This Document is the Property of His Britannic Majesty's Government.]
2
carry out its pledge that foreign goods and native goods intended for export should not be interfered with, it might possibly happen that one or other of the provincial authorities might make such arrangements for the collection of the consumption tax as would involve interference with these classes of goods, and thus the Central Government would be exposed to a charge of failing to keep its engagements. It is assumed, therefore, that the Chinese Government has considered in advance the arrangements it will make, and what is desired is information as to what those arrangements are to be. The British merchants, for instance, consider that the Chinese Government must by this time—that is, eight months after the signing of the Treaty—be in a position to state in what places the consumption tax will be levied, and by what class of officials, and under what rules.
The second point on which in my earlier note information was asked related to the excise on goods of foreign type manufactured by machinery in China. The Treaty provides that the excise is to be collected through the Imperial Maritime Customs, whether the goods are manufactured by foreigners at the Treaty ports or by Chinese anywhere in China. The British commercial community are anxious to know what arrangements the Chinese Government proposes to make to insure the payment to the Customs of this excise on goods manufactured at places in the interior where no Maritime Customs officers are stationed.
The third point was the amount of the remittances which the provinces will be required to make out of the funds to be obtained from the increased import duties. To this inquiry your Highness answered that the amount could not be determined until it was seen what was the actual revenue produced by the surtax. But I am instructed by His Majesty's Government to point out that there is no necessity to wait till the actual yield of the surtax is ascertained. An examination of the Annexes to the Treaty will show your Highness that the provinces are to continue to remit to Peking the same contribution as that they have hitherto remitted out of their li-kin revenue, and that they shall also continue to provide whatever is necessary for the service of the foreign loan, to which li-kin is partly pledged. Both these amounts must at the present moment be known to the Board of Revenue; they must know what is the amount of the present contribution from each province out of li-kin receipts, and also what are the annual payments for the foreign loan secured on li-kin revenue, and what His Majesty's Government ask is to be informed what these amounts are.
A further point is the following:
By section 3 of Article VIII of the Treaty, the Chinese Government engage to furnish the British Government with a list of the native custom-houses now existing, as enumerated in certain official Regulations; and, by section 5 of the same Article, the Chinese Government promise to draw up and communicate to the British Government a list of the places where it is proposed to retain offices for the collection of duty on native opium. I shall be glad to know whether your Highness can supply me in advance with these lists for communication to His Majesty's Government.
The reference in your Highness' note to the negotiations with other Powers makes it desirable to point out that the British Treaty contains a provision that the ratifications of it are to be exchanged at Peking within a year from the date of signature. When that exchange has been made, both Governments will be bound by the provisions of the Treaty; the only way in which the negotiations of other Powers affect it is that the operation of Article VIII is suspended until they have entered into similar engagements. I have further the honour to suggest to your Highness that the points with regard to which the British commercial communities entertain misgivings, and on which they wish for fuller explanations, are likely also to engage the attention of the merchants of other countries and of the Treaty negotiators who represent them, and that any explanations it is in your Highness' power to give tending to allay those misgivings will in all probability favourably affect the course of China's negotiations with other Powers.
I avail, &c.
(Signed) WALTER TOWNLEY.
INA TRADE.
CONFIDENTIAL
No. 1.
[July 20.]
SECTION 1,
230
Mr. Townley to the Marquess of Lansdowne,—(Received July 20.)
No. 212.)
Peking, June 1, 1903.
Lord,
UPON the receipt of your Lordship's telegram No. 92 of the 25th ultimo, I called upon the Japanese Minister and informed him that His Majesty's Government had decided, since no better scheme had been put forward, to renew the proposal made last June to accept payment of the Chinese indemnity in silver up to 1910. I said that I was instructed to tell him that His Majesty's Government were now about to make this offer to the Chinese Government on their own account, since none of the Powers Signatory of the Final Protocol, except America, had agreed to it last summer, and that I was to inform the Chinese Government that the proposal was conditional upon the signature of the fractional bonds, and that it would be left to future decision whether the payment in silver should be considered as full satisfaction for the debt, or whether the Chinese Government should be called upon at a later date to make good the difference between the amount received and what was due to the British Government in gold.
