(This Document is the Property of His Britannic Majesty's Government)
468
CHINA TRADE,
CONFIDENTIAL
[August 15.]
SECTION 2.
It is unlikely, in my opinion, that His Majesty's Government will assent to a portion of the Customs revenue being diverted to any other purpose than those stipulated in Article 6 of the Protocol. Moreover, the present proposals of the Chinese Government do not, in my view, offer the same guarantees for the proper execution of the necessary works as those which the Chinese Government accepted in 1901.
Under these circumstances, while transmitting to my Government a copy of your Highness' note under reply, I am unable to recommend to them the adoption of the proposals which it contains.
I avail, &c. (Signed) E. SATOW.
No. 1.
Sir E. Satow to the Marquess of Lansdowne,—(Received August 15.)
(No. 222.)
Peking, June 19, 1904.
My Lord,
I HAVE the honour to transmit to your Lordship herewith a copy of an Intelligence Report for the period from the 1st January to the 24th May, which I have received from the British Acting Consul at Chungking,
I have, &c. (Signed) ERNEST SATOW.
Your Imperial Highness,
Inclosure 2 in No. 1.
Mr. Conger to Prince Ching,
Peking, June 21, 1904.
I HAVE the honour to acknowledge the receipt of your Imperial Highness' note of the 9th instant, inclosing a proposition for the Conservancy of the Whangpu River which the Chinese Government desires to substitute for the arrangement agreed to by China and the Powers in the Final Protocol of September 1901, and contained in Annex 17 thereto.
For three years the Chinese Government has been repeatedly urged by the Representatives of the Signatory Powers to appoint the Chinese member which it has the privilege of appointing under Article 4 (h) of Annex 17, in order that the work arranged for by the Protocol might be begun, and several times I have been personally assured by your Highness and other members of the Wai Wu Pu that the said appointment would be speedily made,
Of course, your Imperial Highness is well aware that a change in the Protocol or the adoption of any new plan must be unanimously accepted by all the Signatory Powers. In their present form I fear the proposals of the Chinese Government will not meet with unanimous approval, and the presentation of them must necessarily cause great delay. The Chinese Government can hardly expect that the Powers will consent to the appropriation for this purpose of any portion of the Customs revenue, which is already wholly pledged to the payment of foreign loans and indemnities, or agree to its diversion to any other purpose than that stipulated in Article 6 of the Protocol.
Besides, the proposals now made, in my judgment, do not offer the same guarantees for the faithful execution of the necessary works as those which were agreed to by China and the Powers in 1901.
Propositions similar to these were some time since made to me verbally by one of the Ministers of your Board, and I replied that until the Chinese Government evidenced its intention to carry out the provisions of Article 4 (h) of Annex 17, by appointing its member of the Conservancy Board, I could not entertain any proposition whatever for a change in the plan already agreed upon.
But, since the proposals have come to me in a formal manner, I will, as your Imperial Highness requests, transmit them at once to my Government. Under present circumstances, however, I am unable to recommend their adoption.
I avail, &c.
Inclosure in No. 1.
Extract from Chungking Intelligence Report, January 1 to date.
Li-kin.
THE Viceroy, through his henchman, the Chief of the Head Li-kin Office at Chengtu, Liu Tsung Tai, has during the last two or three months made it perfectly clear that he is determined to obtain every quota of li-kin available; nor are the sums collected to find their way in such large proportions as formerly into the pockets of the subordinate officials collecting them. Almost the first official to suffer locally was his Excellency the Taotai, who was charged with want of energy in prosecuting the li-kin collection, and was eventually transferred temporarily to the Chufan Nan circuit. (See "Official Changes.”) Subsequently, the four officials in charge of the export li-kin (Hsin Li-chin) offices situated-- (1) in the city; (2) at Hsiang K'uo Ssu, on the Little River; (3) at Tang Chia T'o, 30 li below Chungking; and (4) at Hui Lung Ssu, the same distance above--were, one and all, discharged and replaced by officers specially sent from Chengtu, the Taotai here having expressed himself unable to find on the spot men of sufficient ability to satisfy the Viceroy's requirements.
