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With regard to Inclosure (B) in the Shanghae letter, concerning the levy of -kin on certain goods belonging to Messrs. Brunner, Mond, and Co. (Limited), a detailed Report on the subject has been called for from His Majesty's Consul at Chinkiang.
Case (E) relates to the difficulties experienced by Mr. Bennertz at Changsha. Prolonged correspondence has taken place between His Majesty's Minister and the Chinese authorities on this subject, which, together with the question whether the walled city of Changsha forms part of the port of that name, is still under discussion between Sir E. Satow and the Chinese Government.
(d) Navigation. The only case to which special reference is made under this heading is the li-kin case which forms the subject of Inclosure (F). As there stated, this case has given rise to a prolonged correspondence with the Taotai and Viceroy. Sir P. Warren reports that he is still engaged in discussing the question with the Viceroy of Nanking, and there is reason to hope that this matter and another of a similar nature may be satisfactorily settled.
Under the heading "Navigation," mention is also made in the Shanghae letter of the fact that, as yet, no steps have been taken to carry out the promised works for the improvement of the Huangpu River, provided for by Annex 17 to the Final Protocol of September 1901. This is, of course, not a case of an evasion by China of the Treaty of 1902, but it is true that considerable delay has taken place in the commencement of the works in question.
Not only were the provisions of the original scheme distasteful to the Chinese authorities, but they did not meet with the approval of a large section of the British and other foreign residents of Shanghae.
When, therefore, the Chinese Government drew up new proposals for a conser- vancy scheme, those proposals were, at the end of last year, considered by the Diplomatic Representatives of the Powers who were parties to the Protocol of the 7th September, 1901. A Committee, consisting of the British, American, French, and German Ministers was appointed, and in due course prepared a counter-draft to the Chinese proposals.
This draft has been accepted by all the foreign Representatives, subject to the approval of their Governments, and was approved by His Majesty's Government in
March last.
Telegraphic inquiries addressed to His Majesty's Minister on the subject on the 26th July last, elicited the reply that one minor point still remains unsettled, but that the foreign Representatives were endeavouring to induce the Wai-wu Pu to meet their wishes in that respect.
The Chinese Government cannot, therefore, be considered wholly responsible for the delay which has taken place, and which has now been terminated by the signature of the new Arrangement. That delay was partly due to the necessity for a careful examination of the fresh scheme put forward and for the consultation in regard to that scheme of the Powers signatories of the Final Protocol.
Having now discussed seriatim the various general headings and the specific instances of complaint contained in the Shangbae letter, it is necessary to turn to the general statement in the original telegram, to the effect that "China ignores the Mackay Treaty, rendering the same ineffective," and to the statement contained in the letter that none of the important provisions of the Treaty are effective or, so far as can be judged, are likely to become effective, within any reasonable time.
Of the fourteen Articles which the Commercial Treaty with China of 1902 contains, the following have been fulfilled since the exchange of ratifications on the 28th July, 1903, or are in process of fulfilment :---
Article I. Drawback certificates.
In regard to this Article, a difference of opinion occurred between the Taotai and His Majesty's Consul-General at Shanghae, but representations were made to the Chinese Government by His Majesty's Legation, which resulted in an understanding being arrived at, and no further complaint has been received.
Article V. Removal of artificial obstructions to navigation in the Canton
River.
Considerable progress has been made towards the fulfilment of this Article. The iron barrier " has been removed, and a channel of 570 feet wide is now open to navigation.
The "bridge" or "wooden barrier" has been entirely removed.
"Taishek Barrier." The channel across this barrier has been widened to 400 feet, and has now 12 feet of water on its northern side and 10 feet on its southern side at low water.
"Cambridge barrier." This channel has now a width of 450 feet, with a minimum depth of 16 feet at low water.
The last report received from Canton on the subject contained the information that the programme of work drawn up by the Imperial Maritime Customs had now been completed.
Article VI. Bonded warehouses.
In December 1903, the Commissioner of Customs communicated to His Majesty's Consul-General at that post copies of the "Bonded Warehouse Proprietors' Bond” then in use. The latter then stated that he had received no applications to bond more warehouses, and that the only ones covered at that time were three in number, all belonging to the China Merchants' Steam Navigation Company.
Commenting on the steps taken to fulfil this Article, Sir E. Satow stated that Shanghae appeared to be the only port where bonded warehouses were required, but be added that there would presumably be no difficulty in extending the existing system, which appeared to meet all practical requirements.
VII. Trade-marks.
On the 18th August, 1904, Sir E. Satow forwarded to the Foreign Oflice a translation of the Provisional Regulations for the registration of trade-marks in China, drawn up by the Board of Commerce in accordance with Article VII of the Commercial Treaty of 1902.
As these Regulations were not found to be satisfactory, the forcign Representa- tives made representations to the Chinese Government, who undertook that no trade- marks should be registered until an agreement had been arrived at as to the amend- ments to be introduced.
Negotiations are still proceeding on the subject, and it cannot be fairly alleged that China has ignored this question or neglected to make proposals for the enactment of a trade-mark law,
Article X. Inland navigation rules and opening of Kongmoon.
Circular instructions with regard to the rules for inland navigation were issued by the Director-General of Imperial Maritime Customs on the 16th September, 1904. Provisional Regulations for carrying out the final clause of Article 8 of the Rules approved by the Wai-wu Pu were issued on the 28th December of the same
year.
The final clause provides that a registered steamer “- may, on making due report to the Customs, land or ship passengers, or cargo at any recognised places of trade passed in the course of the voyage; but may not ply between inland places exclusively except with the consent of the Chinese Government."
The ports of call and passenger stations mentioned in this Article were all opened by the 1st March, 1904, and Kongmoon was opened as a Treaty port on the 7th of that month.
The question of licensing launches to run to Nanning and Posé is still a subject of discussion with the Canton Viceroy.
Article XIV. Interport transport of rice.
After some correspondence with the Chinese authorities, the export of rice was allowed from Chinkiang under certain limitations, which, though contrary to Treaty, were accepted by British merchants.
The inclosed extract,* from a Report by His Majesty's Consul at Kinchiang, gives the facts of the case.
On the 23rd September, 1903, the Governor of Hunan was informed by the Acting British Consul-General at Hankow that a limited permission to Messrs. Jardine, Matheson and Co. and to Messrs. Butterfield and Swire to export rice from Changsha would be accepted as a temporary measure only, and that His Majesty's Government would insist on their Treaty rights.
It should be added that, with regard to the movement of grain and rice, His Majesty's Consular officers in China have standing instructions to report any evasion of the existing prohibitions of the export of rice and grain from their Consular districts, and in the event of any fresh prohibitions being imposed to warn the
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