INA TRADE.
CONFIDENTIAL.
No. 1.
[July 20.]
SECTION 2.
(To be continued in Nos. 190 to 214.) Lord,
Mr. Townley to the Marquess of Lansdowne.--(Received July 20.)
Peking, June 3, 1903.
THE despatches from His Majesty's Acting Consul at Wuhu, of which I have the honour to inclose copies, raise what is, I believe, a new point in connection with commercial privileges of British subjects in the interior of China, namely, whether they are entitled to establish Chinese agencies in the interior for the sale, whether wholesale or retail, of their goods, and if so, under what conditions as regards taxation. There has also been raised by the Chinese authorities the question of the right of these agencies to exhibit signboards bearing the name of the foreign firm which they represent.
The view I have taken in my instructions to Mr. Savage, as will be seen from the inclosed copy of my despatch, is that there is no reason why foreign firms should not employ Chinese agents in the interior, but that their establishments are liable to the same taxation as that legally imposed on their native competitors.
I have further intimated that, in my opinion, the use of signboards suggesting that the owner of the shop has the privileges of a foreign firm should be discouraged, though I see no objection to the exhibition of signs merely indicating the fact of his agency.
I have informed Mr. Savage that my instructions are subject to your Lordship's approval.
I have, &c.
(Signed)
WALTER TOWNLEY.
(No. 7.)
Inclosure 1 in No. 1.
Acting Consul Savage to Mr. Townley.
Wuhu, May 15, 1903.
I HAVE the honour to ask your instructions in respect of the following case :---- For some time past Messrs. Butterfield and Swire have been endeavouring, with some success, to extend their import business in the manufacture of sugar, by engaging Chinese agents to act on their behalf for the sale of this commodity. I understand that Messrs. Arnhold Karberg and Co. have followed suit in respect of kerosine. They are the agents of the Shell Transport and Trading Company.
The procedure followed by these firms is to enter into an agreement with a Chinese agent for the sale of a certain quantity of their goods at various places in the interior. The agent opens establishments at these places, imports the goods under transit pass, and sells them in the local markets. Several agencies have now been established in this way, both at Wuhu and at other places in the neighbourhood, and the result has been that the sale of Butterfield and Swire's sugar has already gone up by leaps and bounds.
Little opposition has been met with so far. Li-kin officials have attempted to raise difficulties at various places, but a letter from this office to the Taotai has, so far, had the desired effect of causing the goods to be promptly released.
Recently, however, difficulties have been raised by the Nganking officials to the establishment of these agencies in that city. The head official of the shop-tax office ("huo-ku-chü") petitioned the Acting Governor to prohibit these agencies, his contention being that foreign merchants are not allowed by Treaty to establish depôts in the interior; that foreign goods, after they have arrived at their destination and passed into Chinese hands, are liable to be taxed equally with native produce, and that exemption from li-kin and the evasion of other taxes, which is the object of these agencies, will lead to a monopoly of the trade in their favour.
This petition was embodied in a despatch from the Acting Viceroy to the Wuhu Taotai, with instructions to request me to order Messrs. Butterfield and Swire to close their agency at Nganking.
[2077 u-2]
INA TRADE.
NFIDENTIAL,
No. 1.
[July 20.]
SECTION 2.
190
to. 214.) Lord,
Mr. Townley to the Marquess of Lansdowne.--(Received July 20.)
Peking, June 3, 1903. THE despatches from His Majesty's Acting Consul at Wuhu, of which I have e honour to inclose copies, raise what is, I believe, a new point in connection with commercial privileges of British subjects in the interior of China, namely, whether ey are entitled to establish Chinese agencies in the interior for the sale, whether jolesale or retail, of their goods, and if so, under what conditions as regards tation. There has also been raised by the Chinese authorities the question of the ht of these agencies to exhibit signboards bearing the name of the foreign firm which ey represent.
The view I have taken in my instructions to Mr. Savage, as will be seen from the closed copy of my despatch, is that there is no reason why foreign firms should not ploy Chinese agents in the interior, but that their establishments are liable to the me taxation as that legally imposed on their native competitors.
I have further intimated that, in my opinion, the use of signboards suggesting at the owner of the shop has the privileges of a foreign firm should be discouraged, ough I see no objection to the exhibition of signs merely indicating the fact of his
ency.
I have informed Mr. Savage that my instructions are subject to your Lordship's proval.
I have, &c.
(Signed)
WALTER TOWNLEY.
Jo. 7.)
Inclosure 1 in No. 1.
Acting Consul Savage to Mr. Townley.
Wuhu, May 15, 1903. I HAVE the honour to ask your instructions in respect of the following case :---- For some time past Messrs. Butterfield and Swire have been endeavouring, with me success, to extend their import business in the manufacture of sugar, by gaging Chinese agents to act on their behalf for the sale of this commodity. I derstand that Messrs. Arnhold Karberg and Co. have followed suit in respect of rosine. They are the agents of the Shell Transport and Trading Company.
The procedure followed by these firms is to enter into an agreement with a inese agent for the sale of a certain quantity of their goods at various places in the terior. The agent opens establishments at these places, imports the goods under ansit pass, and sells them in the local markets. Several agencies have now been tablished in this way, both at Wuhu and at other places in the neighbourhood, and e result has been that the sale of Butterfield and Swire's sugar has already gone up leaps and bounds.
Little opposition has been met with so far. Li-kin officials have attempted to ise difficulties at various places, but a letter from this office to the Taotai has, so far,
the desired effect of causing the goods to be promptly released.
Recently, however, difficulties have been raised by the Nganking officials to the tablishment of these agencies in that city. The head official of the shop-tax office tso-ku-chü") petitioned the Acting Governor to prohibit these agencies, his conten- in being that foreign merchants are not allowed by Treaty to establish depôts in the terior; that foreign goods, after they have arrived at their destination and passed to Chinese hands, are liable to be taxed equally with native produce, and that exemption from li-kin and the evasion of other taxes, which is the object of these encies, will lead to a monopoly of the trade in their favour.
This petition was embodied in a despatch from the Acting Viceroy to the Wuhu otal, with instructions to request me to order Messrs. Butterfield and Swire to close eir agency at Nganking.
[2077 u-2]
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