a first step, to charge a committee, composed of the assistant Chinese secretaries of the German, British, American, French, and Japanese Legations, with the duty of examining the whole question and submitting a report. At a further meeting of the diplomatic body held on the 18th February last, the report of this committee, of which I enclose a summary, was exhaustively discussed. It was felt that as the existence of the octroi had been tacitly recognised for so long, the best course would be to come to a compromise agreement with the Chinese Government, whereby the tax should be officially recognised in return for certain guarantees that the privilege should not be abused, but it was decided that it would be inopportune to raise the question of the right of residence of foreigners in Peking. A committee composed of the German and French Ministers, the American chargé d'affaires and myself, was appointed to draw up a note on these lines from the doyen to the Wai-wu Pu. The committee accordingly met on the 23rd March last, and agreed on the draft note, copy of which I have the honour to enclose herewith. You will observe that the note begins by pointing out the illegality, according to treaty, of octroi both in Peking and in the surrounding district; it lays stress on the fact that the refusal of the Imperial Maritime Customs at Tien-tsin to issue transit passes for foreign goods proceeding to Peking is contrary to treaty, and demands that such passes he issued in future. Having thus stated the position with regard to treaty rights, the note declares that the foreign representatives would be willing to come to an arrangement with the Chinese Government, whereby octroi would be levied subject to the following conditions:-
1. That the tax shall only be charged on goods actually entering the walled precincts of the city of Peking.
2. That the tax shall not exceed the present rate of 3 per cent. ad valorem, and shall be calculated on the appraisement made by the Imperial Maritime Customs, and appearing on the transit passes.
The calculation shall be so made as never to exceed
three-fifths of the import duties paid to the Imperial Maritime Customs.
3. That the tax shall only apply to merchants.
4. That the octroi employés shall be bound to accept the appraisements in the transit passes, and shall only have the right to verify the identity of the packages presented with those enumerated on the transit pass. They must abstain from any examination of their contents.
5. That the concession thus made by the Powers shall in no case be interpreted by the Imperial Government as implying a right to establish octroi charges or any other taxes on foreign merchandise in any other part of the Empire. The draft note was then circulated among the foreign representatives and finally adopted at a meeting of the diplomatic body on the 21st ultimo, but as the proposed arrangement involved a derogation of a treaty right, it was resolved that we should obtain the adherence of our Governments before forwarding the note to the Wai-wu Pu.
I have therefore the honour to recommend this proposed agreement to your favourable consideration, and to request that you will inform me whether I am authorised to join my colleagues in addressing this joint note to the Wai-wu Pu.
I have, &c.
W. G. MAX MÜLLER.
Monseigneur,
Enclosure 1 in No. 1.
Dean of Diplomatic Body to Prince Ch'ing.
Pékin, le 7 décembre, 1909. LES cas deviennent de plus en plus fréquents où des marchandises à destination de villes chinoises autres que Pékin et accompagnées de certificats de transit sont soumises à Fengtaï (et d'autres endroits des environs de la capitale) à une taxe nouvelle. Cette taxe, quelle qu'en soit la dénomination, ne saurait être justifiable en vue des prescriptions claires des traités de commerce, conclus entre la Chine et les Puissances, établissant que toutes marchandises couvertes de passes de transit peuvent être dirigées à une destination quelconque en Chine sans être passibles de droits
ultérieurs.
De nombreuses plaintes étant parvenues aux représentants des diverses Puissances
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et le doyen du corps consulaire à Tien-tsin ayant protesté formellement contre l'abus susénoncé, j'ai l'honneur de m'adresser à votre Altesse Impériale, au nom de mes collègues, en la priant de vouloir bien provoquer les ordres nécessaires afin de supprimer toutes les mesures illégales qui pourraient entraver le commerce international transitant par Fengtai et ces autres endroits.
En priant votre Altesse de me faire tenir bientôt la réponse du Gouvernement Impérial de Chine, je saisis, &c.
(Translation.)
Enclosure 2 in No. 1.
Wai-wu Pu to Dean of Diplomatic Body.
Peking, December 11, 1909. WE are in receipt of your Excellency's official communication to the effect that in many cases recently a new tax has been levied on goods sent under transit
passes to different places in China other than Peking, on their passing through Fengtai and other places in the neighbourhood of Peking, which is not in accordance with the treaties. Numerous complaints have now reached the Ministers of the different Powers, and the senior consul in Tien-tsin having made a formal protest, the dean, in the name of all the Ministers, requests that the board may take note and devise means for the prohibition of this practice.
We find that the system under which taxes are levied at the Ch'ung-wen-men (Hatamen) customs station and its sub-stations is one of long standing, and that there are no signs of a new tax having been levied. Occasionally petitions have been made by merchants of different nationalities respecting this tax, and all the foreign Ministers resident in Peking have addressed us communications discussing the matter. Having gone thoroughly into the circumstances of each case our Ministry sent despatches to the yamên of the Hatamen Customs with instructions to investigate the matter and replies were sent to the respective Ministers.
As in duty bound we liave, &c.
Enclosure 3 in No. 1.
(Ministers of the Wai-wu Pu.)
Summary of Report of Commission on Peking Octroi.
1. The Hatamen Octroi.
BESIDES the well-known li-kin-levied at first in 1853 during the Taiping rebellion, and nominally being a kind of war tax at one-tenth per cent.-there is still another local import duty of old origin, the so-called “lo-ti-shui," or "bring-to-the-(market)- place tax," usually translated by "octroi." For the collection of this octroi in the capital, the reigning Manchu dynasty has erected in Peking the Chung-wen-men octroi station near the Hatamen. The two superintendents of this station, always appointed for one year's service, are Imperial princes or high Manchu or Mongol officials who obtain this position as a reward and an opportunity to fill their pockets. They are only bound to deliver a certain amount, fixed by the Board of Finance, to this board and the Imperial household, the surplus being their own profit. At present the Khorchin Duke Po-ti-su, general of the Bordered Blue Banner, and the Imperial clansman and president of the Board of Dependencies, Shou-chi, are the two superintendents.
The first octroi tariff dates from the 8th year of K'ang Hsi (1669). After several supplements and alterations, made in 1752, 1771, and 1780, this tariff was revised in deference to foreign goods in 1884, and later on replaced by a new one, sanctioned by Imperial rescript of the 31st January, 1902. As a rule Chinese merchants had to pay an octroi of 5 per cent. ad valorem, and foreigners 3 per cent.; besides, there were minutely enumerated special rates for many different kinds of goods. This distinction between Chinese and foreigners having grown very unpopular in Chinese circles, a new tariff was published on the 17th December, 1908, which made the octroi of 3 per cent. ad valorem the general rule. An English translation of the tariff is being prepared by
the octroi station.
[2827 d-3]
B 2
393