157
disastrous effect on the Filature Industry in China, with corresponding advantage to the production of those countries with which China now competes; and if it is intended to exempt native Filatures worked by hand or such-like means it would not only be inequitable, but it would possibly lead to the stoppage of Filatures worked by machinery: it would put back China in that respect to a period of 20 years ago, and throw out of employment not less than 25,000 natives who now derive a living and support for their families from those factories,
The native Government appears to imagine that China's production of Silk controls prices on foreign markets; on the contrary, foreign markets regulate the price which foreign merchants in China can afford to pay for Chinese Cocoons.
It may interest Your Excellency to know that the Likin and Loti Shui tax which the 10 per cent. is to supplement, already amount to an average of about 9 per cent., so China proposes to penalise the improved Silk product by no less than 19 per cent.
The Chamber does not of course contemplate that such an injustice would be permitted as to charge the additional Duty on silk reeled from Cocoons bought this season without a hint of the step now proposed. Your Excellency is possibly unaware that the exigencies of the trade necessitate the purchase of the entire annual requirements of Cocoons for the Filature Factories in May and June, when the market for Cocoons usually opens and lasts but two or three weeks; and that, consequently, this season's purchases have already been effected at prices which would obviously never have been paid had the proposed additional taxation been contemplated!
The Chamber, relying on your Excellency's sense of justice, call attention to the subject and beg that as Doyen of the Corps Diplomatique you will move your colleagues to inform the Tsungli Yamên that the proposals of their memorial will not be assented to by the Foreign Powers.
E. F. ALFORD, Chairman.
To His Excellency Colonel Denby,
(Signed)
Minister for the U.S. of America,
Doyen, Corps Diplomatique, Peking.
TRANSLATION OF MEMORIAL FROM THE TSUNGLI YAMEN.
Your servants, the Ministers of the Tsungli Yamên, on their knees present a Memorial with regard to the settlement of the tariff on manufactured goods, in order to maintain due regard for the public revenue and to secure substantial profit. Prostrate, they pray for the sacred glance on the memorial which they have reverently prepared.
We would observe with regard to the manufacture of goods by machinery at the various Treaty Ports, as for instance the cotton manufacture and silk filature in the South, and the manufacture of grape wine in the North, that on several occasions the Superintendents of Trade for the Northern and Southern Ports have memorialised requesting that such produce shall only pay the export duty, or they have requested that both Customs Duty and Likin be remitted for some years, the intention being to benefit the people at the expense of the Government in the hope of giving an impetus to trade. At that time there was no express stipulation regarding the manufacture of goods by foreign merchants, and it was deemed advisable to act in accordance with the exigencies of affairs. After the conclusion of the Treaty of Shimonoseki, foreign merchants of all nationalities were empowered to manufacture native produce. As former Treaties do not provide for this contingency, it is imperative to devise some equitable mode of action calculated to arrest the drain on the country's resources, and to deprive (foreigners) of a pretext (i.e., for demanding the abatement or abolition of duties) at the present moment. Japanese merchants are buying land in Shanghai for the erection of factories, and the merchants of other nationalities are also establishing factories in great numbers. Thus, in the twinkling of an eye, steam factories are established at the Treaty Ports as thick as trees, and commodities of all kinds overflow. Those who enjoy the advantages accruing from these manufactures should also incur the responsibility of paying duties. In the case of a new undertaking like this, it is very necessary to settle uniform tariff regulations without making distinctions in virtue of which some pay heavier and others lighter duties; so that it may be easy for all to conform therewith. We find that foreign merchants importing foreign produce pay, in the majority of cases, an import duty of 5 per cent. On sending the goods into the interior, a further Transit Duty of Ts. 2. 5 mace is charged. Foreign merchants purchasing native produce in the interior under Transit Pass pay, in addition to the export duty, the half or Transit Duty, after which they are at liberty to export the goods. Foreign merchants carrying produce for sale, whether for import or export, pay no further duties beyond the Customs Duty and the Transit Duty; but native produce which has not yet reached the foreign consignee, and foreign produce which has been delivered to the native purchaser, must both pay Likin to supply the deficiencies in the Revenue. Moreover, where goods are manufactured by machinery (in China) lighterage, freight, insurance, and coolie hire are all saved, less capital is required and profits are abundant. Your memorialists having deliberated together would suggest that, leaving the Viceroys and Governors of the various provinces to fix the amount of the loti shui and Likin due on native produce at the place of production; manufactured produce, whether Chinese or foreign, should, before it leaves the place of manufacture, pay double the duty of five per cent. prescribed in the case of foreign exports, so as to supplement the Likin payable in the interior. This amounts to a duty of 10 per cent. Hereafter, whatever be their destination, all goods will be exempt from Likin; the gain in duties balancing the loss in Likin, so that the public revenue will remain at its present figure. At the present funds are unusually scarce, and liabilities multifarious. This is not an extravagant project to "mend the fold when the sheep has gone," but the intention is to make use of the guest (foreigner) in order to establish the host (China). The native merchant eats the produce and dwells on the soil of China and should know how difficult it is for the Government to devise expedients. The goods of the foreign merchant find a ready market, and it is only right to have in view the same treatment for all.
