2
(a.) Duties may be paid in gold, in sycee, or in foreign coins.
(b.) If paid in gold, 1 gold pound remains, as at first, the equivalent of 3 Customs taels; fractions to be calculated accordingly.
(c.) If paid in sycee, 2,228 taels of Shanghae sycee are the equivalent of 1,000 Customs taels; fractions to be calculated accordingly.
(d.) If paid in foreign coins, then as much of them as will suffice to buy a proportionate quantity of Shanghae sycee equal to the Customs taels payable; fractions to be calculated accordingly.
In this way the figures of the existing Tariff will stand untouched, goods will pay according to the Customs tael and at its original rate, the Customs tael and the gold pound will stand in the same relation as before. Commencing thus with 1897, the rate for every subsequent year will be published six months in advance, so that all may know beforehand and inconvenience be avoided,
[This Document is the Property of Her Britannic Majesty's Government.] C.C
## CHINA TARIFFS
### CONFIDENTIAL
(No. 219.)
No. 1.
The Marquess of Salisbury to Sir C. MacDonald.
2051
[August 14.]
### SECTION 1+30
135
Sir,
Foreign Office, August 14, 1896. LI HUNG CHANG called on me this afternoon to discuss the Tariff question in China. His Excellency urged the course which had been recommended in a Memorandum left by him with me on the 4th instant, and of which a copy is forwarded to you, namely, the payment of the customs in gold instead of silver at the old gold rate. He informed me that his proposal had been approved in principle by Baron Marschall and M. Hanotaux, that Baron Marschall had made his consent subject to that of England, and that M. Hanotaux had made it subject to a reference to the French Minister at Pekin.
His Excellency pressed his solution of the difficulty very earnestly. I expressed the opinion that it would be inconvenient to have so uncertain a means of relieving the Chinese Treasury, and that a revision of the Tariff item by item would be a more expedient method of giving such fiscal relief to China as would be practicable and necessary. I admitted that probably some relief would be necessary, but I pointed out to him that some more efficient means must be devised of preventing British goods, which had paid 24 per cent. for li-kin, from paying that duty over again in the interior. I promised to refer this matter to my colleagues, and to consult persons familiar with the subject here, as well as the Chambers of Commerce at Shanghae and Hong Kong. The Ambassador urged very strongly that we should not consult those Chambers, because they were certain to oppose the scheme, and that we should not consult the Ministers at Pekin, because for the last ten years they had had a habit of forming themselves into a body to thwart the Government.
When I declined to come to any decision until I had consulted the necessary experts, his Excellency admitted that the revision of a Tariff must be considered at Pekin, but urged that the question of substituting a gold for a silver standard of value should be decided here.
I am, &c.
[1511 9-1]
(Signed)
SALISBURY.
2
(a.) Duties may be paid in gold, in sycee, or in foreign coins.
(b.) If paid in gold, 1 gold pound remains, as at first, the equivalent of 3 Customs taels; fractions to be calculated accordingly.
(c.) If paid in sycee, 2,228 taels of Shanghae sycee are the equivalent of 1,000 Customs taels; fractions to be calculated accordingly.
(d.) If paid in foreign coins, then as much of them as will suffice to buy a propor- tionate quantity of Shanghae sycec equal to the Customis taels payable; fractions to be calculated accordingly.
In this way the figures of the existing Tariff will stand untouched, goods will pay according to the Customs tael and at its original rate, the Customs tael and the gold pound will stand in the same relation as before. Commencing thus with 1897, the rate for every subsequent year will be published six months in advance, so that all may know beforehand and inconvenience be avoided,
[This Document is the Property of Her Britannic Majesty's Government.] C.C
CHINA TARIFFS.
CONFIDENTIAL.
(No. 219.)
No. 1.
The Marquess of Salisbury to Sir C. MacDonald.
2051
[August 14.]
SECTION 1.
+30
135
Sir,
Foreign Office, August 14, 1896. LI HUNG CHANG called on me this afternoon to discuss the Tariff question in China. His Excellency urged the course which had been recommended in a Memorandum left by him with me on the 4th instant, and of which a copy is forwarded to you, namely, He informed the payment of the customs in gold instead of silver at the old gold rate. me that his proposal had been approved in principle by Baron Marschall and M. Hanotaux, that Baron Marschall had made his consent subject to that of England, and that M. Hanotaux had made it subject to a reference to the French Minister at Pekin.
His Excellency pressed his solution of the difficulty very earnestly. I expressed the opinion that it would be inconvenient to have so uncertain a means of relieving the Chinese Treasury, and that a revision of the Tariff item by item would be a more expedient method of giving such fiscal relief to China as would be practicable and necessary. I admitted that probably some relief would be necessary, but I pointed out to him that some more efficient means must be devised of preventing British goods, which had paid 24 per cent. for li-kin, from paying that duty over again in the interior. I promised to refer this matter to my colleagues, and to consult persons familiar with the subject here, as well as the Chambers of Commerce at Shanghae and Hong Kong. The Ambassador urged very strongly that we should not consult those Chambers, because they were certain to oppose the scheme, and that we should not consult the Ministers at Pekin, because for the last ten years they had had a habit of forming themselves into a body to thwart the Government.
When I declined to come to any decision until I had consulted the necessary experts, his Excellency admitted that the revision of a Tariff must be considered at Pekin, but urged that the question of substituting a gold for a silver standard of value should be decided here.
I am, &c.
[1511 9-1]
(Signed)
SALISBURY.
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