;
6
Referring to the terms of the cablegram, it is first of all charged that China ignores the recent British Commercial Treaty. This statement would appear to be proved by the fact that now, nearly three years after the signing of the Treaty, none of the portant provisions of the same are effective, or, so far as can be judged, are likely to become effective within any reasonable time. Such being the case, it is felt we are warranted in the assertion that China ignores the Treaty, rendering same ineffective." The cablegram goes on to affirm that China actively opposes the Treaty stipulations with regard to :--
(a.) Currency;
(6.) Mining;
(c.) Taxation;
(d.) Navigation.
Taking up these in detail, we would remark as follows:-
(a.) Currency-China undertook in Article II to establish a uniform currency throughout the Empire. Instead of adopting a policy making for the carrying out of this clause of the Treaty, independent mints have been established iu all the leading provinces. The coin struck in these mints are not of uniform value, and in some cases are not accepted at face value beyond the boundaries of the provinces in which the same are minted.
Furthermore, many of the coins are of a debased metal, and are not intrinsically worth their face value.
In the opinion of the best judges this course of action will not improbably bring about a financial crisis in the country, which in its turn will work serious havoc with British trade. The multiplication of these mints increases the difficulty of the estab- lishment of a uniform national currency as provided for in the Treaty. Large provincial Governments are now dealing with the matter of currency as if it were entirely a local question. Whatever may be the opinion of the Chinese Government on the question, it is certain that no definite action has been taken with a view to introducing a uniform
into the Empire. currency
(b.) Mining.-The Chinese Government entered into a solemu engagement to "initiate and conclude within one year from the signing of the Treaty" a series of mining laws based upon the established Western procedure. These laws should have been in force in September, 1903, but there is still no sign of such Regulations as will conform to the requirements of the Treaty. On the contrary, the various Provincial Governments are issuing Regulations of their own, all of which are of such a nature as to prevent foreign capital being invested in the mines of the Empire. Attention is called to the letter published in the North China Daily News," in which the British Consul states that British subjects are only allowed to obtain permits to mine muder Regulations issued by the Wai-wu Pu. As no Regulations have been agreed on between the Wai-wn Pu and the foreign Ministers, it is evident that British subjects are still unable to open mines in China. (See Inclosure A.)
(c.) Taxation ---Although it was provided that Article VIII of the Treaty was not to come into force until all the other Treaty Powers had agreed thereto, China, never- theless, recognizing certain "fundamental principles," engaged herself to reform and systematize her taxation, as far as merchandize is concerned. Instead of initiating reform in this direction, such taxation is becoming more onerous. The restrictions upon foreign trade are becoming more pronounced than before the signing of the Treaty. There are instances in which the transit passes are not respected. (Sec Inclosure B.)
Under various pretexts goods covered by the same are made to pay heavy local taxation collected at li-kin stations, but called by names other than li-kin. (See Inclosure C.) There are also cases of differential taxation as between British and Chinese merchants, and in favour of the latter. (See Inclosure D.) The opening of ports to British trade has been strongly opposed by the Chinese Government, as, for instance, Changsha. As a consequence of this opposition British goods are refused admittance except upon the payment of l-kin and other taxes. (See Inclosures E and C.)
The undertaking on the part of the Chinese Government to abolish li-kin is open to the strongest suspicion, as is witnessed by the fact of an Imperial loan issued this year (1905) for 1,000,000, the security for which is the li-kin revenue of the Province of Shansi. The loan runs for a period of twenty years; from which it
7
244
would appear that for the next twenty years the old custom is to be continued either under the old or some new name.
(d.) Navigation.-The conservancy of the Huangpu was agreed to before the signing of the Treaty. Every possible pressure has since been brought to bear upon the authorities by the Municipal Council and the commercial bodies of Shanghac with a view to the commencement of this important work, but the first steps towards this object have yet to be taken. There is also evident a great reluctance on the part of the Chinese officials to allow the free use of inland waters to vessels carrying a foreign flag. (See Inclosure F.)
In general, there is no question that the Chinese Government, and the officials throughout the Empire, are now more obstructive in their treatment of British subjects and trade than formerly, and there is no evidence of any endeavour to carry out either the spirit or the letter of the Treaty. In view of the above facts, the cablegram referred to has been forwarded to your Lordship with the earnest hope that the British Government will thoroughly investigate the matter and bring such pressure to bear upon the Chinese Government as to insure the Treaty becoming fully and immediately operative. As matters now stand, not only are British commercial interests suffering, but British prestige as well.
We have, &c. (Signed) JARDINE, MATHESON, AND Co.
(And other signatures.)
Inclosure 2 in No. 1.
British Merchants to the Marquess of Lansdowne.
(Telegraphic.)
[Undated.] BRITISH merchants draw Government's attention to fact China ignores Mackay Treaty, rendering same ineffective. In most essentials, China actively opposes currency, mining, taxation, navigation stipulations. Beg British Government insist on Treaty being made immediately operative.
Inclosure 3 in No. 1.
(Signatures follow.)
(A.)-The British Government and the Mackay Treaty.
THE following correspondence will illustrate the present position of the Mackay Treaty with reference to its mining clause, and will prove that the Treaty is not effective.
A British merchant in Shanghae, who owns some mining land in China and wishes to develop same, wrote to his Consul in the district concerned, immediately upon the receipt of Reuter's telegram in which Earl Percy informed the public that the Govern- ment had no idea that the Mackay Treaty was ineffective, calling the Consul's attention to this statement of the Government in the House of Commons, and asking whether he was now in a position to demand a permit for the opening of this mine. A reply was received on Monday.
[In the following letters all names have been, for obvious reasons, for the present suppressed.]
"Dear Sir,
"British Consulate,
190
"I beg to acknowledge receipt of your letter of the 6th instant, inquiring whether you can count upon Consular support in demanding a permit to work mines in
"The position, as regards the Treaty rights of British subjects to buy land or work mines in the interior of China, was fully stated in a private letter which I addressed to you on the 5th December, 1904, and to which I would ask you to refer. Sir Ernest Satow has informed me that he regards the interpretation of the Mackay Treaty given by me in that letter as entirely correct."
No comments yet.
Private notes are available after approval.