Furthermore-The following representation has reached the Yamen of your memorialists from Sir Robert Hart, the Inspector-General of Customs :—
"Since China has been opened to foreign trade, goods coming from or going into the interior either paid likin or transit duty. Foreign merchants' goods going into the interior, having paid the transit duty and received a transit duty certificate, thereupon become exempt from paying likin en route. This procedure applies equally to both
"
157
disastrous effect on the Filature Industry in China, with corresponding advantage to the pro- duction of those countries with which China now competes; and if it is intended to exempt native Filatures worked by hand or such-like means it would not only be inequitable, but it would possibly lead to the stoppage of Filatures worked by machinery: it would put back China in that respect to a period of 20 years ago, and throw out of employment not less than 25,000 natives who now derive a living and support for their families from those factories,
The native Government appears to imagine that China's production of Silk controls prices on foreign markets; on the contrary, foreign markets regulate the price which foreign merchants in China can afford to pay for Chinese Cocoons.
It may interest Your Excellency to know that the Likin and Loti Shui tax which the 10 per cent. is to supplement, already amount to an average of about 9 per cent., so China proposes to penalise the improved Silk product by no less than 19 per cent.
The Chamber does not of course contemplate that such an injustice would be permitted as to charge the additional Duty on silk reeled from Cocoons bought this season without a hint of the step now proposed. Your Excellency is possibly unaware that the exigencies of the trade necessitate the purchase of the entire annual requirements of Cocoons for the Filature Factories in May and June, when the market for Cocoons usually opens and lasts but two or three weeks; and that, consequently, this season's purchases have already been effected at prices which would obviously never have been paid had the proposed additional taxation been con- templated!
The Chamber, relying on your Excellency's sense of justice, call attention to the subject and beg that as Doyen of the Corps Diplomatique you will move your colleagues to inform the Tsungli Yamên that the proposals of their memorial will not be assented to by the Foreign Powers.
E. F. ALFORD, Chairman.
To His Excellency Colonel Denby,
(Signed)
Minister for the U.S. of America,
Doyen, Corps Diplomatique, Peking.
TRANSLATION OF MEMORIAL FROM THE TSUNGLI YAMEN.
Your servants, the Ministers of the Tsungli Yamên, on their knees present a Memorial with regard to the settlement of the tariff on manufactured goods, in order to maintain due regard for the public revenue and to secure substantial profit. Prostrate, they pray for the sacred glance on the memorial which they have reverently prepared.
We would observe with regard to the manufacture of goods by machinery at the various Treaty Ports, as for instance the cotton manufacture and silk filature in the South, and the manufacture of grape wine in the North, that on several occasions the Superintendents of Trade
for the Northern and Southern Ports have memorialised requesting that such produce shall only pay the export duty, or they have requested that both Customs Duty and Likin be remitted for some years, the intention being to benefit the people at the expense of the Government in the hope of giving an impetus to trade. At that time there was no express stipulation regarding the manufacture of goods by foreign merchants, and it was deemed advisable to act in accordance with the exigencies of affairs. After the conclusion of the Treaty of Shimonoseki, foreign merchants of all nationalities were empowered to manufacture native produce. As former Treaties do not provide for this contingency, it is imperative to devise some equitable mode of action calculated to arrest the drain on the country's resources, and to deprive (foreigners) of a pretext (ie, for demanding the abatement or abolition of duties) at the present moment. Japanese merchants are buying land in Shanghai for the erection of factories, and the merchants of other nationalities are also establishing factories in great numbers. Thus, in the twinkling of an eye, steam factories are established at the Treaty Ports as thick as trees, and commodities of all kinds overflow. Those who enjoy the advantages accruing from these manufactures should also incur the responsibility of paying duties. In the case of a new undertaking like this, it is very necessary to settle uniform tariff regulations without making distinctions in virtue of which some pay heavier and others lighter duties; so that it may be easy for all to conform therewith. We find that foreign merchants importing foreigu produce pay, in the majority of cases, an import duty of 5 per cent. On sending the goods into the interior, a further Transit Duty of Ts. 2. 5 mace is charged. Foreign merchants purchasing native produce in the interior under Transit Pass pay, in addition to the export duty, the half or Transit Duty, after which they are at liberty to export the goods. Foreign merchants carrying produce for sale, whether for import or export, pay no further duties beyond the Customs Duty and the Transit Duty; but native produce which has not yet reached the foreign consignee, and foreign produce which has been delivered to the native purchaser, must both pay Likin to supply the deficiencies in the Revenue. Moreover, where goods are manufactured by machinery (in China) lighterage, freight, insurance, and coolie hire are all saved, less capital is required and profits are abundant. Your memorialists having deliberated together would suggest that, leaving the Viceroys and Governors of the various provinces to fix the amount of the loti shui and Likin due on native produce at the place of production; manufactured produce, whether Chinese or foreign, should, bofore it leaves the place of manufacture, pay double the duty of five per cent. prescribed in the case of foreign exports, so as to supplement the Likin payable in the interior. This amounts to a daty of 10 per cent. Hereafter, whatever be their destination, all goods will be exempt from Likin; the gain in duties balancing the loss in Likin, so that the public revenue will remain at its present figure. At the present funds are unusually scarce, and liabilities multifarions. This is not an extravagant project to "mend the fold when the sheep has gone," but the intention is to make use of the guast (foreigner) in order to establish the host (China).' The native merchant eats the produce and dwells on the soil of China and should know how difficult it is for the Government to devise expedients. The goods of the foreign merchant find a ready market, and it is only right to have in view the same treatment for all.
*
Furthermore-The following representation has reached the Yamin of your memorialists from Sir Robert Hart, the Inspector-General of Customs :—
"Since China has been opened to foreign trade, goods coming froin or going into the interior either paid likin or transit duty. Foreign merchants' goods going into the interior, having paid the transit duty and received a transit duty certificate, thereupon become exempt from paying likin en route. This procedure applies equally to both
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