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10
On the 2nd April, 1898, His Majesty's Consul-General at Tien-tsin reported that the long-pending scheme for the improvement of the river had at length reached a stage at which the sanction of the Tsung-li Yamên on the one hand, and that of Her Majesty's Minister and of the other foreign Representatives in Peking on the other, were alone wanting to enable the work to be proceeded with without further delay. There were two main questions to be determined :-
1. What was necessary to be done to improve the river; and
2. How the necessary expenses were to be met.
The first question was referred to a Danish engineer, M. de Linde, who made three proposals, which were as follows:---
1. To close the canals which had been dug by the Chinese authorities between Tien-tsin and the sea.
2. To train the river in certain places.
3. To make cuttings in two places.
The third proposal met with so much opposition from the Viceroy that it was abandoned, so the scheme of 1898 consisted merely of the other two.
The second question was the raising of funds for the proposed undertaking. It was unhesitatingly admitted that the Chinese Government was responsible for keeping the river navigable, and that it was incumbent on it to provide the funds, but it was represented that there was at that time no source from which the necessary expenditure could be drawn.
In other countries funds for such purposes would be raised by a levy on the shipping frequenting the port, and probably by a tax on imports and exports, but owing to the nature of the Treaties between China and foreign Powers, the Chinese Government were altogether precluded from resorting to a method of this nature. M. de Linde estimated the sum required at 250,000 taels, and the Viceroy agreed that if foreigners would in some way provide for 150,000 taels his Excellency would give 100,000 taels,
The Consular Body, the Chamber of Commerce, and other persons interested, eventually agreed that the money should be raised by a loan secured on a levy of three tael cents a-ton on all shipping of foreign type frequenting the port, and by contributions from the other interests chiefly concerned--namely, the foreign Concessions actually in existence and those about to be established, and the Taku Tug and Lighter Company. Before, however, such a scheme could be entertained, it was essential that the consent of the large local Shipping Companies should be secured, and this consent was after some negotiations obtained,
The whole scheme for the raising of funds was laid before a meeting of the Land-renters of the British Concession on the 12th October, 1897, and a vote for taxing land in the Concession was carried unanimously. The French municipality also passed a resolution sanctioning the proposed contribution of the French Concession, and the Consul for Germany and the Taku Tug and Lighter Company also agreed, the one to levy at the same rate as that on land in the British Concession when the German Concession was established, and the other to the contribution proposed for the Company. After some further delay and discussion, the Viceroy virtually accepted the whole scheme and the proposals.
On the 3rd February, 1898, however, at a meeting of the Consular Body, it was positively asserted by members of the Consular Body that no such levy of the nature proposed could be imposed on shipping by the Ministers of the countries they represented without reference to their home Governments. This would naturally have caused very great delay.
A proposal was, however, put forward by the Belgian Consul that the service of the loan for 150,000 taels should be met by the levy of wharfage dues. This proposal from the first met with almost universal acceptance. The plan was as follows:-
The consent of the Chinese authorities had first to be obtained so that all goods landed by Chinese outside the Concession should be included. This consent, subject to the sanction of the Tsung-li Yamên, was given by the Viceroy verbally and without hesitation.
It was necessary, so far as the British and French Concessions were concerned, that the levy should be made by Resolutions passed at special meetings of the Land-renters of the two Concessions, and the levy should, as regards the Concessions, be made a municipal tax. This was done at a meeting of the French municipality on the 22nd March, 1898, and at a meeting of the Land-renters of the British Concession held on the 21st March the two motions proposed were carried unanimously. Objections of Russian merchants were met by accepting the following revised Tariff regarding tea :-
** On foreign imports and native exports On native imports On the following goods special rates are charged :-- Green and black tea 1 per cent. on full duty, i.e., 1 tael per 100 taels full duty. 2 per cent. on half duty, i.e., 1 tael per 100 taels full duty. 0.0125 tael per 100 taels full duty. Green and black tea in transit to Russia 0.008 tael per picul. Brick tea Brick tea in transit to Russia 0.004 tael per picul. Opium 0.002 tael per picul. All goods, stores, &c., for Government use 0.3 tael per picul. to be free.It was quite clear that the Land-renters of the British Concession had under the Land Regulations a right to levy wharfage dues up to one-tenth of 1 per cent. on all cargo landed on the Concession wharves; but His Majesty's Consul at Tien-tsin thought it doubtful whether they had the power to expend money so obtained outside the Concession. He stated that it was believed that, by obtaining the consent of all the foreign Representatives in Peking to the scheme then put forward for a limited period and for a special purpose all chance of any future objections would be avoided.
His Majesty's Consul stated that there was no doubt that under the Order in Council His Majesty's Minister has power to sanction the expenditure.