Two Proclamations bearing on this subject have appeared: the first, which was posted on the 28th March, had for its object the diversion of the export duty on opium emanating from Fuchou from the hands of the foreign Customs at Chungking into those of the li-kin authorities. Fuchou is the mart for the drug produced in the rich districts of Liangshan and Fengtu, and is distant on the up-river trip from seven to ten days from Chungking. It has in the past been the practice of the li-kin officials to issue to purchasers of opium in the interior, who had duly notified their intention to bring the commodity to Chungking for export through the Imperial Maritime Customs, passes exempting them from any payment to the li-kin offices other than the provincial li-kin of 5.28 taels. The Proclamation in question, while expressing surprise that merchants, unless moved by some desire to evade li-kin, should subject the drug to the long up-river journey from Fuchou to Chungking, to there ship it through the foreign Customs, took especial care to lay stress on the fact that, in future, the passes hitherto issued by the li-kin officials would cease. Further, that the buyer in the interior, unless furnished with a transit pass ("Tzu K'ou Ping Chu") granted by the Imperial Maritime Customs, would be compelled to pay his export duty and li-kin to the li-kin authorities, i.e.—"robbing Peter" the Imperial Government, "to pay Paul"--the provincial. The scheme, too, if carried into effect, would, apart from its adverse influence on the revenue of the foreign Customs, have been a bitter blow to the principal shipping firms engaged in the carrying trade by chartered junk, namely, Messrs. Butterfield and Swire, Messrs. Jardine, Matheson and Co., and the China Merchants' Steam Navigation Company. The last would have suffered most, and lost little time in petitioning the Commissioner of Customs to exert himself to assist them. At the same time Messrs. Jardine, Matheson, and Co.'s agent appealed to me to see to it that no privilege should be given to the China Merchants which did not also apply to them--a somewhat unnecessary request. The Commissioner represented the matter.
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(This Document is the Property of His Britannic Majesty's Governeleng
468
CHINA TRADE,
CONFIDENTIAL
[August 15.]
SECTION 2.
It is unlikely, in my opinion, that His Majesty's Government will assent to a portion of the Customs revenue being diverted to any other purpose than those stipulated in Article 6 of the Protocol. Moreover, the present proposals of the Chinese Government do not, in my view, offer the same guarantees for the proper execution of the necessary works as those which the Chinese Government accepted in 1901.
Under these circumstances, while transmitting to my Government a copy of your Highness' note under reply, I am unable to recommend to them the adoption of the proposals which it contains.
I avail, &c. (Signed)
E. SATOW.
No. 1.
Sir E. Satow to the Marquess of Lansdowne,—(Received August 15.)
(No. 222.)
Peking, June 19, 1904. My Lord,
I HAVE the honour to transmit to your Lordship herewith a copy of an Intelligence Report for the period from the 1st January to the 24th May, which I have received from the British Acting Consul at Chungking,
I have, &c. (Signed) ERNEST SATOW.
Your Imperial Highness,
Inclosure 2 in No. 1.
Mr. Conger to Prince Ching,
Peking, June 21, 1904. I HAVE the honour to acknowledge the receipt of your Imperial Highness' note of the 9th instant, inclosing a proposition for the Conservancy of the Whangpu River which the Chinese Government desires to substitute for the arrangement agreed to by China and the Powers in the Final Protocol of September 1901, and contained in Annex 17 thereto.
For three years the Chinese Government has been repeatedly urged by the Repre- sentatives of the Signatory Powers to appoint the Chinese member which it has the privilege of appointing under Article 4 (h) of Annex 17, in order that the work arranged for by the Protocol might be begun, and several times I have been personally assured by your Highness and other members of the Wai Wa Pu that the said appointment would be speedily made,
Of course, your Imperial Highness is well aware that a change in the Protocol or the adoption of any new plan must be unanimously accepted by all the Signatory Powers. In their present form I fear the proposals of the Chinese Government will not meet with unanimous approval, and the presentation of them must necessarily cause great delay. The Chinese Government can hardly expect that the Powers will consent to the appro- priation for this purpose of any portion of the Customis revenue, which is already wholly pledged to the payment of foreign loans and indemnities, or agree to its diversion to any other purpose than that stipulated in Article 6 of the Protocol.
