[This Document is the Property of His Britannic Majesty's Government]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
87
[April 18.]
SECTION 5.
Mr. Townley to the Marquess of Lansdowne.-(Received April 13.) (No. 73.) My Lord,
Peking, February 25, 1903. WITH reference to Sir E. Satow's despatch No. 286 of the 8th October last, I have the honour to transmit to your Lordship herewith a copy of a despatch which I have received from His Majesty's Consul-General at Hankow relating to the levying of li-kin on railway-borne goods and the refusal of the Lu-han Railway authorities to allow Chinese officers to enter their stations or go upon their trains to collect their dues.
I have, &c.
(Signed)
WALTER TOWNLEY.
(No. 6.) Sir,
Inclosure in No. 1.
Consul-General Fraser to Mr. Townley.
Hankow, February 9, 1903. I HAVE the honour to report that the Lu-han Railway authorities persist in their refusal to allow Chinese Revenue officers to enter their stations or go upon their trains for the purpose of examination of goods and of prevention of smuggling. They offer to collect li-kin along with freight if given 15 per cent. of receipts for their trouble, and they agree not to receive merchandise on which li-kin has not been paid.
The Chinese doubt the effectiveness of supervision by the Railway and decline to hand over revenue collection to a mercantile Company.
The situation is made worse from the Chinese point of view by the facts that a branch line has been constructed from the Hankow Station to the godowns of a Swiss firm under French protection, and that the Germans insist on the immediate carrying out of the Viceroy Chang's former promise to supply a branch to the German Concession. Concessions may, as I warned the Taotai, when he asked me to induce British owners to surrender at a fair rate land required for the German branch, have to demand similar facilities. The result must be to deprive China of control of the collection of some part of her revenue, even if the native authorities venture to place a cordon on the Chinese strip of land between the Railway property and the various Concessions on which his Excellency Chang insisted.
The Taotai sent the Consuls a set of Rules to insure inspection of rail-borne merchandise at the special li-kin offices near the stations; but the Consular Body decided that, until informed of the arrangement between the Chinese authorities and the Railway Company which enabled the Rules to be enforced, they could not consider them.
The Commissioner of Customs hopes to induce the Taotai to propose a set of outward-pass Rules which press less heavily on merchants than the Chinkiang Regulations; and the general adoption of the use of passes since they cover produce both on and away from the Railway may diminish the appended loss of revenue. It is not surprising to find the Chinese officials indignant at the independent position assumed by the Managers of what is after all a Chinese Government line; but they cannot claim any sympathy for the result of their own deliberate action.
I have, &c.
(Signed) E. H. FRASER.
2
[1934 n-5]
[This Document is the Property of His Britannic Majesty's Government}
CHINA TRADE.
CONFIDENTIAL.
No. 1.
87
[April 18.]
SECTION 5.
Mr. Townley to the Marquess of Lansdowne.-(Received April 13.) (No. 73.) My Lord,
Peking, February 25, 1903. WITH reference to Sir E. Satow's despatch No. 286 of the 8th October last, I have the honour to transmit to your Lordship herewith a copy of a despatch which I have received from His Majesty's Consul-General at Hankow relating to the levying of li-kin on railway-borne goods and the refusal of the Lu-ban Railway authorities to allow Chinese officers to enter their stations or go upon their trains to collect their dues.
I have, &c.
(Signed)
WALTER TOWNLEY.
(No. 6.) Sir,
Inclosure in No. 1.
Consul-General Fraser to Mr. Townley.
Hankow, February 9, 1903. I HAVE the honour to report that the Lu-han Railway authorities persist in their refusal to allow Chinese Revenue officers to enter their stations or go upon their trains for the purpose of examination of goods and of prevention of smuggling. They offer to collect li-kin along with freight if given 15 per cent. of receipts for their trouble, and they agree not to receive merchandise on which li-kin has not been paid.
The Chinese doubt the effectiveness of supervision by the Railway and decline to hand over revenue collection to a mercantile Company.
Other
The situation is made worse from the Chinese point of view by the facts that a branch line has been constructed from the Hankow Station to the godowns of a Swiss firm under French protection, and that the Germans insist on the immediate carrying out of the Viceroy Chang's former promise to supply a branch to the German Concession. Concessions may, as I warned the Taotai, when he asked me to induce British owners to surrender at a fair rate land required for the German branch, have to demand similar facilities. The result must be to deprive China of control of the collection of some part of her revenue, even if the native authorities venture to place a cordon on the Chinese strip of land between the Railway property and the various Concessions on which his Excellency Chang insisted.
The Taotai sent the Consuls a set of Rules to insure inspection of rail-borne merchandise at the special li-kin offices near the stations; but the Consular Body decided that, until informed of the arrangement between the Chinese authorities and the Railway Company which enabled the Rules to be enforced, they could not consider them.
The Commissioner of Customs hopes to induce the Taotai to propose a set of outward- pass Rules which press less heavily on merchants than the Chinkiang Regulations; and the general adoption of the use of passes since they cover produce both on and away from the Railway may diminish the appended loss of revenue. It is not surprising to find the Chinese officials indignant at the independent position assumed by the Managers of what is after all a Chinese Government line; but they cannot claim any sympathy for the result of their own deliberate action.
I have, &c.
(Signed) E. H. FRASER.
2
[1934 n-5]
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