The Tariff was drawn up on the basis of figures supplied by the Commissioner of Customs. It was proposed that the loan, for which bonds were to be issued, should be paid off in twelve years, though it was possible that, in view of the reduction of the contribution from tea, that limit might be exceeded. The rate of interest was fixed at 6 per cent. per annum. The management and working of the whole scheme was to be in the hands of the Customs Taotai and the Senior Consul, assisted by the Commissioner of Customs, who would have charge of the finances. M. de Linde was to be the engineer of the work.
It will be seen from the Tariff that the wharfage dues it was proposed to levy were very trifling, amounting approximately to but per mille of the value of the bulk of the trade, and very much less in the special cases of tea and opium,
The calculation was made on the basis of 1 per cent. on the import and export duties, which again are taken to be 5 per cent. ad valorem. It was not determined what authority was actually to issue the loan. From a verbal communication made by the Customs Taotai to the Senior Consul it appeared possible that the Chinese authorities might guarantee the loan on the security of the wharfage dues; if not, it might be issued by one or other of the banks or by one of the municipalities.
On the 29th June, 1898, His Majesty's Consul at Tien-tsin forwarded copy of Minutes of a special meeting of the Land-renters of the British Concession (held on the 25th June), containing the Resolution authorizing the British Municipal Council to raise a loan of 150,000 taels on the security of the wharfage dues scheme. The Resolution was passed by a unanimous vote. The Hong Kong and Shanghae Banking Corporation consented to advance the 150,000 taels at once on the municipal bonds, which were, however, to be disposed of to the public as demanded. The collateral security offered by the municipality consisted of land in the British municipal extension, but not of the ground rents or fees, which were already mortgaged to secure a loan of 10,000 taels, this loan to be paid off in two or three years.
On the 12th July Sir C. MacDonald approved the raising of the loan of 150,000 taels under the conditions of the above Resolution,
The work began in the autumn of 1898, and was nearly finished in the spring of 1900, but when the Boxer troubles began nearly all the works were destroyed.
On the 20th June, 1901, His Majesty's Consul-General, as doyen of the Consular Body at Tien-tsin, asked the doyen of the Diplomatic Body at Peking for the approval of the foreign Representatives to the proposition to double the existing river dues in order to raise the necessary funds for the work, and in view of the offer made by General
[2105 n-2]
683
10
On the 2nd April, 1898, His Majesty's Consul-General at Tien-tsin reported that the long-pending scheme for the improvement of the river had at length reached a stage at which the sanction of the Tsung-li Yamên on the one hand, and that of Her Majesty's Minister and of the other foreign Representatives in Peking on the other, were alone wanting to enable the work to be proceeded with without further delay. There were two main questions to be determined :-
1. What was necessary to be done to improve the river; and
2. How the necessary expenses were to be met.
The first question was referred to a Danish engineer, M. de Linde, who made three proposals, which were as follows:---
1. To close the canals which had been dug by the Chinese authorities between Tien-tsin and the sea.
2. To train the river in certain places.
3. To make cuttings in two places.
The third proposal met with so much opposition from the Viceroy that it was abandoned, so the scheme of 1898 consisted merely of the other two.
The second question was the raising of funds for the proposed undertaking. It was unhesitatingly admitted that the Chinese Government was responsible for keeping the river navigable, and that it was incumbent on it to provide the funds, but it was represented that there was at that time no source from which the necessary expenditure could be drawn.
In other countries funds for such purposes would be raised by a levy on the shipping frequenting the port, and probably by a tax on imports and exports, but owing to the nature of the Treaties between China and foreign Powers, the Chinese Government were altogether precluded from resorting to a method of this nature. M. de Linde estimated the sum required at 250,000 taels, and the Viceroy agreed that if foreigners would in some way provide for 150,000 taels his Excellency would give 100,000 taels,
The Consular Body, the Chamber of Commerce, and other persons interested, eventually agreed that the money should be raised by a loan secured on a levy of three tael cents a-ton on all shipping of foreign type frequenting the port, and by contributions from the other interests ebiefly concerned--namely, the foreign Concessions actually in existence and those about to be established, and the Taku Tug and Lighter Company. Before, however, such a scheme could be entertained, it was essential that the consent of the large local Shipping Companies should be secured, and this couzent was after some negotiations obtained,
The whole scheme for the raising of funds was laid before a meeting of the Land- renters of the British Concession on the 12th October, 1897, and a vote for taxing land in the Concession was carried unanimously. The French municipality also passed a resolution sanctioning the proposed contribution of the French Concession, and the Consul for Germany and the Taku Tug and Lighter Company also agreed, the one to levy at the same rate as that on land in the British Concession when the German Concession was established, and the other to the contribution proposed for the Company. After some further delay and discussion, the Viceroy virtually accepted the whole scheme and the proposals.
