2
those levied on the northern railways. Not only are they heavier, but they are increased at pleasure and without notice, and the li-kin Regulations are also interpreted differently at different stations. Merchants desirous of using the railway for transport purposes say that the railway tariff is fair and satisfactory, but that the li-kin and other taxes are so much higher than similar imposts on water-borne traffic that they cannot avail themselves of the railway facilities for the carriage of goods. There is no doubt whatever that the action of the li-kin authorities, which is clearly opposed to the letter and spirit of Article 14 above quoted, has retarded the growth of the railway receipts, and has had generally a very prejudicial effect on the railway finances.
I am also informed that when foreign goods upon which the proper duties have been paid at the Imperial Maritime Customs, and which are covered by exemption certificates freeing them from all taxation whatsoever from Treaty port to Treaty port, are brought to the railway, the li-kin authorities demand li-kin, and refuse to recognize the exemption certificates. That is a serious infraction of well-known Treaty obligations, which it is the duty of the Chinese Government to put a stop to without loss of time. As your Highness is aware, arrangements are in force on the Northern and Manchurian Railways for the regulation of these matters, and foreign goods are carried from Treaty port to Treaty port by railway without interference whatsoever from the li-kin authorities.
The prosperity of the Shanghae-Nanking Railway is a matter of concern to the Chinese Government and the British bondholders alike, and it is perfectly evident that so long as the li-kin authorities of Kiangsu are permitted to make illegal and irregular levies on the traffic, merchants can have no confidence in the management, and will make no proper use of the railway. I have the honour, therefore, to request that immediate instructions may be issued to the provincial authorities to respect the exemption certificates issued by the Imperial Maritime Customs, in accordance with Treaty and precedent, and to take effective steps forthwith which will guarantee to the traffic of the Shanghae-Nanking Railway fair and equal treatment from the li-kin authorities of Kiangsu.
I avail, &c. (Signed) J. N. JORDAN.
([This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[15485]
No. 1.
663
C.0. 20024
[May 5]
SECTION 16 JUN 08
Extract from Peking letter dated April 1, 1908.-(Communicated by Mr. Addis, May 5, 1908.) (Private and Confidential.)
80.
My impression is that Japanese opposition to the Fakumen extension will yet have to yield before hard facts and the force of public opinion.
I had an interesting interview with Tang Shao-yi last week, and, from what he told me in confidence I should say the Chinese are in a strong position over the question. The Japanese, as usual, have been distorting facts, and Tang, who was a negotiator of the Treaty of 1905, is determined to publish the truth when the moment arrives for doing so. It was at the request of the Japanese, not of the Chinese, that the minutes of the negotiations of 1905 were kept secret by both parties. When the question of parallel lines came up, Tang first wanted to define the distance, and when the Japanese objected to this as giving an impression of want of confidence, Tang suggested that they should agree to be guided by the practice of other countries with regard to competing lines. To this the Japanese also objected. The introduction of such conditions would import a note of distrust into the arrangement which the world would be likely to misinterpret. Japan was China's true friend, whose one object it was to see "the commercial expansion of Manchuria;" so far from placing obstacles in the way, China might trust her, when the time came, to do everything possible to assist in the development of the country. Lulled by these fair assurances, China gave in, only to find now the disingenuousness of the Japanese intentions.
In the face of such disclosures, all recorded in the minutes, it is hardly credible that Japan will be able to make her present objections effective.
[2972]
!
2
those levied on the northern railways. Not only are they heavier, but they are increased at pleasure and without notice, and the li-kin Regulations are also inter- preted differently at different stations. Merchants desirous of using the railway for transport purposes say that the railway tariff is fair and satisfactory, but that the li-kin and other taxes are so much higher than similar imposts on water-borne traffic that they cannot avail themselves of the railway facilities for the carriage of goods. There is no doubt whatever that the action of the li-kin authorities, which is clearly opposed to the letter and spirit of Article 14 above quoted, has retarded the growth of the railway receipts, and has had generally a very prejudicial effect on the railway finances.
I am also informed that when foreign goods upon which the proper duties bave been paid at the Imperial Maritime Customs, and which are covered by exemption certificates freeing them from all taxation whatsoever from Treaty port to Treaty port, are brought to the railway, the i-kin authorities demand li-kin, and refuse to recognize the exemption certificates. That is a serious infraction of well-known Treaty obligations, which it is the duty of the Chinese Government to put a stop to without loss of time. As your Highness is aware, arrangements are in force on the Northern and Manchurian Railways for the regulation of these matters, and foreign goods are carried from Treaty port to Treaty port by railway without interference whatsoever from the li-kin authorities.
any
The prosperity of the Shanghae-Nanking Railway is a matter of concern to the Chinese Government and the British bondholders alike, and it is perfectly evident that so long as the li-kin authorities of Kiangsu are permitted to make illegal and irregular levies on the traffic, merchants can have no confidence in the management, and will make no proper use of the railway. I have the honour, therefore, to request that immediate instructions may be issued to the provincial authorities to respect the exemption certificates issued by the Imperial Maritime Customs, in accordance with Treaty and precedent, and to take effective steps forthwith which will guarantee to the traffic of the Shanghae-Nanking Railway fair and equal treatment from the li-kin authorities of Kiangsu.
I avail, &c. (Signed) J. N. JORDAN.
([This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[15485]
No. 1.
663
C.0.
20024
[May 5]
SECTION 16 JUN 08
Extract from Peking letter dated April 1, 1908.-(Communicated by Mr. Addis, May 5, 1908.) (Private and Confidential.)
80.
MY impression is that Japanese opposition to the Fakumen extension will yet have to yield before hard facts and the force of public opinion.
I had an interesting interview with Tang Shao-yi last week, and, from what he told me in confidence I should say the Chinese are in a strong position over the question. The Japanese, as usual, have been distorting facts, and Tang, who was a negotiator of the Treaty of 1905, is determined to publish the truth when the moment arrives for doing It was at the request of the Japanese, not of the Chinese, that the minutes of the negotiations of 1905 were kept secret by both parties. When the question of parallel lines came up, Tang first wanted to define the distance, and when the Japanese objected to this as giving an impression of want of confidence, Tang suggested that they should agree to be guided by the practice of other countries with regard to competing lines. To this the Japanese also objected. The introduction of such conditions would import a note of distrust into the arrangement which the world would be likely to misinterpret. Japan was China's true friend, whose one object it was to see "the commercial expansion of Manchuria; so far from placing obstacles in the way, China might trust her, when the time came, to do everything possible to assist in the development of the country. Lulled by these fair assurances, China gave in, only to find now the disingenuousness of the Japanese intentions.
In the face of such disclosures, all recorded in the minutes, it is hardly credible that Japan will be able to make her present objections effective.
[2972
}
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