price. Granted, however, that in this direction Dairen merchants are suffering loss, it has to be remembered, though this would naturally not appeal to them, that the purchaser in Japan enjoys a corresponding gain. As to other merchandise, it is, at least, doubtful if any great harm has been, or could be for some time, done, though I believe a small quantity of Russian "prints" do find their way across the frontier.
There remains the second cause for complaint, defects in the administration of the Dairen Customs office itself. Of these, one of the chief, it is alleged, is the rigorous examination to which all goods, irrespective of their place of origin or destination, are subjected. The defect is a real one. It is to collect duty on rail-borne produce, not on sea-borne, that the Dairen customs were established, and, as in the case of goods coming from or going oversea, examination is, or should be, mainly for statistical purposes, it is to be regretted that some system less inconvenient to the public than that at present in force cannot be evolved. This point, together with that of the time consumed in complying with formalities, has already been alluded to in the inclosure to my despatch aforementioned. There are other reasons for dissatisfaction; but they do not appear to be of vital importance. The "Manshu Nichi Nichi," for instance, adduces the case of "dangerous articles" which, it asserts, cannot now be imported without the special permission of the Chinese Government, to obtain which involves formalities both lengthy and onerous; but, as similar Regulations are in force in other ports, it is difficult to see how people here can hope to be exempted from a rule which is of universal application.
The "Ryoto Shimpo" draws attention (as another shortcoming) to the customs system of levying duty on articles sent by parcels post. A translation of its remarks on the subject, I have the honour to append. There is admittedly justice in them, the customs procedure in this respect having given dissatisfaction in other ports besides Dairen; but the question is, I believe, not by any means an important one.
Careful examination of the papers has not brought to light any other tangible grounds for dissatisfaction, so that the two cardinal points would seem to be—
1. The non-establishment of the customs on the Russian frontier, and
2. The vexatious delays and formalities inflicted on merchants at Dairen.
The steps taken by the agitators to bring their views to the notice of the authorities are briefly as follows:—
At the end of January, a meeting took place of the sympathizers with the present movement, when, in addition to members of the Dairen merchant community, there were present representatives from Tiehling and Port Arthur, Mukden having decided to take independent action. The resolution, of which a translation is inclosed, was put before the meeting, and, a rider to the effect that "all duties already paid should be refunded" having been added, the two were carried unanimously. Committees for ordinary purposes and for the investigation of the present customs system and its defects were nominated, and two representatives were chosen to proceed to Tôkiô and lay the merchants' case before the Cabinet and the two Houses of the Diet. Petitions were also subsequently sent to the Governor-General of the leased territory, while Mr. Nakamura, the Chief Civil Administrator, who is now in Japan, is reported to have promised before his departure to bring the matter to the notice of the Minister for Foreign Affairs.
It will be noticed that there is no mention anywhere of Newchwang, though it presumably has suffered too by the failure of the Chinese Government to establish customs stations in North Manchuria.
What or who is at the bottom of this agitation it is at present impossible to ascertain with certainty. Judging from the case as presented by the journals in sympathy with the agitators, one is forced to the conclusion that the agitation itself is to a certain extent fictitious; but that, as the Commissioner of Customs seems to believe, it is fomented by one person, a former employé of the Japanese Tobacco Monopoly Bureau, with the sole object of bringing his name before the public, appears somewhat doubtful. I am rather of opinion, though I offer this explanation with diffidence, that resentment at the presence in Dairen of Chinese officials in any shape is the first cause of the present movement. Realizing, however, in their own minds the hopelessness of obtaining the permanent abolition of the customs, the promoters aim actually, and quite apart from the redress of real grievances, at a large curtailment of Mr. Kurosawa's powers and a drastic modification of the Customs Regulations when the latter, which, as your Excellency is aware, are only provisional, are submitted to revision.
In choosing for the initiation of their agitation the moment when the Diet is in session, they probably assume that no time could be more favourable for the successful stirring up of public opinion and the consequent furthering of their designs.
As an example of the tone in which the majority of the newspaper comments on this subject have been couched, I have the honour to inclose a translation of a paragraph from the "Manshu Nichi Nichi" on the establishment of a Customs Inspection Station at Port Arthur.
The statements made in the Japan papers during the last few days that the Chinese customs are now actually working in the north are received here with incredulity.
I have, &c. (Signed) HAROLD E. PARLETT.
Inclosure 2 in No. 1.
Extract from the "Manshu Nichi Nichi Shimbun.”
THE INEQUALITY OF OPPORTUNITY IN THE DAIREN CUSTOMS.
(Translation.)
