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This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
C.O.
37575 September 25.]
IREC TREC 2000 05
SECTION 5.
Sir E. Satou to the Marquess of Lansdowne,~(Received September 25.)
(No. 259.) My Lord,
Peking, July 20, 1905. WITH reference to your Lordship's despatch No. 226 of the 5th August, 1903, I have the honour to inform you that, on the 20th April, 1904, I received, through His Majesty's Consul at Foochow, a protest from Messrs. Jardine, Matheson, and Co. against the amount of wharfage dues, viz., 2 per cent. on the customs dues, they were called upon to pay at Santuao.
On the 15th September, 1904, I received a further despatch from Mr. Brady informing me that, at his request, the Commissioner of Customs at Santuao had furnished him with a copy of the accounts of the Harbour Improvement Works. From an examination of these it appears that since 1899 the receipts had amounted to 18,245 dollars, and the expenditure to 8,392 dollars, while no new works of importance appeared to be in contemplation. This left a balance of 9,853 dollars, which by the 31st July, 1904, must have increased to 10,000 dollars or more, which, if properly invested, would provide ample revenue, in Mr. Brady's opinion, for the maintenance of the work already carried out.
I therefore, on the 12th October, 1904, addressed a note to the Foreign Board, in which I drew attention to these facts, and suggested that, as the interest from the surplus in hand would suffice, in lis Majesty's Consul's opinion, to keep the existing works in a proper state of repair, the levy of dues might now cease, as contemplated at the time they were originally agreed to.
On the 7th May last, I received an answer from the Board informing me that they had communicated with the Tartar General at Foochow on the subject. The Tartar General stated that 8,000 dollars of the surplus had been invested with the Hong Kong and Shanghae Bank at 4 per cent, while the rest was devoted to meeting the cost of current repairs; the income permanently available for the upkeep of the works was therefore only 320 dollars, which, in his opinion, ought to be supplemented by wharfage dues of not less than 1 per cent, of the duty levied on imports and exports. The Board asked for my assent to this proposal.
I communicated this proposal to His Majesty's Consul at Foochow, who, after visiting Santuao, reported that he considered that dues amounting to 4 per cent. would be sufficient for the purpose for which they were to be applied, which also was the view of Messrs. Jardine, Matheson, and Co.
On the 15th June I therefore informed the Foreign Board that, while I was not able to accept the 1 per cent. rate, I was prepared to recommend to His Majesty's Government a levy at the rate of per cent.
On the 22nd June I received a further answer from the Board, stating that they were informed by the Tartar General that Messrs. Jardine, Matheson, and Co. were willing to pay dues at the rate of 1 per cent., pointing out what a light burden such a levy would be, and again asking me to agree to it.
To this I rejoined, on the 26th June, that the Tartar General had been mis- informed as to Messrs. Jardine, Matheson, and Co.'s attitude, and intimated that, in case the Chinese held out for more than per cent., I should be obliged to request them to conform to the original Agreement of 1899 and stop the levy in toto.
On the 2nd instant the Board replied stating that, as it appeared that, by the exercise of economy, it would be possible to reduce the levy to per cent., and still cover expenses, they accepted this arrangement. They asked me to direct the merchants to pay at this rate, and to inform His Majesty's Government of what had passed.
On the 6th instant I formally accepted this settlement.
Jin
I have, &e. (Signed) ERNEST SATOV
sien
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