Mr. Uchida, who promised to refer the matter to his Government, has since informed me that the Japanese Government still insist upon full payment in gold.
I subsequently spoke to all the Representatives of the Powers Signatory of the Final Protocol, and explained to them the nature of the instructions that I had received from your Lordship. No one was in a position to give me an answer without referring the matter home, but I gathered that the majority were disposed to recommend to their Governments some measure of alleviation as soon as China had signed the fractional bonds. The Representatives of those countries which have raised loans off their claims at once are of opinion that it will be hard to adopt the scheme proposed to the Chinese Government by His Majesty's Government. Whilst all think that the increase of China's burden in consequence of the fall in the price of silver entitles her to some consideration, the opinion is almost unanimous that China can quite well pay the full amount in gold if she chooses to do so. This is very likely the case, but there is nevertheless no denying the fact that the increased payment does weigh very heavily upon some, at least, of the poorer provinces, and that the Central Government is much hampered in carrying out necessary measures by want of money.
I have the honour to inclose copies of my letters to the doyen of the Diplomatic Body and to Prince Ching upon the subject.
I have, &c.
(Signed) WALTER TOWNLEY.
Inclosure 1 in No. 1.
Mr. Townley to Mr. Conger.
Peking, May 26, 1903.
Dear Mr. Dean,
ON the 30th June last Sir Ernest Satow informed you that His Majesty's Government had come to the conclusion that the Powers ought to allow a relaxation of the terms imposed upon China in respect of the indemnity provided for in the Final Protocol, and that they considered that the most convenient form of doing this would be that the Powers should agree to accept during the years 1902 to 1910, inclusive, payment in silver, according to the actual figures of the Table of Amortization, crediting the Chinese Government with the corresponding amounts in gold, and writing off the balance due for those nine years altogether.
The above quoted proposal did not meet with the support of the other Powers at the time.
The British Government are now prepared, since the discussions of the foreign Representatives at Peking have not led to the suggestion of any other alternative,
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This Document is the Property of His Britannic Majesty's Government.]
2
carry out its pledge that foreign goods and native goods intended for export should not be interfered with, it might possibly happen that one or other of the provincial authorities might make such arrangements for the collection of the consumption tax as would involve interference with these classes of goods, and thus the Central Government would be exposed to a charge of failing to keep its engagements. It is assumed, therefore, that the Chinese Government has considered in advance the arrangements it will make, and what is desired is information as to what those arrangements are to be. The British merchants, for instance, consider that the Chinese Government must by this time--that is, eight months after the signing of the Treaty--be in a position to state in what places the consumption tax will be levied, and by what class of officials, and under what rules.
The second point on which in my earlier note information was asked related to the excise on goods of foreign type manufactured by machinery in China. The Treaty provides that the excise is to be collected through the Imperial Maritime Customs, whether the goods are manufactured by foreigners at the Treaty ports or by Chinese anywhere in China. The British commercial community are anxious to know what arrangements the Chinese Government proposes to make to insure the payment to the Customs of this excise on goods manufactured at places in the interior where no Maritime Customs officers are stationed.
The third point was the amount of the remittances which the provinces will be required to make out of the funds to be obtained from the increased import duties. To this inquiry your Highness answered that the amount could not be determined until it was seen what was the actual revenue produced by the surtax. instructed by His Majesty's Government to point out that there is no necessity But I am to wait till the actual yield of the surtax is ascertained. Annexes to the Treaty will show your Highness that the provinces are to continue to An examination of the remit to Peking the same contribution as that they have hitherto remitted out of their li-kin revenue, and that they shall also continue to provide whatever is necessary for the service of the foreign loan, to which li-kin is partly pledged. amounts must at the present moment be known to the Board of Revenue; they Both these must know what is the amount of the present contribution from each province out of li-kin receipts, and also what are the annual payments for the foreign loan secured on li-kin revenue, and what His Majesty's Government ask is to be informed what these amounts are.