IT is only since it has come to the knowledge of the general public that the Chinese customs in North Manchuria are not yet organized that the voice of dissatisfaction has become loud. In consenting to the establishment within the leased territory of Chinese custom-houses, our Government was influenced by a friendly spirit of concession to China; but it goes without saying that a condition of this concession was the simultaneous establishment in North Manchuria of similar establishments, equality of treatment being thus assured. In other words, on the principle of equal opportunity, it was guaranteed that there should be not the slightest difference in the treatment commercially of subjects of Japan or of Russia. Half-a-year has passed since the Dairen customs were established, and the levying of duties is in full swing here; but at Manchuria and Sungari so miserable is the organization of the Chinese customs that Hence it is the merchandise coming in through that district does so still duty-free. that both merchants and merchandise in South Manchuria are subjected to a very grievous disadvantage, certain of the goods in which traders in this part are being quite unable to compete with the Russian article.
Consider, for instance, tobacco; only when it has paid the required duty to the Russian Chinese customs can Japanese tobacco destined for Manchuria be sent on. Russian tobacco, on the other hand, pays not a penny of duty, comes south over the border, competes along the railway line with our goods, and finally reaches Dairen to endeavour to overthrow us at our very base. Is not this so?
Or consider again beans and bean-cake: Is it not a fact that the articles of this kind which pass through Vladivostock are, notwithstanding the extra freight, sold in Japan at so low a rate that they are in process of completely overthrowing similar articles exported from Dairen?
It is a fact, in the first place, that the result of the non-establishment of a custom-house at Manchuria is that Japanese imports into Manchuria are thrown into an exceedingly disadvantageous position; and, in the second, though the reasons for this are somewhat complicated, that exports to Japan via Dairen must, because there is no custom-house at Sungari, in Japan itself wage a bitter fight for themselves. If this goes on, it will be difficult to prevent other articles of import or export following the example of tobacco, beans, and bean-cake. For ourselves, we entertain the gloomiest forebodings for the future of Japanese trade with Manchuria. In the north, there is laxity only; in the south, a rigid strictness. By no manner of means can the attitude of the Chinese position be considered an equitable one. To solve the difficulty in accordance, on the one hand, with the friendly action of Japan, which, fully respecting the great principle of promoting friendliness between the two nations, consented to the establishment of a custom-house at Dairen; on the other, in accordance with the principles of equal opportunity between north and south, which principles China proclaims as her own, we would suggest that the least China can do to fulfil her obligations is as follows:—
1. To postpone the levying of duty on goods in South Manchuria until such time as the custom-houses in North Manchuria are organized.
2. To refund all duties which have so far been paid.
(2889 q-2)
B 2
316
2
price. Granted, however, that in this direction Dairen merchants are suffering loss, it has to be remembered, though this would naturally not appeal to them, that the purchaser in Japan enjoys a corresponding gain. As to other merchandize it is, at least, doubtful if any great harm has been, or could be for some time, done, though I believe a small quantity of Russian "prints" do find their way across the frontier.
There remains the second cause for complaint, defects in the administration of the Dairen Customs office itself. Of these one of the chief, it is alleged, is the rigorous examination to which all goods, irrespective of their place of origin or destination, are subjected. The defect is a real one. It is to collect duty on rail-borne produce not on sea-borne that the Dairen customs were established, and, as in the case of goods coming from or going oversea, examination is, or should be, mainly for statistical purposes, it is to be regretted that some system less inconvenient to the public than that at present in force cannot be evolved. This point, together with that of the time consumed in complying with formalities, has already been alluded to in the inclosure to my despatch aforementioned. There are other reasons for dissatisfaction; but they do not appear to be of vital importance. The "Manshu Nichi Nichi," for instance, adduces the case of "dangerous articles" which, it asserts, cannot now be imported without the special permission of the Chinese Government, to obtain which involves formalities both lengthy and onerous; but, as similar Regulations are in force in other ports, it is difficult to see how people here can hope to be exempted from a rule which is of universal application.
TheRyoto Shimpo" draws attention (as another shortcoming) to the customs system of levying duty on articles sent by parcels post. A translation of its remarks on the subject. I have the honour to append. There is admittedly justice in them, the customs procedure in this respect having given dissatisfaction in other ports besides Dairen; but the question is, I believe, not by any means an important one.
Careful examination of the papers has not brought to light any other tangible grounds for dissatisfaction, so that the two cardinal points would seem to be--
1. The non-establishment of the customs on the Russian frontier, and
2. The vexatious delays and formalities inflicted on merchants at Dairen.
The steps taken by the agitators to bring their views to the notice of the authorities are briefly as follows :--
At the end of January a meeting took place of the sympathizers with the present movement, when, in addition to members of the Dairen merchant community, there were present representatives from Tiehling and Port Arthur, Mukden having decided to take independent action. The resolution, of which a translation is inclosed, was put before the meeting, and, a rider to the effect that "all duties already paid should be refunded" having been added, the two were carried unanimously. Committees for ordinary purposes and for the investigation of the present customs system and its defects were nominated, and two representatives were chosen to proceed to Tôkiô and lay the merchants' case before the Cabinet and the two Houses of the Diet. Petitions were also subsequently sent to the Governor-General of the leased territory, while Mr. Nakamura, the Chief Civil Administrator, who is now in Japan, is reported to have promised before his departure to bring the matter to the notice of the Minister for Foreign Affairs.
