CO129-302 - Public Offices - 1900 — Page 424

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to Wuchow with Shuihing or Takhing cargo, which are at present obliged to put in to Samshui for payment of duties.

The question of the right of foreign merchants, under Article VI, clause 3, of the Treaty of Shimonoseki, to establish godowns or hulks at the ports of call for the temporary storage of cargo, is one that will shortly have to be decided. It is not likely that the Customs authorities will offer any serious objection to this arrangement, but the provincial authorities evidently intend to.

The Viceroy has already stated that he cannot permit Messrs. Bunker and Co., a British firm doing a considerable trade on the river, to hire godowns at Shuihing, placing a quite unworkable interpretation on the clause above referred to.

This matter will form the subject of a separate detailed Report.

Under the heading "West River Trade" must be mentioned the passenger traffic between Kongmoon and Hong Kong.

This has now reached considerable dimensions, and two or three steamers leave Samshui every afternoon for Kongmoon, where they ship from 100 to 200 passengers for Hong Kong. The steam-ship" Samshui" and "Wuchow," by lowering the rates from 80 to 40 per cent. per passenger, attempted to obtain a monopoly of the traffic; but the Chinese Companies followed suit, and up to the present neither side shows any signs of giving way.

The present rates are, I understand, not remunerative unless the vessel carries each trip at least 100 passengers.

There is a small but growing passenger trade hetween Samshui, Kongmoon, and Macao.

II.-Trade between Canton and West River Ports.

The recent ruling of the This line is now served by four regular steamers. Inspector-General forbidding inter-Treaty port steamers to call at the various river- side towns, such as Juitsing and Dosing, has been a severe blow to the passenger trade.

Efforts have been made to obtain a modification of the rule in favour of passengers, and I understand the local Commissioners of Customs are in favour of this arrangement.

It is evident that the Customs must for the present maintain the rule as far as cargo is concerned, otherwise, were a steamer permitted to carry goods, say from an "inland" place above Wuchow direct to Canton, they would lose their "coast trade" duty. The ruling, howover, sets up differential treatment, as cargo carried on a native boat can pay one li-kin duty at the point of departure, and receive a certificate franking it through to Canton; and there is no doubt that the specially constructed passenger boats towed by the Ping On Company's launches habitually carry passengers and cargo between and beyond Treaty ports, although they are not specially regis-

tered for the trade."

There is much room for improvement in the type of steamer running between Canton and Wuchow. Even the newest are small and slow, and draw too much water to enable them to take advantage of the short route from Samshui to Canton during the summer months. The Canton Steam-boat Company are building two stem- wheel steamers of light draft, with spacious passenger accommodation; but they will not be ready for another year.

III. ---"Inland Waters" Trade.

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The number of launches plying under "Inland Waters Certificate Canton and various points on the Delta, North and West Rivers, has largely increased this season (by season is meant the high-water period from April to November, when launches can make use of the "back" creeks to Canton),

Three launches have run regularly this summer between Canton, Samshui and North River towns; two between Canton, Samshui and Shuihing; one Sainam, Samshui, and Dosing.

All but the last were under the Chinese flag. It will be noticed that the last- mentioned, the British steam-launch "Choyfat," does not make Canton her starting point. The Customs refused to allow her to run from Canton on the plea that with an Inland Water Certificate she could not pass Samshui, a second Treaty port.

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called the Canton Commissioner's attention to the fact that Chinese launches rant regularly from Canton via Samshui to various places on the North and West Rivers He admitted the fact, and, after some corre- under Inland Water Certificate. spondence, the Custom-houses at Canton and Samshui have agreed not to consider the latter place as a Treaty port for the purposes of inland water traffic. This con- stitutes, I venture to say, an important move in the direction of facilitating the free navigation of the inland waters by steamers.

I do not think that British Companies will ever be able to compete successfully with Chinese in the inland water carrying trade, even supposing both to enjoy equal opportunities. The general working expenses of the steamers (which for some years to come will probably be launches towing passenger and cargo boats) are much less in the case of a Chinese concern, and this saving is even more considerable in the items of agencies, travellers, &c. A certain number of launches will always be found carrying the British or other foreign flag, but these will be in reality Chinese owned, with a registered foreign owner to secure Consular protection.

Should the time ever arrive when the Chinese authorities would treat their own 'merchants with the justice they now unwillingly extend to foreign merchants, then it is probable that the number of British firms in Hong Kong and up the West River would sensibly diminish.

There is no reason, however, why British Companies should not obtain the monopoly of the direct carrying trade between Hong Kong and West River ports even up to Nanning, and there is room for a good line of shallow-draft passenger steamers between Canton and Wuchow-always presuming that the wayside towns will be re-opened to inter-Treaty port vessels.

I have made no mention of the new Inland Water Regulations which, together with a "responsible officer," were to appear at the beginning of this year.

The provincial authorities both in Kuangtung and Kuangsi have offered a determined opposition to the scheme, in which they foresee the deathblow to the present profitable method of collecting hi-kin, and (as already reported) the "Weiyuan** appointed to Wuchow was actually dismissed by the Governor for drawing up draft Regulations suggested by the Commissioner of Customs.

The li-kin Weiyüans " at Samshui and Wuchow have now been appointed Inland Water Weiyttans, and naturally things are at a standstill.

In spite of this fact and in spite of the restrictions still existing to the free navigation of the waters of this province by steamers, I venture to express the opinion that the complaints, so freely voiced in Hong Kong commercial circles and the public press, that the opening of the West River to foreign trade is a farce, are some- what exaggerated. Trade in all the branches I have referred to is steadily increasing, and the precautionary restrictions placed on it at its inception are gradually being removed.

The complete opening of the inland waters of this province would entail a revolution in its fiscal Government, for the collection of revenue, both on domestic and foreign trade, would have to be placed in the hands of the Customs-a most desirable and necessary reform, but one that cannot be effected in a day. I think a very good beginning has been made.

Two years ago the privilege of transit passes had become a dead letter in this province; now goods are sent up from Canton to all parts of the province in ever- increasing quantities.

When Wuchow was first opened to foreign trade, transit passes were publicly torn in pieces at a li-kin station within sight of the Custom-house; during the last half-year 9,439 inland passes were taken out at the Custom-house for all parts of Kuangsi, and even Yünnan and Kueichow, while native produce from such distant places as Nanning, Pose, Liuchow, and Lungchow were brought down wider 551 outward transit passes.

It has been made easier for native produce, say, from Langehow, to take a fourteen days' journey by water via West River to Hong Kong than to travel overland via Langson and Hanoi, only a five days' journey at the

most.

The two or three specially licensed steam-launches which formerly ran up the West River from Canton past this port have given place to some ten steamers and launches a-day, making connection between Hong Kong, Canton, Samshui, Wuchow, Macao, and all the important wayside towns on the West and North Rivers.

It must be admitted that the Freamble to the Inland Steam Navigation Regula-

* Deputy.

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