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press
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should naturally expect redress. He deemed it undesirable to further, or to give the impression that he was throwing impediments in the way of the negotiations (22nd May, 1885).
On the 23rd May, 1885, Lord Granville addressed a despatch to Mr. O'Conor, drawing his attention to the most-favoured-nation article of the British Treaty of Tien-tsin of 1858. His Lordship stated that, although existing treaties had reference only to trade by sea with certain specified ports, and gave this country no rights of trade across the land frontiers of China, our treaty, nevertheless, guaranteed equal participation in all privileges, &c., which might be granted to any other nation. If, therefore, the above-mentioned treaty between France and China admitted French goods into China by land at a lower duty than was paid by the same British goods when introduced by sea, or would confer on French citizens or commerce greater privileges than were enjoyed by British subjects, Her Majesty's Government would claim most-favoured-nation treatment under the treaty of 1858.
The Board of Trade on the 5th August, 1885, commented on the Franco-Chinese Treaty, pointing out that the privilege granted to Fronch citizens of crossing the frontier could not be extended to British subjects unless British consuls could be appointed with a view to the issue of the necessary passports, and remarking that the intention of the treaty was to establish inequality, and that its provisions were incon- sistent with the British treaties with China. They suggested that Mr. O'Conor's attention should be drawn to articles 4 and 6 (above quoted), and at the same time they concurred in the instructions given to him on the 23rd May already alluded to.
The Hong Kong Chamber of Commerce expressed the opinion that the right to appoint consuls in Yunnan and Kwangsi granted by the treaty could be claimed by Powers having most-favoured-nation clauses in their treaties with China, but that the differential duties would hardly become applicable under those clauses unless the Chinese opened up the water communication of Kwantung into Western China, when directly conveyed merchandise should become subject to no greater duty than was borne by goods crossing the frontier by land (Colonial Office, 31st August, 1885).
The Government of India were of opinion that the commercial privileges conceded to the French would act prejudicially upon the development of the trade with Yunnan via Bhamo and the Irrawaddy River, which would be diverted from that river to the Red River route; but, at the same time, the chief obstacle lay in the interposition of the independent Kingdom of Burmah between British Burmah and Yunnan, and the then pending arrangements might tend to remove the disadvantage, when the conse- quences of the French treaty might not prove so serious as was anticipated (India Office, 3rd February, 1886).
On the 26th April, 1986, a commercial convention, in pursuance of _article 6 of the treaty of peace, &c., of the 9th June, 1885, was concluded between France and China.
It did not specify the spots where the frontier trade should be carried on because the frontier was not then settled, but it declared what duties should be levied on the merchandise crossing the frontier.
These were-
For the import transit trade (in accordance with existing regulations at the treaty ports) on payment of half the maritime tariff duty.
Import Duties.-One-fifth less than the maritime tariff. In the case of goods not enumerated in the tariff, 5 per cent. ad valorem (as in the treaty ports (article 6) ).
Export Transit Duties.-The same as on goods exported from the maritime ports.
Export Duty from the Frontier Ports.-Two-thirds of the maritime export duty. Most-favoured-nation treatment was also accorded to France in case of a frontier trade convention being concluded between China and England for the Burmah frontier (article 7).
The right of France to impose a protective tariff on imports crossing the frontier into Tonquin was recognised (article 9).
Article 3 of the convention gave to the French and Annamese at the frontier ports the same privileges as in articles 8, 9, 11, and 12 of the French treaty with China
of 1858.
These had reference to passports, houses, burial grounds, employment of interpreters, teaching foreign languages, sale and purchase of books, inviolability of property of French citizens, prohibition of embargoes on French vessels, &c.
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On M. Constans afterwards proceeding to China as French Minister, this convention was revised, and an additional convention was signed on the 26th June, 1887, modifying its terms.
It specified the places open to French trade in the provinces of Kwang-si and Yunnan (article 2).
Goods passing from Tonquin
The import and export duties were further reduced.
to China were to pay three-tenths less than treaty port rates and goods from China to Tonquin four-tenths less than at treaty ports (article 3).
An export duty was authorised on Chinese goods which had paid an import duty on entering Tonquin, and had passed through Tonquin for conveyance to a third country (article 4).
The most-favoured-nation clause was extended so as to govern future political and commercial relations between China and the countries situated to the south and south-west of the Chinese Empire (article 7).
While the negotiation of this additional convention was in progress, Sir J. Walsham intimated that, in the event of advantages being given thereby to Trance over other countries, he should take steps to protect British interests and treaty privileges, to which the Chinese Government replied that the existing treaties referred solely to the ports and could not be made available in connection with overland intercourse (Conf 5789, p. 9).
After communication with the India Office, Lord Salisbury instructed Sir J. Walsham to protest against this limitation of the scope of the most-favoured-nation articles of our treaties with China (28th June, 1888).
Lord Salisbury further observed that it would be useless to press for a reduction of the tariff at the ports corresponding with that granted to the French frontier trade, and that it would be better policy to take advantage of it in order to obtain concessions in regard to Burmah. Sir J. Walsham was accordingly instructed to inform the Chinese Government that the question of treaty rights at the ports would not be further pressed if they would give a written statement that they accepted the explicit reservation of the right of this country to most-favoured-nation treatment elsewhere than in Burmah as a basis for the abstention of His Majesty's Government from raising the question of their rights in the present instance, and further agreeing that in the commercial arrangements respecting Burmah they would give to this country similar advantages and an identical most-favoured-nation clause which should apply to the French convention.
They should also, his Lordship added, agree that such facilities would be granted for the navigation of the Canton River and other waterways of Southern China as would place British trade on fairly equal terms with the trade opened to France across the frontier of Tonquin. (To Sir J. Walsham, 28th June, 1888.)
Sir J. Walsham does not appear to have reported whether he obtained this assurance from the Chinese Government.
In the meantime, however, a convention was signed between this country and China on the 24th July, 1886, relating to Burmah and Thibet, in which it was stipulated (article 3) that the conditions of the frontier trade between Burmah and China were to be settled by a frontier trade convention, both countries agreeing to protect and encourage trade between China and Burmah.
It was not until the 1st March, 1894, that a convention was concluded between Great Britain and China to give effect to this stipulation.
Article 8 of this convention laid down that, "subject to the conditions mentioned hereafter in articles 10 and 11 (relating to prohibited goods, munitions of war, opium, spirituous liquors, &c.), the British Government, wishing to encourage and develop the land trade of China with Burmah as much as possible, consent for a period of six years from the ratification of the present convention to allow Chinese produce and manufactures, with the exception of salt, to enter Burmah by land duty free, and to allow British manufactures and Burmese produce, with the exception of rice, to be exported to China by land free of duty."
Article 9 of this convention laid down that "goods imported from Burmah into China or exported from China into Burmah shall be permitted to cross the frontier by Manwyne and by Sansi," and that "the Chinese Government consent that for six years from the ratification of the present convention the duties levied on goods imported into China by these routes shall be those specified in the general tariff of the Maritime Customs diminished by three-tenths, and that the duties on goods exported from China by the same routes shall be those specified in the same tariff diminished by Jour-tenths."
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