I have stated above that payment of li-kin has been successfully resisted by shops under the native agents of foreigners; but I know this as a fact only in the cases brought to my knowledge, and I suspect that in many cases the native agents come to an arrangement with the li-kin office.
Now and then foreign firms have tried through their "compradores" to share in the foreign import trade, and whenever the li-kin office has not been arranged with, these attempts are followed by complaints of the levy of li-kin from the native buyers resident in the town.
In the spring of 1902 the Belgian Trading Company, registered in Hong Kong, made such a complaint, and, after considerable correspondence, in which the then Taotai upheld the contention that the nationality, not of the goods, but of the holder, governed the question of liability to li-kin, but declined to take the Wai-wu Pu's opinion on the point, I obtained a private assurance that there would be no further interference with the British firm's native customers, and my last despatch maintaining eur right was left unanswered.
The Belgian Trading Company were satisfied, and have not had to complain since; but at the beginning of February S. J. Guzdar, Parsee dealer, reported that piece-goods sold by him to a native shop had been stopped at the li-kin station, and a mouth later that, while passing another consignment, the li-kin officers had gone to the buyer's shop with a posse of runners and extorted over 22,000 cash of li-kin which the hyer naturally insisted on the seller's refunding to him. The serious part of the case was that other Chinese threatened to throw up their considerable orders for piece-goods unless guaranteed against li-kin enforcements.
I wrote to the Taotai quoting your ruling contained. in your instructions to Mr. Flaherty, but he left my despatches unanswered, sending his deputy to learn my reading of the Treaty. To the deputy and the Viceroy's Secretary, who also raised the question of h-kin, I pointed out that it was absurd to inake the open port less protected against li-kin than the interior for which transit passes were available; and I had once again to prove that the Chefoo Convention proposal on the point was not ratified by His Majesty's Government, while Article VIII of the Treaty of 1902, which made the area of exemption from the consumption tax the foreign concessions, and abolished all distinction of areas as regards imports, has not yet come into force.
M. Guzdar presently told me that bis business was proceeding without further interference, and the Taotai's deputy said the matter bad been arranged after much trouble; but on the 21st instant at 6 P.M. I received from the Taotai the despatch of which copy and translation are inclused.
As he seemed to accept the extraordinary view of the li-kin office that Hankow native town was not a Treaty port, I sent his despatch back with a verbal suggestion that to avoid serious trouble he should reconsider the matter. My messenger returning with a curt reply that, if I had any objections to raise, I should put them in an official reply, I telegraphed to you, and next day sent the Taotai official intimation of what I had done.
In the evening he replied in a note complaining that he had merely sent on the -kin office's report, and that I had taken offence at the innocent act of a newly- appointed officer.
Yesterday he sent his deputy with further explanations and assurances that British merchants should in future have no cause of complaint, although the general -kin office would not consent formally to admit its error. As it seemed better to take the tangible advantage offered, I consented with some reluctance to let his note and despatch and my despatch in reply be withdrawn on receiving a satisfactory reply to my earlier complaints and a promise that the li-kin collected should be refunded to Guzdar,
The reply states that Hankow town is a Treaty port, and in order to display Treaty benefits and consolidate friendly relations the li-kin office has received strict orders to abide by the Treaty without the least variation.
The Taotai is most anxious that I should explain to you that he acted with no evil intention, and that no recurrence of such cases need be apprehended.
I have, &c.
(Translation.)
3
Inclosure 4 in No. 1.
Hankow Tuotai to Consul-General Fraser.
550
March 21, 1905.
Sir,
I HAVE the honour to forward a Report received on the 18th instant from Prefect Yang, Deputy of the Han (k'ou) town li-kin office.
As to the Belgian Trading Company, Mr. Chen, then Manager of the Hankow li-kin office, to whom was referred your despatch of January 1902 with regard to piece goods sold by that British firm to Te Tai Ch'ang and other shops, reported that all the hi-kin was legally leviable, and my predecessor, Superintendent Ts'en, once and again argued in despatches, concluding with those of the 2nd and 17th April, 1902, in which he asked that the old arrangement might be continued.
I have the honour therefore to request that you will be good enough to give order accordingly.
Sir,
I have, &c.
(Seal of Hankow Customs Superintendent.)
Inclosure 5 in No. 1.
Hunkow Li-kin Office to Hunkow Tnotai.
[Undated.]
ON the 11th March this Office was honoured with your despatch forwarding copies of two despatches from His Britannic Majesty's Consul-General, in which he forwarded the British merchant Guzdar's complaint that the li-kin office had insisted on hi-kin being paid on cotton italians and crape lastings purchased from him by Ch'eng Ta-chang and Ch'eng Ho-hsiang, and asked for orders to all barriers to cease demanding k-kin on goods sold by British merchants. You also sent copy of a further letter received while your despatch was being prepared, and called for investigation and report.
Han(kou) town being inland, li-kin has for over forty years been collected on foreign goods. Chinese traders, in obedience to the Regulations, have paid it, and for years the rules have run without change. It is no new system started of late years by this Office.
On foreign goods bought by foreign traders this Office, obeying the Treaty rules, has never levied li-kin,
Ch'eng Ta-ch'ang and Cheng Ho-hsiang are both genuine Chinese firms, not even branches of Guzdar. This Office, finding the goods had passed into Chinese traders' hands in accordance with previous old Regulation, collected inland li-kin. The said foreign firm of Guzdar, having sold the goods to inland Chinese traders, cannot possibly include the question of inland li-kin and make pretexts to get monopoly and fish for gain. As to contracts for delivery of goods between Chinese and foreign traders, each transaction depends on his desire to buy or sell, and excise matters cannot be dragged in so as to usurp authority.
To sum up, when foreign traders buy and sell foreign goods, this official, in con- formity with Treaty provisions, never levies h-kin from the foreign trader; but after they have been delivered to inland Chinese traders, cach province inland naturally has established rules to be followed, with which, of course, the foreign trader has no right to concern himself.
I beg therefore that you will kindly reply to His Britannic Majesty's Consul- General to impress on the Guzdar foreign firm that they need not interfere in the li-kin affairs of Cheng Ta-ch'ang, Cheng Ho-hsiang, or any other Chinese trader.
I have, &c. (Seal of Li-kin Office.)
(Signed)
E. H. FRASER.
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