CO129-287 - Public Offices & Others - 1898 — Page 278

No. 6.

Sir C. MacDonald to the Marquess of Salisbury.--(Received July 11.)

2720.0.

17006

Peking, May 24, 18987 UL 38

(No. 95.) My Lord,

WITH reference to my despatch No. 49 of the 18th March, I have the honour to inclose herewith to your Lordship copy of a despatch which I have received from Her Majesty's Consul at Canton, mentioning the excellent effect on the Canton officials of the abolition of the kerosene tax-farming Syndicate.

I have, &c.

(Signed)

CLAUDE M. MACDONALD.

Inclosure in No. 6.

Consul Brenau to Sir C. MacDonald.

(No. 16.) Sir,

Canton, April 22, 1898. I HAVE the honour to report that the kerosene tax farmer has now paid me the value of the oil seized by him while it was still the property of Messrs. Shewan, Tomes, and Co., and that I have consequently informed the Viceroy that this case is settled.

Some weeks ago the Viceroy issued a Notice that by order of the Tsung-li Yamên, the tax-farming Syndicate was forthwith abolished, the reason given being that the Syndicate's proceedings gave rise to so many thorny questions. Severe as was the penalty for the Syndicate's repeated attempts to intimidate the trade by high-handed action, I felt that Messrs. Shewan, Tomes, and Co. were still entitled to recover the value of their stolen property, and after some delay the Syndicate reluctantly complied with my demand.

Since the abolition of the kerosene tax farm the li-kin on kerosene, formerly 30 cents a-case, has now been reduced to 15 cents; and this payment franks it throughout the province. In Canton the tax is levied by the li-kin office; in outlying districts the machinery for collecting it has not yet been established, but as soon as it is, I fear the same question will again present itself as to whether transit-pass oil is or is not liable to the terminal 15 cents a-case.

The farming Syndicate when starting had deposited 400,000 taels into the Pro- vincial Treasury as payment in advance. When the Syndicate was suppressed, half this sum still stood to the credit of the Syndicate. and an application was made for its return. As a rule, such deposits are looked upon as windfalls for the Treasury, but on this occa- sion, probably because influential officials were interested in the concern, the Viceroy agreed that the Syndicate should be paid off out of the receipts from the new kerosene

tax.

The effect on the Canton officials has been excellent. They now realize that illegal exactions will not be tolerated, and that when a dispute arises, it is better policy to settle with the Consul locally than to let the matter be referred to Peking.

I have, &c. (Signed) BYRON BRENAN.

[1515 g-2]

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