CO129-235 - Public Offices - 1887 — Page 437

one of the numerous bands of pirates who infest the neighbourhood, and several lives were unfortunately lost.

This accident delayed the work of the Commission, and at one time matters assumed a somewhat serious aspect, as the French had occupied militarily the territory in the neighbourhood of Cape Paklung, and it was known that the Chinese Government had ordered up reinforcements, the territory held by the French being regarded as having always belonged to China. I inclose a sketch of the locality, with explanatory notes, showing the respective claims to the several boundary-lines immediately after the occu- pation of the Paklung territory by the French.

This occupation has do doubt materially aided M. Constans in the definitive arrange- ments for the revision of the Cogordan Convention, as the Chinese Government made no secret of the great importance they attached to the retention by China of the disputed territory. They were evidently willing to make some further sacrifices to attain this object, although not disposed to grant all the concessions said to have been demanded by M. Constans.

He is believed to have required---

1. That there should be a further reduction of the import and export duties over the frontier, which, as your Lordship is aware, were diminished respectively by one-fifth and one-third of similar duties at the Treaty Ports in accordance with the provisions of Articles VI and VII of the Convention of the 25th April. It is reported that a reduction to one-half of the Maritime Tariff rates was asked for in the case of both imports and exports.

2. That native opium should be permitted to come into Tonquin through the Provinces of Yunnan, Kwang-si, and Kwang-tung, Article XIV of the Convention having prohibited its importation.

3. That salt should be allowed to be exported into China from Tonquin, salt being a monopoly of the Chinese Government.

4. That China would not insist on the right to appoint Consuls in the principal towns of Tonquin, granted by the Vth Article of the Treaty of the 9th June, 1885.

5. That Chinese goods purchased in China by French or French-protected subjects, and reimported into China from Tonquin by one of the Treaty ports, should be charged coasting trade duty only instead of being treated as goods coming from a foreign country and therefore subject to the payment of full import duty according to the Maritime Tariff, as provided for by the three last paragraphs of Article IX of the Convention of the 25th April. The coasting trade duty is 24 per cent, ad valorem.

Whether the above list contains a perfectly accurate statement of the demands put forward by M. Constans I am unable to say, but I have no reason to think it is otherwise than accurate, although from the secrecy with which the negotiations have been con- ducted, it has not been easy to ascertain how matters were progressing.

I have, however, now been placed confidentially in possession of a copy of the document in which are recorded the results of M. Constans' negotiations, and I telegraphed its contents to your Lordship to-day. The document itself I have now the honour of inclosing. It takes the form of an Additional Convention, was signed or the 26th ultimo, and has been ratified by the Emperor of China. There are ter Articles :-

Article I provides that the previous Convention of the 25th April shall be faithfully executed in all its details save where they may have been modified by the late Convention.

Article Il specifies the places in China which, in virtue of the Ist Article of th Convention of the 25th April, are to be opened to French trade. They are three i number: Lungchow, in the Province of Kwang-si; Mongtsze and Manhao, in Yünnan. I understand that the selection of these inland marts gave rise to much controversy The Chinese Government had offered M. Constans two places only just across the frontier but the French Plenipotentiary rejected them as valueless. In choosing and obtainin the towns of Lungchow and Mongtsze, M. Constans has gained a considerable advantage The former is connected with Langson and Caobang by two rivers. (Song-ki and Cac bang) which are supposed to join the Canton River; but I have not been able to verif this fact from any of the Maps I have had an opportunity of consulting. Mongtsze o the other hand is reported to be situated in a mining district. The French will have th privilege of appointing Consuls at the three above-mentioned towns, and the Chines custom-houses there are to be administered by officers belonging to the foreig Customs Inspectorate.

Article III refers to the further reduction conceded to France in the fronti import and export duties.

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By the VIth and VIIth Articles of the Convention of the 25th April, goods passing into China from Tonquin were to pay the Treaty port rates, less a fifth while goods coming from China into Tonquin were to be charged a third less. In the first instance, the reduction is now to be three-tenths, and in the second, four-tenths of the Maritime Tariff duties.

Article IV authorizes the imposition of an export duty on Chinese products which have paid an import duty on their entry into Tonquin, and have passed through Tonquin to an Annamite port for conveyance to a country other than China.

The export duty to be paid will be that fixed by the Franco-Annamite Customs Tariff.

By the XIth Article of the Convention of the 25th April, such goods were to be exempt from any export duty.

Article V permits the import into Tonquin through the three Chinese frontier towns opened to French commerce of native opium on payment to the Chinese Government of an export duty of 40 taels per picul, i.e., 20 taels in the shape of customas duty, and 20 taels by way of li-kin. Should, however, this opium be reimported into China, whether by sea or land, it would be treated as foreign opium, and pay the 110 taels per picul (duty and li-kin) leviable under the Additional Article of the Chefoo Agreement.

Article VI permits French and Annamite vessels, with the exception of vessels of war, or those carrying troops and munitions, to go between Langson and Caobang by the Rivers Song-ki and Caobang, which connect Lung-chow with Langson and Caobang.

A tonnage due is to be charged for each trip, at the rate of one-twentieth of a tael per ton, but the goods carried are not to be subjected to duty.

These two rivers are those to which I have already alluded as being supposed to join the Canton River.

On a small Map of Tonquin prepared by the Intelligence Branch of the War Department in July 1883, these two rivers are marked, as well as the towns of Langson and Coabang, and two out of the three Chinese towns opened to French commerce. Lung-chow, however, does not appear, at least under that name.

The accompanying extract from the "Revue Internationale" of the 9th October last, headed "La Délimitation du Tonkin," refers to Luug-chow and the river Song-ki, and to the possibility of reaching the sea from Lung-chow by the Canton River.

Article VII contains a most-favoured-nation clanse of a decidedly more comprehensive kind than is to be found in the concluding paragraph of the VIIth Article of the Convention of the 25th April.

France is to have the full right of enjoying, without further negotiations, all privileges, immunities, and commercial advantages which may hereafter be granted by Treaties having for their object the settlement of political and commercial relations between China and countries situated to the south and south-west of the Chinese Empire.

It is unnecessary of course to say that this Article has reference to Burmah and other British possessions.

Article VIII records the fact of the French and Chinese Plenipotentiaries having signed and scaled the French and Chinese texts of the Convention.

Article IX puts in force the stipulations of the Additional Convention from the date on which the ratifications thereof and of the Convention of the 26th April shall have been exchanged, precisely as if those stipulations had been inserted in the earlier Convention.

Article X states that the Additional Convention shall be ratified at once by the Emperor of China, and that as soon as it shall have been ratified by the President of the French Republic, the ratifications shall be exchanged at Peking.

An Annex to the Convention explains that by a note dated the 23rd June last the Chinese Government engages not to claim the right granted by the Vth Article of the Treaty of the 9th June, 1885, of appointing Consuls in the principal towns of Tonquin, until she and France are of opinion that circumstances will admit of the appointments. It is, however, further provided in a note that whenever Chinese Consuls shall be appointed at Hanoi and Haiphong (Article II of the Convention of the 26th April, 1886) France shall have the right to appoint Consuls at the capitals of the Provinces of Yünnan and Kwang-si.

The terms of this Additional Convention are unquestionably more favourable than those in the preceding Convention of the 25th April, to which they relate; but I am not disposed to think that until the French Protectorate of Tonquin and Annam shall have

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