It will be noticed that there is no mention anywhere of Newchwang, though it presumably has suffered too by the failure of the Chinese Government to establish customs stations in North Manchuria.
What or who is at the bottom of this agitation it is at present impossible to ascertain with certainty. Judging from the case as presented by the journals in sympathy with the agitators, one is forced to the conclusion that the agitation itself is to a certain extent fictitions; but that, as the Commissioner of Customs seems to believe, it is fomented by one person, a former employé of the Japanese Tobaceo Monopoly Bureau, with the sole object of bringing his name before the public, appears somewhat doubtful. I am rather of opinion, though I offer this explanation with diffidence, that resentment at the presence in Dairen of Chinese officials in any shape is the first cause of the present movement. Realizing, however, in their own minds the hopelessness of obtaining the permanent abolition of the customs, the promoters aim actually, and quite apart from the redress of real grievances, at a large curtailment of Mr. Kurosawa's powers and a drastic modification of the Customs Regulations when the latter, which, as your Excellency is aware, are only provisional, are submitted to revision.
3
In choosing for the initiation of their agitation the moment when the Dict is in session, they probably assume that no time could be more favourable for the successful stirring up of public opinion and the consequent furthering of their designs.
As an example of the tone in which the majority of the newspaper comments on this subject have been couched, I have the honour to inclose a translation of a paragraph from the "Manshu Nichi Nichi" on the establishment of a Customs Inspection Station at Port Arthur,
The statements made in the Japan papers during the last few days that the Chinese customs are now actually working in the north are received here with incredulity,
I have, &c. (Signed) HAROLD E. PARLETT.
Inclosure 2 in No. 1.
Extract from the "Manshu Nichi Nichi Shimbun.”
THE INEQUALITY OF OPPORTUNITY IN THE DAIREN CUSTOMS.
(Translation.)
IT is only since it has come to the knowledge of the general public that the Chinese customs in North Manchuria are not yet organized that the voice of dissatis- faction has become loud, In consenting to the establishment within the leased territory of Chinese custom-houses, our Government was influenced by a friendly spirit of concession to China; but it goes without saying that a condition of this concession was the simultaneous establishment in North Manchuria of similar establishments, equality of treatment being thus assured. In other words, on the principle of equal opportunity, it was guaranteed that there should be not the slightest difference in the treatment commercially of subjects of Japan or of Russia. Half-a-year has passed since the Dairen customs were established, and the levying of duties is in full swing here; but at Manchuria and Sungari so miserable is the organization of the Chinese customs that Hence it is the merchandize coming in through that district does so still duty free. that both merchants and merchandize in South Manchuria are subjected to a very interested grievous disadvantage, certain of the goods in which traders in this part are being quite unable to compete with the Russian article.
Consider, for instance, tobacco; only when it has paid the required duty to the Russian Chinese customs can Japanese tobacco destined for Manchuria be sent on. tobacco, on the other hand, pays not a penny of duty, comes south over the border, competes along the railway line with our goods, and finally reaches Dairen to endeavour to overthow us at our very base. Is not this so?
Or consider again beans and bean-cake: Is it not a fact that the articles of this kind which pass through Vladivostock are, notwithstanding the extra freight, sold in Japan at so low a rate that they are in process of completely overthrowing similar articles exported from Dairen?
It is a fact, in the first place, that the result of the nou-establishment of a custom- house at Manchuria is that Japanese imports into Manchuria are thrown into an exceed- ingly disadvantageous position; and, in the second, though the reasons for this are somewhat complicated, that exports to Japan via Dairen must, because there is no If this goes custom-house at Sungari, in Japan itself wage bitter fight for themselves.
on it will be difficult to prevent other articles of import or export following the example of tobacco, beans, and bean-cake. For ourselves, we entertain the gloomiest forebodings for the future of Japanese trade with Manchuria. In the north there is laxity only, in the south a rigid strictness. By no mauner of means can the attitude of the Chinese position be considered an equitable one. To solve the difficulty in accordance, on the one hand, with the friendly action of Japan, which, fully respecting the great principle of promoting friendliness between the two nations, consented to the establishment of a custom-house at Dairen; on the other, in accordance with the principles of equal opportunity between north and south, which principles China proclaims as her own, we would suggest that the least China can do to fulfil her obligations is as follows :--
1. To postpone the levying of duty on goods in South Manchuria until such time as the custom-houses in North Manchuria are organized.
2. To refund all duties which have so far been paid.
(2889 q-2]
B 2
316
T
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