has been, up to date, no systematic attempt to extend them throughout the length of the West River, so that to a large extent the competition we encounter although keen is but the natural result of rivalry in trade.
When the inland waters of China were first laid to be open a good deal of doubt existed as to the conditions under which the navigation of them would be allowed, and with a view to gaining information on this important point—important to us, not only from the expansion of trade that would result but also that it might seriously modify the plans of vessels we were then contracting to have built—we applied to the Imperial Maritime Customs at Samshui to register the steamer Kongpake for inland navigation. After reference to Peking this was refused by the Inspector-General of Customs, whose decision on the matter is given in the Samshui Commissioner's letter, copy of which is attached.
While we still think that the privileges asked for might be accorded without danger to the safety of the revenue of China we must at the same time admit that there are considerable difficulties in the way and that probably the only effective way of meeting them would be to open Kongmoon or some other place situated at the mouth of the river as a treaty port, whence and also from Samshui and Wuchow, after payment of duties, goods would be free to find their way inland carried either by the importing or other steamer as was found most convenient.
So far we have only dealt with the effect the opening of waters has had on the direct trade with Hongkong, the craft engaged in which come under the heading of vessels engaged in trade with ports outside Chinese jurisdiction and are therefore excluded from any direct participation in the benefits which should result herefrom. There still, however, remains the Canton-Wuchow trade, the steamers on which being vessels engaged in inter-treaty-port trade, are also, by the Inspector-General's ruling, debarred from inland water privileges. It is to this decision as affecting this class of vessel that we would beg your most earnest attention, as we are of the unanimous opinion that if enforced it will, as we have already stated, render the whole concession valueless.
From the beginning our vessels on the Canton-Wuchow line have been subjected to such restrictions that it seemed quite hopeless for them to attempt to compete with their more favoured Chinese rivals who by means of specially constructed lighters towed by steam launches secure the great bulk of the cargo and, until recently, of the passengers. The system adopted at the treaty ports is for these lighters and their cargoes to come under the likin administration, and the steam launch, which is merely the means of propulsion and carries no cargo, comes under the I.M. Customs, a dual system of control which gives the advantage of the quickness of steam transit and an elastic tariff for the payment of duty on the cargo carried on the lighters.
Nor is it so much the fact that the likin collected on this cargo is less than the one and a half duty which would be levied by the I.M. Customs if it were carried in our steamers, as it is if so carried, likin taxes before shipment and after discharge would be payable in addition to the Customs duty and a half. The foregoing facts are only too well known and have been frequently commented on, notably by H.B.M. Consul at Canton in his trade report for 1897; but if further proof be needed it is abundantly supplied by the fact that the only domestic trade of which we secure the carriage is a few piculs of goods between Samshui and Wuchow, whereas the merchants refuse to ship the same goods by our vessels between Wuchow and Canton even although the freight charged be the same in both cases!
That is to say, taxation and cost of transport being equal for both distances they will ship by one vessel over the shorter one but steadily refuse to do so over the longer one! The explanation of this is simple. At Samshui by vigorous protests made at the opening of the port the native goods carried in foreign vessels are to a certain extent exempt from likin taxes before shipment and after discharge, while at Canton the reverse is the case, and as the bulk of the domestic trade of the West River districts is destined for or comes from Canton as being the great centre or mart of trade the natural result of this differential taxation is that our Chinese rivals secure the carriage of the whole of it. Nor does the evil stop at this, for knowing that our earnings must be made out of the carriage of foreign goods, into which, as far as the carrying in steamers between treaty ports goes, the question of taxation does not enter they can either conform to our rates of freight and compete against us or by lowering them slightly get the monopoly of the carriage of these as they do of the domestic trade.
