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PUBLIC RECORD OFFICE, LONDON

1st. The Nei-ti-Shin (export).

2nd. The Nee-li-Shin (import).

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3rd. The Sino-hao. An undefined exaction, admitted to vary greatly, presumably at the discretion of the Collector, and doubtless is the cover under which squeezing or official robbery is carried on; and

4th. Foreign Treaty Tariff duty.

The history of these duties, as given in the despatch, is peculiar, but instructive.

In the first place, what was right was levied the Nei-ti-Shin on goods at the port of departure, and the Nei-li-Shin on goods at the port of arrival.

The growth of Hong Kong, however, appears to have raised the cupidity of the Hoppo, and induced him to try and collect an Imperial revenue from its trade. Trouble ensued from the attempt, but in effect the agitation and discussion raised would seem to have only brought the Colony under further exactions, for to previous levies was added the import and export duty according to the Tariff of the Tien-tsin Treaty.

The only duties we conceive the Chinese to be entitled to are the universal ones called Nei-ti-Shin and Nee-li-Shin, which should be collected at port of departure as regards exports, and of arrival as regards imports. The other duties we believe to be unwarrantable and injurious exactions, conceived and levied in a hostile spirit to the Colony. The Chinese desire to treat, and practically do treat, the Colony, as regards duties, as a portion of the Chinese Empire, and in addition to ordinary exactions, levy duties, import and export, as if it were one of the Treaty ports, and the trade carried on by foreigners and in foreign vessels.

We may here incidentally mention that we observe with much satisfaction that Lord Carnarvon is of opinion that the Chinese have no right to levy these import and export duties on the trade of the Colony.

The regulations alluded to by Her Britannic Majesty's Consul as applicable to produce exported from any port in the four lower Prefectures of the Province require investigation. They may have recently been made with a view of meeting the Hong Kong and Macao difficulty, and, indeed, the words used by Sir B. Robertson to describe them make this appear probable.

We are certainly of opinion that in practice the regulations are special and intended for Hong Kong, and are not applied to Junks trading with Japan, the Loochoos, the Phillipine Islands, Borneo, the Straits Settlements. Siam, Cambodgia, Saigon, Tonquin, and Annam, to the majority of which places, indeed, Junks do not now ordinarily go.

But supposing all the squeezing that takes place to be legitimate, what is to be said of the manner in which the various collections are made and of the attitude of the Chinese authorities vis-à-vis Hong Kong?

We believe the action taken to be designedly hostile, and that it is most injurious. That the Colony continues to prosper, notwithstanding the difficulties which surround its trade, indicates, we conceive, what would be the volume of its progress and development were its natural advantages of position and facilities offered to trade allowed their due influence.

The seizures that are constantly made and the terror inspired by the lawless acts of swarms of petty collectors of ill-defined and miscellaneous duties have on former occasions been loudly exclaimed against and condemned, but no change for the better has taken place. It has been frequently and abundantly proved that the blockade is a serious evil, a great hindrance to the trade of the Colony, unjust, and in its effects demoralizing; and the papers which have been submitted to us addressed to his Excellency by the Chief Justice, the Acting Attorney-General, and the Junior Magistrate on the system adopted by the English officers of the Hoppo of Canton, show that Chinese of the lowest class are employed as informers, received into the service, and educated to prey upon the people as false accusers and extortioners.

The Consul states in his despatch of 18th January that the three propositions made known by the Excellency the Governor in Council on the 7th January are not practicable. The first he states to be an impossible scheme, because there are three Departments having authority to collect duties, and to have all cruizers under one head would apparently clash with their separate independence.

The second proposition finds no favour, because, were a clear understanding arrived at as to the regulations, and were the Tariff published, it might prevent the practice of varying the amount levied, and only give rise to fresh complications with the Colonial authorities.

The third proposition, from Sir Brooke Robertson's experience of joint investigations, "would not work.' The statements thus gravely made we would rather not comment on, they are of so extraordinary a character; but we desire to point out that despatches

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addressed to the Consul at Canton, and interviews between him and the Chinese officials have had no satisfactory results, the evils of the blockade continued unchecked, and that we consider other measures must be adopted before redress is obtained, and interference with the trade of the Colony abandoned.

If the three propositions are not at once acceded to we would recommend that imme- diate notice be given to the cruizers that they are not to be allowed to enter Colonial waters, and that their spies and informers when found in the Colony will be punished; and, further, that Sir Charles Elliot's Proclamation of 7th June, 1841, when the island became "a British Possession," be brought to the notice of the Chinese, and if necessary promptly acted upon.

Sir,

Hong Kong, June 29, 1876.

Inclosure 2 in No. 24.

(Signed)

P. RYRIE. H. LOWCOCK.

W. KESWICK.

Registrar-General's Office, Victoria, Hong Kong, October 31, 1874.

I HAVE the honour to submit, for the information of his Excellency the Acting Governor, a Memorandum on the Chinese methods of collecting revenue on goods shipped from Hong Kong and Macao in Chinese vessels to the West Coast,

I have got the greater part of the information therein contained from personal conference with Mr. Ho-a-Sik of the Kin Nam Hong in this Colony, and from several of his customers from the West Coast.

It has taken a good deal of time to extract it; but I think it may be relied upon as

correct.

In reference to the five junks detained at Shui Tung, Ho Unke and the other owners request the good offices of this Government with the Chinese authorities to urge upon them the equity of their immediate release, and I beg to suggest that the Chinese be asked to make those men compensation for the loss they have already sustained by the illegal detention of their junks and cargo, and to prevent such illegal seizures in the future. A letter from Ko Chan, received by one of the shippers last night, and dated the 24th instant, states that the Prefect of that Department had ordered the payment of the duties. there, or he would confiscate both ships and cargo.

The Hon. Cecil E. Smith,

Acting Colonial Secretary.

I have, &c.

(Signed) J. RUSSELL, Acting Registrar-General.

Inclosure 3 in No. 24.

Memorandum on the Chinese methods of levying Taxes on Goods shipped from Hong Kong and Macao to the West Coast in Native Bottoms.

ON the 20th September last a joint Proclamation by the Viceroy of the Two Kwangs and the Hoppo was issued, pointing out to traders the proper means of paying taxes; and, with special reference to goods sent from Hong Kong in native craft to other places than Canton and Hong Mun, all shippers are ordered to repair to one or other of the Le-kin Customs Stations at Cheung Chan and Fat Fau Chau Stations situated at the western and eastern entrances of the Hong Kong Harbour, and report the names of their junks, and the nature and quantity of their cargo.

2. These stations are empowered to collect taxes on behalf of the Central Custome, and shippers are required to pay the regular duty, and obtain a receipt, the exhibition of which will be sufficient to enable them to pass the various revenue cruizers.

Having paid that duty, they are bound, nevertheless, to pay half as much again on arrival at their port of destination; and, ostensibly for the convenience of shippers, the Viceroy and Hoppo give them the option of paying their composite sum at the above named stations, in which case a general permit is granted, called "a grand chop," and which guarantees to the holders an exemption from all further taxations at the ports of entry, at the barrier forts, or elsewhere.

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