This Document is the Property of His Britannic Majesty's Government.
# CHINA TRADE
## CONFIDENTIAL
### No. 1
[April 1.]
### SECTION 2.
74
Sir,
Board of Trade to Foreign Office.-(Received April 1.)
Board of Trade, March 31, 1903.
I AM directed by the Board of Trade to acknowledge the receipt of your letter of the 12th instant, forwarding copy of a despatch from His Majesty's Chargé d'Affaires at Peking, together with a despatch from the Acting British Consul at Yünnan-fu, in which he raises certain points in connection with Article VIII of the new Anglo-Chinese Treaty.
With reference to Lord Lansdowne's request to be furnished with the Board of Trade's observations respecting Nos. (1), (4), and (5) of the questions raised by Mr. Litton, I am to state as regards (1) that the Board do not consider it necessary, at present, for His Majesty's Government to take any action in respect of the future charges on land-borne goods. The Board agree that this question is likely to be brought forward at a later stage by the French and Russian Governments, with a view to obtaining better terms than those stipulated for in the Treaty of Shanghae; but it appears to them that, in the meantime, it should be sufficient to insist on the right of British goods entering China by way of Burma to have applied to them, in virtue of the most-favoured-nation treatment to which they are entitled, the same rate of duty as is charged on French goods imported from French Indo-China.
As regards (4) respecting the liability to consumption tax of cloth woven in Yunnan from Bombay yarns, the Board are of opinion that such cloth would be included in the category of "articles of Chinese origin," referred to in Article VII, section 8, and therefore would be subject to consumption duty. It appears to them that, in order to enable the cloth in question to escape payment of the consumption tax, it would be necessary that it should be machine-made, in the sense of section 9.
With regard to (No. 5), in which Mr. Litton points out that mules and ponies are not included in the provision of Article VIII, section 3, under which boats, junks, and carts are exempted from all taxation, other than a "reasonable charge," the Board concur in the view that it would have been more satisfactory if pack animals had been included in the exemption referred to, but they consider that the question may safely be left in abeyance for the present. At the same time they are of opinion that Mr. Litton's suggestion under this head should come up again for consideration if, and when the surtax provisions, either as fixed by the Treaty of Shanghae, or as modified by Treaties between China and other Powers, shall be generally accepted.
I have, &c. (Signed) FRANCIS J. S. HOPWOOD.
[1934 a-2]
This Document is the Property of His Britannic Majesty's Government.
CHINA TRADE.
CONFIDENTIAL.
No. 1.
[April 1.]
SECTION 2.
74
Sir,
Board of Trade to Foreign Office.-(Received April 1.)
Board of Trade, March 31, 1903.
your
I AM directed by the Board of Trade to acknowledge the receipt of letter of the 12th instant, forwarding copy of a despatch from His Majesty's Chargé d'Affaires at Peking, together with a despatch from the Acting British Consul at Yünnan-fu, in which he raises certain points in connection with Article VIII of the new Anglo-Chinese Treaty.
With reference to Lord Lansdowne's request to be furnished with the Board of Trade's observations respecting Nos. (1), (4), and (5) of the questions raised by Mr. Litton, I am to state as regards (1) that the Board do not consider it necessary, at present, for His Majesty's Government to take any action in respect of the future charges on land-borne goods. The Board agree that this question is likely to be brought forward at a later stage by the French and Russian Governments, with a view to obtaining better terms than those stipulated for in the Treaty of Shanghae ; but it appears to them that, in the meantime, it should be sufficient to insist on the right of British goods entering China by way of Burmalı to have applied to them, in virtue of the most-favoured-nation treatment to which they are entitled, the same rate of duty as is charged on French goods imported from French Indo-China.
As regards (4) respecting the liability to consumption tax of cloth woven in Yunnan from Bombay yarns, the Board are of opinion that such cloth would be included in the category of "articles of Chinese origin," referred to in Article VII), section 8, and therefore would be subject to consumption duty. It appears to them that, in order to enable the cloth in question to escape payment of the consumption tax, it would be necessary that it should be machine-made, in the sense of section 9. With regard to (No. 5), in which Mr. Litton points out that mules and ponies are not included in the provision of Article VIII, section 3, under which boats, junks, and carts are exempted from all taxation, other than a "reasonable charge," the Board concur in the view that it would have been more satisfactory if pack animals had been included in the exemption referred to, but they consider that the question may safely be left in abeyance for the present. At the same time they are of opinion that Mr. Litton's suggestion under this head should come up again for consideration if, aud when the surtax provisions, either as fixed by the Treaty of Shanghae, or as modified by Treaties between China and other Powers, shall be generally accepted.
I have, &c. (Signed) FRANCIS J. S. HOPWOOD.
[1934 a-2]
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