Although the subject of this representation is the disadvantages under which we suffer as British Shipping Companies engaged in the carrying trade of China we will for the moment waive this question and look at it from the broader standpoint of trade in general. From the foregoing, it might be argued that although we as individual concerns suffer, the great circulation of goods is facilitated by steam traffic. Were such the case we might well find compensation for our losses in the general prosperity that would result, but it is only to the privileged few that permission is given to run this class of vessel and any attempt to encroach on the monopoly thus secured, either on the part of Chinese or Foreign steamers, is rendered nugatory by differential duties in the manner we have shown.
Again, with the passenger traffic the Chinese vessels had the option of using all routes connecting Canton with the West River, whereas we were confined to one only, laid down by the Customs, entailing an increase in the distance traversed of some thirty miles. They were also privileged to stop at any and all places en route for the embarking and disembarking of passengers or cargo while we were confined to the four ports of call (See Canton Commissioner's Trade Report, 1897, pars. 4 and 7).
The question of opening the shorter routes to foreign vessels was made the subject of representation to H.M. Consul at Canton, but so scandalous had the disabilities under which we laboured become and so heavy the losses incurred in running steamers practically empty that the question of withdrawing them altogether from the trade was being seriously considered when the throwing open of the inland waters gave the I.M. Customs the chance, of which they gladly availed themselves, of attempting to place us on terms of equality with our opponents.
This equality in respect to the carriage of passengers we now enjoy and we were not without hopes that, by Clause 5 of the Supplementary Rules under Inland Steam Navigation Regulations, goods carried in native boats towed by steamers would come under the same rules for duty payment as goods carried in our vessels, but up to date there is no sign of any attempt being made to bring this about, and moreover by the Inspector-General's decision it would appear that instead of a further step being taken to secure equality of taxation for all goods no matter how carried a retrograde movement is contemplated which will place us in the disastrous position we occupied at the opening of the trade.
If this decision hold good the utter impossibility of any steamer securing the carriage of goods under inland navigation rules can perhaps...
25
has been, up to date, no systematic attempt to extend them throughout the length of the West River, so that to a large extent the competition we encounter although keen is but the natural result of rivalry in trado.
When the inland waters of China were first lared to be opeu a good deal of doubt existed as to the conditions under which the navigationTM of them would be allowed, and with a view to gaining information on this important point- important to us, not only from the expansion of trade that would resalt but also that it might seriously modify the plans of vessels we were then contracting to have built-we applied to the Imperial Maritime Customs at Samshui to register the steamer Kongpake for inland navigation. After reference to Peking
this was refused by the Inspector-General of Customis, whose decision on the matter is given in the Samshui Commissioner's letter, copy of which is attached. While we still think that the privileges asked for might be accorded without danger to the safety of the revenue of China we must at the same time admit that there are considerable difficul ties in the way and that probably the only effective way of meeting them would be to opeù Kongmoon or some other place situated at the mouth of the river as a treaty port, whenes and also from Samshui and Wuchow, after pay- ment of duties, gonds would be free to find their way inland carried either by the importing or other steamer as was found most convenient.
So far we have only dealt with the effect the opening of waters has had on the direct trade with Hongkong, the craft engaged in which come under the heading of vessels engaged in trade with ports outside Chinese jurisdiction and are therefore excluded from any direct participation in the benefits which sbould rezult herefrom. There still, however, remains the Canton-Wuchow irade, the steamers on which being vessels engaged in inter-treaty-port trade, ara also, by the Inspector-General's ruling, debarred from inland water privileges. It is to this decision as affecting this class of vessel that we would beg your most earnest attention, as we are of the noanimous opinion that if eu. forced it will, as we have already stated, render the whole concession valueless.
