This Document is the Property of His Britannic Majesty's Government.] 201
AFFAIRS OF CHINA.
CONFIDENTIAL.
C.O.
19974
[May 4.]
SECTION 5.
RECE
REG 5 JUN 07
No. 1.
[14419]
(No. 144.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received May 4.)
Peking, March 20, 1907. IN my telegram No. 25 of the 6th February I had the honour to report to you that the Chinese Government had suggested the 14th March as the date for the opening of the Customs establishment at Dalny and that Sir Robert Hart hoped to have the arrangements completed by that time.
Sir Robert Hart I regret to state that this forecast has not been realized. suggested to the Japanese Minister the adoption for Dalny mutatis mutandis of the terms of the Tsingtau Amendment Agreement, a copy of which was forwarded to you in Sir Ernest Satow's despatch No. 46 of the 6th February of last year. This proposal was submitted by Mr. Hayashi to the Japanese Government, who replied some days ago that they would prefer to have the original Tsingtau Customs Agreement of the 17th April, 1899, made applicable to the case of Dalny. This alternative does not find favour with the Chinese Government, and yesterday at the Wai-wu Pu his Excellency Tong Shoa-yi spoke of it as likely to cause further delay.
The principal difference between the two Agreements is that the latter one simplified the Customs procedure by establishing a free area. The Customs levy duty on all goods passing outside of this area and hand over to the German authorities 20 per cent. of the net import duties so collected.
By the original arrangement which the Japanese now wish to extend to Dalny import duties were levied on goods passing the German frontier of Kiaochau into the interior of China, and no portion of the duties was of course returned to the Germans.
The application of this principle to Dalny would mean that the leased territory would be exempt from customs duties and would probably involve the establishment of a preventive service along the frontier, but the Japanese views are not yet sufficiently known to warrant the expression of a decided opinion on their merits.
From our point of view the chief objection to the Japanese proposal is the delay which its consideration entails, and the continuance of the unfair discrimination from which the port of Newchwang has suffered so long.
As previously reported, à Commission has been sitting at Harbin for some weeks past engaged in determining the details connected with the establishment of custom-houses at Pogranitznaia and Mandchourie, and M. Pokotilow, the Russian Minister, recently went to Harbin in connection with this question. It is reported that there is a difference of opinion in regard to the frontier duties leviable, the Russians claiming the usual reduction of one-third and the Chinese insisting upon full Maritime Customs Taxiff.
It is evident that neither the Russians nor the Japanese wish to make the first move and that each is waiting for the other. In the meantime, Mr. Kurosawa, the Japanese recently appointed to the Customs at Dalny, has been at Tsingtau studying the system in force there.
I have, &c. (Signed)
J. N. JORDAN,
[2494 d-5]
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