A further point is the following:
By section 3 of Article VIII of the Treaty, the Chinese Government engage to furnish the British Government with a list of the native custom-houses now existing, as enumerated in certain official Regulations; and, by section 5 of the same Article, the Chinese Government promise to draw up and communicate to the British Government a list of the places where it is proposed to retain offices for the collection of duty on native opium. I shall be glad to know whether your Highness can supply me in advance with these lists for communication to His Majesty's Government.
The reference in your Highness' note to the negotiations with other Powers makes it desirable to point out that the British Treaty contains a provision that the ratifica- tions of it are to be exchanged at Peking within a year from the date of signature. When that exchange has been made, both Governments will be bound by the provi- sions of the Treaty; the only way in which the negotiations of other Powers affect it is that the operation of Article VIII is suspended until they have entered into similar engagements. I have further the honour to suggest to your Highness that the points with regard to which the British commercial communities entertain misgivings, and on which they wish for fuller explanations, are likely also to engage the attention of the merchants of other countries and of the Treaty negotiators who represent them, and that any explanations it is in your Highness' power to give tending to allay those misgivings will in all probability favourably affect the course of China's negotiations with other Powers.
I avail, &c.
(Signed) WALTER TOWNLEY.
INA TRADE.
NFIDENTIAL
No. 1.
[July 20.]
SECTION 1,
230
Mr. Townley to the Marquess of Lansdowne,--(Received July 20.)
Jo. 212.)
Peking, June 1, 1903. Lord, UPON the receipt of your Lordship's telegram No. 92 of the 25th ultimo, I alled upon the Japanese Minister and informed him that His Majesty's Government ad decided, since no better scheme had been put forward, to renew the proposal made ast June to accept payment of the Chinese indemnity in silver up to 1910. I said that as instructed to tell him that is Majesty's Government were now about to make this offer to the Chinese Government on their own account, since none of the Powers Signa- tory of the Final Protocol, except America, had agreed to it last summer, and that I was to inform the Chinese Government that the proposal was conditional upon the signa- ture of the fractional bonds, and that it would be left to future decision whether the payment in silver should be considered as full satisfaction for the debt, or whether the Chinese Government should be called upon at a later date to make good the lifference between the amount received aud what was due to the British Government in gold.
Mr. Uchida, who promised to refer the matter to his Government, has since informed me that the Japanese Government still insist upon full payment in gold.
I subsequently spoke to all the Representatives of the Powers Signatory of the Final Protocol, and explained to them the nature of the instructions that I had received from your Lordship. No one was in a position to give me an answer without referring the matter home, but I gathered that the majority were disposed to recom- mend to their Governments some measure of alleviation as soon as China had signed the fractional bonds. The Representatives of those countries which have raised loaus off their claims at once are of opinion that it will be hard to adopt the scheme proposed to the Chinese Government by His Majesty's Government. Whilst all think that the increase of China's burden in consequence of the fall in the price of silver entitles her to some consideration, the opinion is almost unanimous that China can This is very likely the quite well pay the full amount in gold if she chooses to do so.
to
pay
case, but there is nevertheless no denying the fact that the increased payment does weigh very heavily upon some, at least, of the poorer provinces, and that the Central Government is much hampered in carrying out necessary measures by want of
money.
I have the honour to inclose copies of my letters to the doyen of the Diplomatic Body and to Prince Ching upon the subject,
I have, &c.
Dear Mr. Dean,
(Signed)
Inclosure 1 in No. 1.
Mr. Townley to Mr. Conger.
WALTER TOWNLEY.
Peking, May 26, 1903. ON the 30th June last Sir Ernest Satow informed you that His Majesty's Govern- ment had come to the conclusion that the Powers ought to allow a relaxation of the terms imposed upon China in respect of the indemnity provided for in the Final Protocol, and that they considered that the most convenient form of doing this would be that the Powers should agree to accept during the years 1902 to 1910, inclusive, payment in silver, according to the actual figures of the Table of Amortization, crediting the Chinese Government with the corresponding amounts in gold, and writing off the balance due for those nine years altogether.
The above quoted proposal did not meet with the support of the other Powers at
the time.
The British Government are now prepared, since the discussions of the foreign Representatives at Peking have not led to the suggestion of any other alternative,
[2077 U -1]
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