From the beginning our vessels on the Can- ton-Wuchow line have been subjected to such restrictions that it seemed quite hopeless for them to attempt to compete with their more favoured Chinese rivals who by means of specially constructed lighters towed by steam launches secure the great bulk of the cargo and, until recently, of the passengers. The system adopted at the treaty parts is for these lighters and their cargoes to coma under the lekin al- winistration, and the steam launch, which is norely the means of propulsion and carries un argo, comes under the I.M. Customs, a dual Eyatent of control which gives the advantage of the quickness of steam transit and au elastic tariff for the payment of duty on the cargo car- riod on the tighters. Nor is it so much the fact that the lekin collected on this cargo is less than the one and a half duty which would be levied by the I. M. Customs if it were carried in our steamers, as it is if so carried, lekin taxOS before shipment and after discharge would be [ payable in addition to the Customs daty and a helf. The foregoing facts are culy loo well known and have been frequently commented ou, notably by H.B.M. Consul at Canton in his trade report for 1897; bat if farther proof bo Bented it is abundantly supplied by the fact that the only domestic trade of which we secure the carriage is a few picals of goods between Samshui and Wuchow, whereas the merchants refuse to ship the same goods by our vessels between Wuchow and Canton even although the freight charged be the same in both cases!
Trat
That is to say, taxation and cost of transport being equal for both distances they will ship by one vessels over the shorter one but steadily refuse to do so over the longer one! The ex- planation of this is simple. At Samsini by vigorous protests made at the opening of the port the native goods carried in foreign vessels are to a certain extant exempt from lekin taxes before shipment and after discharge, while at Canton the reverse is the case, and as the balk of the domestic trade of the West River districts is destined for or comes from Canton as being the great centre or mart of trade the natural result of this differential taxation is that our Chinese rivals secure the onrriage of the whola of it. Nor does the evil stop at this, for know- ing that our earnings must be made out of the carriage of foreign goods, into which, as far as the carrying in steamers between treaty ports goes, the question of taxation does not enter they can either conform to our rates of freight and compete against as or by lowering them slightly get the monopoly of the carriage of these as they do of the domestic trade.
Although the subject of this representation is the disadvantages under which we suffer as British Shipping Companies engaged in the carrying trade of Chius we will for the moment waive this question and look at it from the broader standpoint of trade in general. From the foregoing, it might be argued that al- though we as individual concerns suffer, the great cirenlation of goods is facilitated by steam traffic. Were such the case we might well find compensation for our losses in the general prosperity that would result, but it is only to the privileged few that permission is given to ran this class of vessel and any attempt to encroach on the monopoly thus secured, either on the part of Chinese or Foreign steamers, is Andered nugatory by differential duties in the manner we have shown.
Again, with the passenger traffic the Chinese vessels had the option of using all routes con- necting Canton with the West River, whereas we were contined to one only, laid down by the Customs, entailing au ineroase in the distance traversed of some thirty miles. They were also privileged to stop at any and all places en route for the embarking and disembarking of passen- gers or cargo while we were confined to the four ports of call (See Canton Commissioner's Trade Report, 1897, pars, 4 and 7).
The question of opening the shorter routes to foreign vessels was made the subject of ro- presentation to H M. Cousal at Canton, but so scandalous bad the disabilities under which we laboured become and so heavy the losses in- ourred in raubing steamers practically empty that the question of withdrawing them alto gether from the trade was being seriously con- sidered when the throwing open of the inland waters gave the I M. Customs the chance, of which they gladly availed themselves, of attempt. ing to place us ou terms of equality with our opponents. This equality in respect to the carriage of passengers we now enjoy and we were not without hopes that, by Clause 5 of the Suplementary Rules under Tuland Steam Nari- gation Regulations, goods carried in native boats towed by steamers would come under the same rules for duty payment as goods carried in our reseals, but up to date there is no sign of any attempt being inade to bring this about, and moreover by the Inspector-General's deci- sion it would appear that instead of a further stop being taken to secure equality of taxation for all goods no matter how sarried a retrogade movement is contemplated which will place us in the disastrous position we occupied at the opening of the trade.
If this decision hold good the utter impos sibility of any steamer securing the carriage of goods under inland navigation rules can per
-haps
25
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