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revision to secure some modification of the terms which were originally imposed upon them without any choice on their part.
I think, however, a simple enumeration of the concessions made on both sides will show that there is a large balance of advantage in favour of foreign nations and their commerce. I feel sure that many existing obstacles will be removed by their aid, and increased facilities afforded for its steady development.
The chief stipulations may be briefly summed up as follows:~~~
It has been agreed that all provinces in which there are Treaty ports shall be thrown open to foreign textile fabrics on condition that the payment of the half tariff transit duty shall be made simultaneously with the import duty and not left optional. Whether in foreign or native hands, in transit or going into consumption, they will, under this arrangement, be held exempt from all taxation whatsoever, from leking, and every other charge. No transit passes will be required for their protection-their foreign origin, easily ascertained, sufficing to establish immunity. In the other provinces they will have the protection as heretofore in transit to any point of destination designated by a transit certificate.
As regards native produce or merchandize for export to foreign countries, the transit certificate is to be dispensed with, and all inland duties will be paid by natives and foreigners alike without distinction. The several amounts of duties so levied being, however, entered by the officer levying the same at the different barriers or Custom-houses, on a blank form, to be supplied in advance to the mer- chant. The forms so filled are to be given up at the nearest barrier to the port of shipment, and on the owner or shipper applying for a permit of exportation to any foreign port, Hong Kong excepted, any excess over the half tariff duty paid will be refunded at once by the Customs. If less than the amount has been levied, the deficiency will in like manner be made up by the exporter.
In reference to these changes in the present system, some fears have been expressed that means will still be found of surcharging goods or produce entering into foreign trade. Such is the ingenuity and inveterate habit of Chinese officials, it is said, that no efficacious protection can be afforded by this or any other Treaty stipulation against such abuses. The half-Tariff duty will be scrupulously collected at the port of entry, and will be so much added to the exactions hitherto enforced.
I can only say that I myself believe the system now proposed will, in the main, be successful, and greatly check, if not entirely put an end to all such abuses. The Board of Trade, as you will have seen, approve it as perfectly equitable, and in accordance with what their Lordships believed to have been the intention of the stipulation to which they relate.
There is yet another argument in its favour not to be overlooked. By the present arrangements, as above described, the provincial authorities are given what they had not before, a direct interest in the whole of the foreign export trade, inas- much as they retain in their own hands whatever taxes they levy upon it in transit If the collective amount of these prove in excess of the half-tariff duty, the merchant is reimbursed out of the Imperial Customs.
Lastly, the argument of the faithlessness of Chinese authorities to their engagements, and their ingenuity in finding pretexts for extortion, or the arbitrary levy of taxes, if carried to its logical conclusion, would be equally valid against any system that could be devised; and should lead to the total abandonment of all effort to remove what is defective in the existing state of things, or any farther endeavour to relieve foreign trade from the greatest obstacle to its extension and prosperity. The absolute abolition, by Imperial decree, of all inland taxation would be just as valueless on this supposition; some of them would still be assumed to be likely to find means of evading the law and levying taxes.
Immunity from all inland taxation, but more especially the oppressive form it takes in leking duties, often levied within the ports as well as in transit, has long been felt to be the great, if not the only, desideratum in our trade with China. If this can be effected merely by making the payment of the transit commuted duty of 24 per cent at the time of importation, instead of a few days or weeks later, never was a great and material advantage gained at smaller cost. Even assuming the attainment of the end to be more problematic than I see reason to believe, what does the merchant risk? Paying a small transit duty at once, which, as a rule, is now paid within a few days or weeks after importation on the great bulk of foreign goods (since these, for the most part, go into the interior under transit certificates, which too often fail in securing the protection they are supposed to purchase), or paying what otherwise might be avoided for goods sold on the spot for local
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consumption. But, even in this latter case, the foreign merchants would still be largely the gainers if, by the system now contemplated, his goods are relieved from all liability to leking charges, often amounting at Amoy, not to 24 per cent. ad valorem, but to 20, 50, and even 90 per cent, largely enhancing the cost to the native, purchaser, and thus restricting, if not altogether arresting, the sale. To emancipate foreign trade from such an incubus as this, our foreign merchant would gladly risk a great deal more than 24 per cent.; and wisely, too, since such taxation as this must narrow the area of consumption, when it does not destroy the market altogether.
I believe, therefore, that the balance of advantage, viewed from the least favourable point, will still be found largely in favour of a trial; and this is, perhaps, as much as can be secured in the first instance by any Treaty stipula- tions with a country like China.
All other concessions are, comparatively speaking, unimportant, if this one .advantage can be secured, immunity from local and irresponsible taxation, and I think the arrangements now contemplated offer a fair hope of all foreign textile fabrics, which form the great bulk of the import trade being so emancipated.
Taken in connection with this, however, it was still desirable to facilitate access to inland markets, as well as the means of transport and accommodation for agents and their goods in the interior. This has accordingly been attempted under the following heads :---
1. By securing a right of navigating the inland waters, without limitation as to distance, in foreign-owned vessels of a Chinese type, under Custom-house licenses and regulations.
2. A right of renting, for short but undefined periods, either hotels or private houses, where they might dwell and store their merchandize, though not exhibit their hong name or the style of their firm.
The first of these gives a right of trading along the whole coast between the Treaty ports, under Custom-house licenses and regulations.
I consider that these two privileges, limited as they are, and far removed from steam navigation and right of permanent residence which the merchants demanded, make no inconsiderable advance in opening up the country. If British and other merchants will only act on what they allow quietly and judiciously, as do the Russian merchants in some of the tea districts, giving no trouble to the authorities, and exciting no alarm or hostile feeling among the people, they will have little cause to complain that the privileges fall far short of their wants.
3. The duty has been either entirely remitted or greatly reduced on watches, pepper, tin-plates, timber, coal, both foreign and native, and guano.
4. The right of re-exporting foreign grain has been conceded.
5. A steam-tug is to be placed on the Poyang Lake, for the purpose of towing British-owned vessels on the lake, and between it and Kiu-kiang. This is chiefly valuable, I conceive, as a step towards the general introduction of steam on the inland waters.
6. Bonded warehouses are to be established where they are desired by the majority of merchants.
7. A revised list of duty-free articles for personal consumption is to be made enlarging the scope of the existing rules.
8. Dock stores are to be admitted free.
9. Drawbacks for foreign goods re-exported in any current quarter to be paid in cash; and drawbacks to be given and received in payment of dues at any time within three years of importation.
10. Tea bonds at the river ports are to be provisionally discontinued, as an experiment.
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11. The amount of fine to be inflicted for a false manifest is fixed by Treaty at 500 taels. It is agreed that, in future, the amount shall be determined according to the special circumstances in each case, the maximum not exceeding 500 taels. discretionary power thus be given to the Consuls to levy any smaller amount which may be deemed adequate upon inquiry into the merits of each case, the present high rate often defeating the purpose in view, either by being far beyond the means of masters of small vessels to pay, or disproportioned to the offence in view of extenuating circumstances.
12. It is agreed that a Commercial Code shall be drawn up, for acceptance by all foreign Powers, based on European principles.
This I consider chiefly valuable as a first step, rather than for what it imme-
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