28
His Excellency, no reflection upon your own good judgment, when they say that no engagements in respect to commerce of any description made by Li Hung-chang, or by the Chinese Minister, or by any other mouthpiece of the Chinese Government, should be relied upon unless performance is capable of enforcement.
With this comment upon the situation, the Committee thank you for having invited their opinion, and for the excellent memorandum prepared by you; and venture to express the hope that China's request for a higher scale of duties will afford Her Majesty's Government the long-desired opportunity to revise, and place upon a substantial basis of common interest, commercial relations between China and Great Britain.
Since writing the above, the following telegram has been received [from you]:-
"It should be distinctly understood the question is not consolidating but increase; total probably 7 per cent. import beside 24 per cent. transit. With reference to the foregoing, wire your Committee's opinion."
Having consulted the Committee, I at once replied direct, as follows:-
"Exact percentage immaterial provided not prohibitory. Consolidation essential: one duty cover entire Empire.”
It is not necessary to make any comment on this message, the matter having been so fully treated in this letter; but I repeat that, in the judgment of the Shanghai Committee, one duty to cover everything should alone be charged.
R. S. Gundry, Esq.,
SIB,
Hon. Secretary, London.
(Signed)
W. H. TALBOT,
Hon. Secretary.
Hongkong Committee to General Committee.
Hongkong, 18th August, 1896.
Herein I beg to hand copy of telegram despatched on 8th inst, the original of which it is hoped reached you in due course. Taken in connection with previous correspondence, and read in the light of your complete knowledge of the question in all its bearings, the message will, no doubt, have made sufficiently clear to you the opinions entertained by this Committee with regard to the reported intention of the Chinese Government to endeavour to obtain the sanction of the Treaty Powers to an increase of duties on foreign goods imported into China.
Some slight doubt exists as to the exact increase that is likely to be asked, and whether such increase, if allowed, will be applied pro rata to both import and transit duties; but, as indicated in the above telegram, the pending increase, if reasonable, is of minor importance
29
compared with the much more vital question as to how it is to be applied so as to ensure to the Provincial Authorities an equitable division.
While willing to favour a reasonable increase, if properly apportioned, the Committee cannot too strongly deprecate a higher scale of duties being sanctioned by Her Majesty's Ministers, unless it is distinctly understood that at least a part of the increase will be specially and directly applied to completely freeing goods from all inland taxation, whether in the form of transit dues while passing through the country, or localised squeezing of any kind at the final destination and place of sale, however remote.
If the increased revenue is merely applied to repleting the Imperial coffers, and not duly apportioned among the Provincial Officials, the position will remain unchanged and, as stated in the telegram, exactions and evasions of the treaty will continue as at present.
Assuming that the Treaty Powers will be found willing to accede, in some measure at least, to the demands of the Chinese, the Committee consider that to sanction even a material increase on the present tariff rates, which are not excessive, would not be too high a price to pay for the unrestricted distribution of goods throughout the Empire, if that privilege could be secured.
How far China would be willing, and, if willing, capable of carrying out such an arrangement is open to serious doubt; but to insure that at least an honest attempt would be made to fulfil the contract, no doubt some material guarantee would be suggested, and, as in the case of the Opium Convention, provision would be made that if, on trial, the arrangement proved unworkable, it could at any time be abrogated.
Exception might perhaps be taken to the proposed re-adjustment of duties on the ground that, while China would reap the benefit in the form of a large and immediate increase of revenue derived from higher duties on the entire import of foreign goods, all the importer could hope for from the change would be that the somewhat problematical successful carrying out of an improved Transit Pass system might, in time, largely stimulate the consumption of English manufactures. If, however, the higher duties are sanctioned, it will be an admission on the part of the Treaty Powers that China is justified in her demands; and remonstrance from this side, which the Committee have already indicated does not appear to be necessary unless the proposed changes are made more radical than is at present anticipated, would probably arrive too late to be in any degree effective.
The breaking up of original packages (which could be carried out under Customs supervision) for the purpose of re-packing in forms more suitable for interior transit, and similar other details, might appropriately be held over for adjustment in China.
R. S. Gundry, Esq.
Hon. Secretary, London.
(Signed)
F. HENDERSON,
Hon. Secretary.
