This Document is the Property of His Britannic Majesty's Government.] 463
CHINA TRADE.
CONFIDENTIAL.
No. 1.
C.O.
[August 30(1905)]
SECTION
Acting Consul Fox to the Marquess of Lansdowne.-(Received August 5.)
5]
RECEIVED
1st Pro 2 SEP 04/
Wuchow, June 30, 1904.-
(No. 10.) My Lord,
BY direction of His Majesty's Minister in Peking, I have the honour to forward to your Lordship copy of the political and commercial summaries forming part of my last Intelligence Report, dated the 4th instant.
I have, &c.
(Signed) HARRY M. FOX.
Inclosure in No. 1.
Wuchow Intelligence Report, February 1 to May 31, 1904.
AN important innovation affecting internal taxation in this province was introduced by the Provincial Government at the Chinese New Year. Li-kin was declared to be abolished, and a new system, called "Pai Huo T'ung Shui," a collective tax on all merchandise, substituted in its place. The new Regulations, which have undergone considerable changes since they were first issued, are, as such Regulations are wont to be in China, extremely complicated. The gist of them is shortly as follows:-
The old system of collecting dues on merchandise circulating in the province at the various barriers en route—it is mentioned that these barriers are fifty-three in number—is done away with, and instead, goods entering the province pay one duty at the first Customs station, which frees them from all further charges, and goods originating in the province similarly pay one duty at the first station passed on their way to their destination. All goods, however, are liable to inspection at certain examination stations, of which seventeen, situated for the most part on the West River and its tributaries, are enumerated; and heavy fines, with confiscation of goods, are provided for cases where the quantity or marks do not correspond with the original duty Memo. This, of course, makes sales en route impossible. All extra charges whatsoever are abolished, and the salaries of the officials entrusted with the collection are fixed. Certain special taxes are retained, such as the frontier defence tax levied at Mengkong, and the military escort tax hitherto collected at Hsunchow. The new duties, except in the case of opium and salt, are based on and similar to the old li-kin tariff. Actually, however, merchants will have to pay at considerably higher rates as no distinction is made, as formerly, between long and short distance cargo and the full tariff duty is levied in every case, no "arrangements" being permitted.
The new system, which at first sight would appear to be an honest attempt to simplify the previous complicated method of internal taxation and as such of benefit to all concerned, has aroused opposition on the part of merchants throughout the province. Introduced almost without notice at the Chinese New Year (February 1904), it caused a general cessation of business in all the principal cities, merchants at Wuchow, Nanning, and Kueiliu, and other places, refusing to open their shops for the new year, and persisting in their refusal for over a month, until the authorities consented to make substantial modifications in the tariff.
The principal ground for objection, as explained to me by some of the leading merchants here, is that the new tariff, "pu fen yuan chin," makes no distinction between goods sent to a distance and goods consumed locally: a parcel of shirtings imported for sale in the Wuchow district pays the same as a parcel destined for Nanning; firewood from Tenghsien, 30 miles up-river, is taxed as heavily as firewood from Liuchow, 150 miles away.
When I pointed out that in almost all foreign countries duties were levied in the same manner, and that this was in fact the principle adopted in the case of transit pass cargo, the payment of a lump sum down to free goods from all further charges being surely to the merchant's advantage, they unanimously admitted that the principle was a ...
[2103 e-1]
This Document is the Property of His Britannic Majesty's Government.] 463
CHINA TRADE.
CONFIDENTIAL.
No. 1.
C.0.
[August 30705
SECTION
Acting Consul Fox to the Marquess of Lansdowne.-(Received August 5.)
5]
RECE
1Pro 2 SEP 04/
Wuchow, June 30, 1904.-
(No. 10.) My Lord,
BY direction of His Majesty's Minister in Peking, I have the honour to forward to your Lordship copy of the political and commercial suminaries forming part of my last Intelligence Report, dated the 4th instant.
I have, &c.
(Signed) HARRY M. FOX.
Inclosure in No. 1.
Wuchow Intelligence Report, February 1 to May 31, 1904.
AN important innovation affecting internal taxation in this province was introduced li-kin by the Provincial Government at the Chinese New Year. By a stroke of the pen, was declared to be abolished, and a new system, called "Pai Huo T'ung Shui," a collec- tive tax on all merchandize, substituted in its place. The new Regulations, which have undergone considerable changes since they were first issued, are, as such Regulations are wont to be in China, extremely complicated. The gist of them is shortly as follows:-
The old system of collecting dues on merchandize circulating in the province at the various barriers en route--it is mentioned that these barriers are fifty-three in number--- is done away with, and instead, goods entering the province pay one duty at the first Customs station, which frees them from all further charges, and goods originating in the province similarly pay one duty at the first station passed on their way to their destina- tion. All goods, however, are liable to inspection at certain examination stations, of which seventeen, situatod for the most part on the West River and its tributaries, are enumerated; and heavy fines, with confiscation of goods, are provided for cases where the quantity or marks do not correspond with the original duty Memo. This, of course, makes sales en route impossible. All extra charges whatsoever are abolished, and the salaries of the officials entrusted with the collection are fixed. Certain special taxes are retained, such as the frontier defence tax levied at Mengkong, and the military escort tas hitherto collected at Hsunchow. The new duties, except in the case of opium and salt, are based on and similar to the old li-kin tariff. Actually, however, merchants will have to pay at considerably higher rates as no distinction is made, as formerly, between long and short distance cargo and the full tariff duty is levied in every case, no "arrangements" being permitted. The new system, which at first sight would appear to be an honest attempt to simplify the previous complicated method of internal taxation and as such of benefit to all concerned, has aroused opposition on the part of merchants throughout the province. Introduced almost without notice at the Chinese New Year (February 1904), it caused a general cessation of business in all the principal cities, merchants at Wuchow, Nanning, and Kueiliu, and other places, refusing to open their shops for the new year, and persisting in their refusal for over a month, until the authorities consented to make substantial modifications in the tariff. The principal ground for objection, as explained to me by some of the leading merchants here, is that the new tariff, "pu fen yuan chin," makes no distinction between goods sent to a distance and goods consumed locally: a parcel of shirtings imported for sale in the Wuchow district pays the same as a parcel destined for Nanning; firewood from Tenghsien, 30 miles up-river, is taxed as heavily as firewood from Liuchow, 150 miles
away.
When I pointed out that in almost all foreign countries duties were levied in the same manner, and that this was in fact the principle adopted in the case of transit pass cargo, the payment of a lump sum down to free goods from all further charges being surely to the merchant's advantage, they unanimously admitted that the principle was a
[2103 e-1]
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