CO129-314 - Public Offices - 1902 — Page 406

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Consul-General Scott to the Marquess of Lansdowne. ~(Received August 18.)

(No. 62. Confidential.) My Lord,

Canton, July 12, 1902.

401

I HAVE the honour to forward herewith copy of my despatch No. 60, Confi- dential, of the 10th instant to His Majesty's Minister in Peking, with inclosure, with reference to an offer by the Portuguese Minister in Peking to allow the establishment of a branch of the Chinese Imperial Maritime Customs Department within the Portu- guese Colony of Macao. This information has reached me from reliable sources,

I have, &c. (Signed) JAMES SCOTT,

Inclosure 1 in No. 2.

C. O.

37508

We 9 CEP

(No. 60. Confidential.} Sir,

Consul-General Scott to Sir E. Sutow.

Canton, July 10, 1902. I HAVE the honour to forward you herewith copy and translation-obtained from a reliable source-of a letter addressed by the Viceroy to the Commissioner of Customs at this port on the subject of the establishment of the Chinese Customs at Macao, and the conversion of that place into a Treaty port.

The execution of this plan will insure a considerable saving of expenditure to the Chinese Government, who will thereby be enabled to dispense with the numerous Customs stations surrounding Macao with their large aggregate staff of some 800 persons. It is therefore only reasonable to suppose that the Portuguese Government are to obtain some quid pro quo for the proposal which they have, according to the inclosure in this despatch, made to the Chinese Government.

The presence of the Chinese Customs in Macao will give China s substantial interest in that port, and will furnish her with the right to join with Portugal in resisting French encroachments on the Portuguese Colony and its neighbourhood; and it appears to me probable that one of the reasons for the proposed change is to be accounted for by this political feature.

At the same time a strong motive for this offer of the Portuguese Government is to be looked for in the fact of the reported carly opening of Kongmoon as a Treaty port in the near vicinity of Macao. For years prior to the establishment of the Maritime Customs at Lappa, native trade from Hainan and the west coast of Kuang-tung practi- cally centred in Macao; but of recent years Kongmoon has developed at the expense of Macao, until it has become the second leading centre of trade in the Canton delta. There can be no doubt that it is the hope and intention of the Portuguese authorities to recover some of the lost prosperity of their Colony. The fact is, that the Maritime Customs cordon around Macao practically blocks the whole trade of the port, for native merchants naturally object to paying to the Chinese Customs an import duty on goods entering the Colony and an export duty on the same goods when leaving Macao for export to China. It is for this reason that junks have taken to trading with Kongmoon direct, where only one duty is charged.

Macao, however, placed on the basis of a Treaty port, will be on the same footing as the open ports in China, and will especially benefit in respect to the facility derived from drawbacks on re-exports. Enjoying, too, as she will, the same commercial advan- tages as Kongmoon and the other chief trading centres of the Canton delta, there is substantial ground for the expectation of the Portuguese authorities that the new arrangement will bring back some of the former prosperity of their Colony.

I have, &c.

(Signed) JAMES SCOTT,

Inclosure 2 in No. 2.

Viceroy at Canton to Commissioner of Customs, Canton.

(Translation.) Sir,

I HAVE just received a letter from the Foreign Office to the effect that the Por-

Canton, July 8, 1902. tuguese Minister in Peking states everybody knows that the Chinese Customs stations around Macao are very numerous, and entail a very considerable expenditure. In spite, however, of the Customs stations being so plentiful, and the large number of people employed in searching for smugglers, it is very difficult to prevent smuggling, and, however strict the Regulatious, the only result is injury to foreign shipping, the trade of the port, and the business of Chinese merchants on the West River. If a change hould de considered advisable, the only one that suggests itself is that Macao should be converted into a Treaty port. All goods coming into Macao for export to China could then be subjected to strict examination and compelled to pay the full duties of the Customs Tariff. Portugal is willing to consent to the establishment of the Chinese Customs in Macao, and to the removal of all the present stations [surrounding the port] If this change is instituted, not only will foreign opium be easily accounted for, but there will also be no waste of public funds.

We have the honour, therefore, to request your Excellency to inquire whether the establishment of the Chinese Customs at Macao would be advantageous.

I have to ask you to give this matter your consideration, and to report on the advantages and disadvantages of a Chinese Customs station at Macao.

I await your reply.