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nature of a transit duty, such as all native customs
duties, tung-chuan, tung-shui, huo-wu-shui, railway
huo-chuan, parcel post likin, transit dues in lieu of likin, coast-trade duty, duty on goods from one Chinese
port to another, Lo-Ti-shui, and all principal and
miscellaneous levies which are in the nature of tax on
÷
goods in transit. Instead a new "national import tariff“, with duties ranging from 7% to 57% ad valorem, is to be put into force and excise duty is to be imposed on all goods manufactured in the factories located within the
territories of the Republic of China.
3.
Early in July last, when I first heard of
these proposals, I consulted both the Honourable Mr. D.G.M.
Bernard, Chairman of the Hong Kong General Chamber of Commerce, and Colonel F. Hayley Bell as to the probable effect on Hong Kong trade of the Nanking Government's
scheme.
4.
f
Mr. Bernard replied on the 11th July:-
"The effect just now on Hong Kong is entirely dependent
on the attitude of the Chinese in the ports affected.
they desire to resist the taxes, they will no doubt curtail
their business. But I have no information yet as to what
action, if any, merchants propose to take. Past
experience does not lead one to think that the Foreign
Powers will do anything except perhaps record a protest.
If the increased taxes go through without trouble, I do
not anticipate any great effect on Hong Kong trade at the
present time" In a postscript Mr. Bernard added: "I
understand refined sugar is in the luxury class, but I
am not sure how this is going to be taxed. A high duty
on