On the 3rd February, 1898, however, at a meeting of the Consular Body, it was positively asserted by members of the Consular Body that no such levy of the nature proposed could be imposed on shipping by the Ministers of the countries they represented without reference to their home "Governments. This would naturally have caused very great delay.
A proposal was, however, put forward by the Belgian Consul that the service of the loan for 150,000 taels should be met by the levy of wharfage dues. This proposal from the first met with almost universal acceptance. The plan was as follows:-
The consent of the Chinese authorities had first to be obtained so that all goods landed by Chinese outside the Concession should be included. This consent, subject to the sanction of the Tsung-li Yamên, was given by the Viceroy verbally and without hesitation.
It was necessary, so far as the British and French Concessions were concerned, that the levy should be made by Resolutions passed at special meetings of the Land- renters of the two Concessions, and the levy should, as regards the Concessions, be made a municipal tax. This was done at a meeting of the French municipality on the 22nd March, 1898, and at a meeting of the Landreuters of the British Concession held on
11
the 21st March the two motions proposed were carried unanimously. Objections of Russian merchants were met by accepting the following revised Tariff regarding
tea :-
Ou foreign imports and native exports On native imports
**
On the following goods special rates are
charged :--
Green and black tea
1 per cent, on full duty, ie, 1 tuel per
100 tuels full duty.
2 per cent. on half duty, ie, 1 tael per
100 taels full duty.
0.0125 tacl per 100 taels full duty.
Green and black tea in transit to Russia 0-008 tael per picul. Brick tea
Brick tea in transit to Russia
Opium
All goods, stores, &c., for Government use
to be free.
0.004 tael per picul.
0.002 tael per picul.
0-3 tael per picul.
It was quite clear that the Landrenters of the British Concession had under the Land Regulations a right to levy wharfage dues up to one-tenth of 1 per cent. on all cargo landed on the Concession wharves; but His Majesty's Consul at Tien-tsin thought it doubtful whether they had the power to expend money so obtained outside the Concession. He stated that it was believed that, by obtaining the consent of all the foreign Representatives in Peking to the scheme then put forward for a limited period and for a special purpose all chance of any future objections would be avoided.
His Majesty's Consul stated that there was no doubt that under the Order in Council His Majesty's Minister has power to sanction the expenditure.
The Tariff was drawn up on the basis of figures supplied by the Commissioner of Customs. It was proposed that the loan, for which bonds were to be issued, should be paid off in twelve years, though it was possible that, in view of the reduction of the contribution from tea, that limit might be exceeded. The rate of interest was fixed at 6 per cent. per annum. The management and working of the whole scheme was to be in the hands or the Customs Taotai and the Senior Consul, assisted by the Commis- sioner of Customs, who would have charge of the finances. M. de Linde was to be the engineer of the work.
It will be seen from the Tariff that the wharfage dues it was proposed to levy were very trifling, amounting approximately to but per mille of the value of the bulk of the trade, and very much less in the special cases of tea and opium,
The calculation was made on the basis of 1 per cent, on the import and export duties, which again are taken to be 5 per cent. ad valorem. It was not determined what authority was actually to issue the loan. From a verbal communication made by the Customs Taotai to the Senior Consul it appeared possible that the Chinese authorities might guarantee the loan on the security of the wharfage dues; if not, it might be issued by one or other of the banks or by one of the municipalities.
On the 29th June, 1898, His Majesty's Consul at Tien-tsin forwarded copy of Minutes of a special meeting of the Landrenters of the British Concession (held on the 25th June), containing the Resolution authorizing the British Municipal Council to raise a loan of 150,000 taels on the security of the wharfage dnes scheme. The Resolution was passed by a unanimous vote. The Hong Kong and Shanghae Banking Corporation consented to advance the 150,000 taels at once on the municipal bonds, which were, however, to be disposed of to the public as demanded. The collateral security offered by the municipality consisted of land in the British municipal extension, but not of the ground rents or fens, which were already mortgaged to secure a loan of 10,000 taels, this loan to be paid off in two or three years.
On the 12th July Sir C. MacDonald approved the raising of the loan of 150,000 taels under the conditions of the above Resolution,
The work began in the autumn of 1898, and was nearly finished in the spring of 1900, but when the Boxer troubles began nearly all the works were destroyed.
On the 20th June, 1901, His Majesty's Consul-General, as doyen of the Consular Body at Tien-tsin, asked the doyen of the Diplomatic Body at Peking for the approval of the foreign Representatives to the proposition to double the existing river dues in order to raise the necessary funds for the work, and in view of the offer made by General
[2105 n-2]
E
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