CO129-351 - Public Offices - 1908 — Page 261

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postponed, and, failing the same, to request His Majesty's Minister to bring the matter to the notice of the Imperial Chinese Government.

(Translation.) Sir,

I have, &c. (Signed) J. O. P. BLAND.

Inclosure 2 in No. 1.

Liang Shih-yi to Mr. Bland.

February 10, 1908. I BEG to acknowledge the receipt of your letter of yesterday's date, in which you state that the collection of li-kin on the Shanghae-Nanking Railway is not carried out in an impartial manner, and you express the hope that the system may be changed for the better without delay.

As no com-

It has already been my duty to give my earnest consideration to this matter, and last year I repeatedly directed the head office to co-operate with the local officials of Kiangsu in devising a scheme applicable alike to land and river traffic. pletely satisfactory scheme has yet been elaborated, certain further amendments are now under consideration, and as my main object is the gradual development of traffic on the railway, you may feel assured that there is no ground for anxiety with regard to the matter.

I remain, &c. (Signed)

Sir,

Inclosure 3 in No. 1.

Mr. Bland to Liang Shih-yi,

LIANG SHIH-YI.

British and Chinese Corporation, Peking, February 18, 1908.

I HAVE the honour to inclose copy of a further communication addressed to me by the Corporation's Joint Agents at Shanghae in reference to the question of irregular li-kin taxation on the Shangliae-Nanking Railway. I understood your Excellency to state at our interview yesterday that measures are now being considered, and will shortly be introduced, to settle this important question in accordance with Treaty stipulations and the terms of the Loan Agreement, but in the meanwhile I have the honour to request that pending the introduction of these measures the head Li-kin Office at Soochow be instructed that no li-kin is leviable on foreign goods covered by exemption certificates.

In Mr. Pope's letter of the 31st ultimo, he quotes the following specific case:-— "To-day the American Tobacco Company wanted to ship some cigarettes to Soochow from Shanghae, both Treaty ports. Half of it was foreign tobacco which had paid import duties, and for this they produced an exemption certificate from the Customs which freed them of all payments whatsoever, from Treaty port to Treaty port. These exemption certificates have all along and always been accepted on the canals on steam launches by the li-kin people. When they bring them to the railway to-day the li-kin man demands 98 taels, discriminating between railway and canal, and refuses to honour the exemption certificate.

"On the other half, the consignment of native manufacture pin-head cigarettes, which the American Tobacco Company say the Wai-wu Pu have accepted as native manufacture, and on which on the canals they have paid for years upon years the laodal 26 cents a box for freight and li-kin, making on the consignment about 9 dollars; when they offer it on the railway to-day they are asked to pay 113 dollars. This is too glaring a discrimination between the railway and canal, and should help Mr. Bland to put the matter very clearly."

The conditions under which, by Treaty, li-kin is leviable are as follows:-

1. Foreign goods which have paid import duty at Shanghae or elsewhere in China may be carried by rail to Soochow, Chinkiang, or Nanking, without payment of any other duty or li-kin whatsoever.

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2. Foreign goods which have paid import duty at Shanghae or elsewhere in China, if destined for places between ports open to foreign trade, may be carried by rail to such destination under transit or pay such li-kin as is leviable en route. Foreign goods, for example, bound for Wusich, could be carried to Soochow free of duty and li-kin, and thereafter be liable to lik-in between Soochow and Wusieh only.

3. Native goods whose place of origin is Shanghae, if sent by rail to Soochow, Chinkiang, or Nanking are liable to full export duty at Shanghae and to coast trade duty, i.e., half import duty, at Soochow, Chinkiang, or Nanking as the case may be. No li-kin is leviable en route.

4. Native goods which have been imported into Shanghae and have paid export duty at some other port in China and coast trade duty at Shanghae, may be carried by rail to Soochow, Chinkiang, or Nanking without payment of any duty or l-kin

whatsoever.

5. Native goods, whether of Shanghae origin or imported, sent by rail to Shanghae or places between Treaty ports, are liable to the same taxation as similar goods not carried by rail between the ports and destination.

6. Native goods which have not paid export duty and coast trade duty elsewhere, may be carried by rail from Nanking, Chinkiang, or Soochow to Shanghae on paying export duty at the port of departure and coast trade duty at Shanghae. If the goods are intended for Chinese consumption they may be carried from Shanghae to any other port in China without becoraing liable to further duty. If they are exported abroad, the coast trade duty is refunded. Such goods are not liable to li-kin" when carried by rail.

7. Native goods not covered by transit pass if brought to the railway at stations between posts open to foreign trade, are liable to payment of li-kin between such station and port. If accompanied by a transit pass, only one export duty is payable, whether at Nanking, Chinkiang, Soochow, or Shanghae. In the case of cocoons brought to Shanghae under transit pass to be reeled here, the transit dues are refunded when the silk is exported abroad and has paid export duty.

I have the honour to request that the head Li-kin Office at Soochow be directed to act in accordance with these conditions, and furthermore to conform to the terms of the Loan Agreement (Article 14), which guarantees to the Shanghae-Nanking Railway li-kin treatment not less favourable than that enforced on other railways, and protection from illegal impositions.

I have, &c.

(Signed)

J. O. P. BLAND.

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