Besides, the proposals now made, in my judgment, do not offer the same guarantees for the faithful execution of the necessary works as those which were agreed to by China and the Powers in 1901.
Propositions similar to these were some time since made to me verbally by one of the Ministers of your Board, and I replied that until the Chinese Governinent evidenced its intention to carry out the provisions of Article 4 (h) of Annex 17, by appointing its member of the Conservancy Board, I could not entertain any proposition whatever for a change in the plan already agreed upon.
I will, as your Under present
But, since the proposals have come to me in a formal manner, Imperial Highness requests, transmit them at once to my Government. circumstances, however, I am unable to recommend their adoption.
I avail, &c.
Inclosure in No. 1.
Extract from Chungking Intelligence Report, January 1 to date.
Li-kin.
THE Viceroy, through his henchman, the Chief of the Head Li-kin Office at Chengtu, Liu Tsung Tai, has during the last two or three months made it perfectly clear that he is determined to obtain every quota of li-kin available; nor are the sums collected to find their way in such large proportions as formerly into the pockets of the subordinate officials collecting them. Almost the first official to suffer locally was his Excellency the Taotai, who was charged with want of energy in prosecuting the li-kin collection, and was eventually transferred temporarily to the Chufan Nan circuit. (See " Official Changes.”) Subsequently, the four officials in charge of the export li-kin (Hsin Li-chin) offices situated-- (1) in the city; (2) at Hsiang K'uo Ssu, on the Little River; (3) at Tang Chia T'o, 30 li below Chungking; and (4) at Hui Lung Ssu, the same distance above--were, one and all, discharged and replaced by officers specially sent from Chengtu, the Taotai here having expressed himself unable to find on the spot men of sufficient ability to satisfy the Viceroy's requirements.
Two Proclamations bearing on this subject have appeared: the first, which was posted on the 28th March, had for its object the diversion of the export duty on opium emanating from Fuchou from the hands of the foreign Customs at Chungking into those of the li-kin authorities. Fuchou is the mart for the drug produced in the rich districts of Liangshan and Fengtu, and is distant on the up-river trip from seven to ten days from Chungking. It has in the past been the practice of the li-kin officials to issue to purchasers of opium in the interior, who had duly notified their intention to bring the commodity to Chungking for export through the Imperial Maritime Customs, passes exempting them from any payment to the li-kin offices other than the provincial ki-kin of 5.28 taels. The Proclamation in question, while expressing surprise that merchants, unless moved by some desire to evade li-kin, should subject the drug to the long up-river journey from Fuchou to Chungking, to there ship it through the foreign Customs, took especial care to lay stress on the fact that, in future, the passes hitherto issued by the li-kin officials would cease. Further, that the buyer in the interior, unless furnished with a transit pass ("Tzu K'ou Ping Chu") granted by the Imperial Maritime Customs, would be compelled to pay his export duty and li-kin to the li-kin authorities, i.e.—" robbing Peter" the Imperial Government, "to pay Paul "--the provincial. The scheme, too, if carried into effect, would, apart from its adverse influence on the revenue of the foreign Customs, have been a bitter blow to the principal shipping firms engaged in the carrying trade by chartered junk, namely, Messrs. Butterfield and Swire, Messrs. Jardine, Matheson and Co., and the China Merchants' Steam Navigation Company. The last would have suffered most, and lost little time in petitioning the Commissioner of Customs to exert himself to assist them. At the same time Messrs. Jardine, Matheson, and Co.'s agent appealed to me to see to it that no privilege should be given to the China Merchants which did not also apply to them--a somewhat unnecessary request. The Commissioner represented the * Printed in "Affairs of China," Section 6, of August 15, 1904.
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