153
28
His Excellency, no reflection upon your own good judgment, when they say that no engage. ments in respect to commerce of any description made by Li Hung-chang, or by the Chinese Minister, or by any other mouthpiece of the Chinese Government, should be relied upon unless performance is capable of enforcement.
With this comment upon the situation, the Committee thank you for having invited their opinion, and for the excellent memoranduin prepared by you; and venture to express the hope that China's request for a higher scale of duties will afford Her Majesty's Government the long-desired opportunity to revise, and place upon a substantial basis of common interest, commercial relations between China and Great Britain.
Since writing the above, the following telegram has been received (from you]:-
-
"It should be distinctly understood the question is not consolidating but increase; total probably 7 per cent. import beside 24 per cent. transit. With reference to the foregoing, wire your Committee's opinion."
Having consulted the Committee, I at once replied direct, as follows:-
"Exact percentage immaterial provided not prohibitory. Consolidation essential: one duty cover entire Empire.”
It is not necessary to make any comment on this message, the matter having been so fully treated in this letter; but I repeat that, in the judgment of the Shanghai Committee, one duty to cover everything should alone be charged.
R. S. Gundry, Esq.,
SIB,
Hon. Secretary, London.
(Signed)
W. H. TALBOT,
Hon. Secretary.
Hongkong Committee to General Committee.
Hongkong, 18th August, 1896.
Herein I beg to hand copy of telegram despatched on 8th inst, the original of which it is hoped reached you in due course. Taken in connection with previous correspondence, and read in the light of your complete knowledge of the question in all its bearings, the message will, no doubt, have made sufficiently clear to you the opinions entertained by this Committee with regard to the reported intention of the Chinese Government to endeavour to obtain the sanction of the Treaty Powers to an increase of duties on foreign goods imported into China.
Some slight doubt exists as to the exact increase that is likely to be asked, and whether such increase, if allowed, will be applied pro rata to both import and transit duties; but, as indicated in the above telegram, the pending increase, if reasonable, is of minor importance
29
compared with the much more vital question as to how it is to be applied so as to ensure to the Provincial Authorities an equitable division.
While willing to favour a reasonable increase, if properly apportioned, the Committee cannot too strongly deprecate a higher scale of duties being sanctioned by Her Majesty's Ministers, unless it is distinctly understood that at least a part of the increase will be specially and directly applied to completely freeing goods from all inland taxation, whether in the form of transit dues while passing through the country, or localised squeezing of any kind at the final destination and place of sale, however remote.
If the increased revenue is merely applied to repleting the Imperial coffers, and not duly apportioned among the Provincial Officials, the position will remain unchanged and, as stated in the telegram, exactions and evasions of the treaty will continue as at present.
Assuming that the Treaty Powers will be found willing to accede, in some measure at least,
to the demands of the Chinese, the Committee consider that to sanction even a material increase on the present tariff rates, which are not excessive, would not be too high a price to pay for the unrestricted distribution of goods throughout the Empire, if that privilege could be secured.
How far China would be willing, and, if willing, capable of carrying out such an arrange- ment is open to serious doubt; but to insure that at least an honest attempt would be made to fulfil the contract, no doubt some material guarantee would be suggested, and, as in the case of the Opium Convention, provision would be made that if, on trial, the arrangement proved unworkable, it could at any time he abrogated.
Exception might perhaps be taken to the proposed re-adjustment of duties on the ground that, while China would reap the benefit in the form of a large and immediate increase of revenue derived from higher duties on the entire import of foreign goods, all the importer could hope for from the change would be that the somewhat problematical successful carrying out of an improved Transit Pass system might, in time, largely stimulate the consumption of English manufactures. If, however, the higher duties are sanctioned, it will be an admission on the part of the Treaty Powers that China is justified in her demands; and remonstrance from this side, which the Committee have already indicated does not appear to be necessary unless the proposed changes are made more radical than is at present anticipated, would probably arrive too late to be in any degree effective.
The breaking up of original packages (which could be carried ont under Customs supervision) for the purpose of re-packing in forms more suitable for interior transit, and similar other details, might appropriately be held over for adjustment in China.
R. 8. Gundry, Esq.
Hon. Secretary, Loudon.
(Signed)
F. HENDERSON,
Hon. Secretary.
153
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