This Document is the Property of His Britannic Majesty's Government.
93
2
country, than in the case of any other railway now in hand in the eighteen provinces. The construction of the first three sections presents no considerable difficulties.
The railway has been opened much earlier than is usually the case, very few of the bridges having been built. But little ballast has been laid down, principally because the line has not hitherto been laid through stony country. Good ballast is now being laid, and solid concrete bridges are being put up throughout the 1st and 2nd sections. The line is well built, and a large sum of money has been spent in lowering the grades. I am informed that it is being much more carefully built than are most American railways. The engineers working under Kwang all seem to consider him a thoroughly good man. They recognize, however, that he has enormous difficulties to contend with through having a Board of Directors over him utterly ignorant of railway construction, but all wanting to interfere with him and all suspecting him of making money over contracts, &c.
A rough map of the first 80 miles of line is inclosed herewith.*
The Canton-Kowloon Railway.
The survey of this line is nearly completed, and tenders for the earthwork were invited towards the end of March.
The Sunning Railway.
The 17 miles of this line from Kung Yik to Sunning were opened to traffic in January. Of the remaining 26 miles from Sunning to Sam Kap, rails have been laid for 9 miles and earthwork completed for the whole distance. (See Mr. Mansfield's despatch No. 15 of the 22nd April.)
CHINA RAILWAYS.
CONFIDENTIAL.
[22274]
(No. 205.) Sir,
No. 1.
[June 29.]
SECTION 4.
Sir J. Jordan to Sir Edward Grey.-(Received June 29.)
Peking, May 11, 1908. IN continuation of my despatch No. 123 of the 16th March last, I have the honour to inclose copies of further correspondence with the Wai-wu Pu on the subject of the levy of li-kin on the Shanghae-Nanking Railway.
In their note of the 6th instant the Board recognize that duty-paid foreign imports are entitled to an exemption certificate when carried by rail from one Treaty port to another, and instructions for the issue of these certificates have been issued to the Acting Inspector-General of Customs. In my conversations with the Ministers on the question I had insisted that this step should be taken at once in order to avoid claims for the refund of li-kin paid on such goods in contravention of the spirit of the Treaties.
The Board's note is less satisfactory in its proposed treatment of native produce, and here there will be considerable difficulty in arriving at an arrangement.
During my recent visit to Shanghae I had an interview with Mr. G. Acheson, the Imperial Maritime Customs Li-kin Commissioner at Soochow, who explained to me at great length the working of the li-kin system in Kiangsu, and endeavoured to prove that the enforcement of the Regulations recently applied to Manchuria was an impossibility in that province. Kiangsu has to furnish a yearly contribution of 2,000,000 taels (£300,000) towards the payment of the Anglo-German Loan of 1898, and Mr. Acheson, whose experience of the province and knowledge of the question give weight to his opinion, considers that the discharge of this obligation is incompatible with the immunity from taxation of native produce which has paid coast-trade duty.
Mr. Acheson, at my request, put his views in writing, and the inclosed copy of them will serve to show what a complicated question li-kin in this country is, even when reduced to its simplest terms by a foreign expert.
Although the foreign merchant is not directly interested in the taxation of native produce, I have considered it wise to adhere to the precedent furnished by the Provisional Regulations applicable to the marts in Manchuria, translation of which was forwarded in my despatch No. 560 of the 28th November last, and in the note to the Wai-wu Pu copy of which forms Inclosure 3 in this despatch I have urged the extension of this arrangement to native goods carried by the Shanghae-Nanking Railway. This would insure uniformity of procedure, and would add to the earning powers of the railway, but the answer will probably be that there is no analogy between the two cases, the li-kin charges in Manchuria being the lightest, and those in Kiangsu probably the heaviest, in the Empire.
The extension of railways must in time bring its own solution of the question, and force the Chinese Government to reform its system of taxation, and therein lies, perhaps, the chief utility of the present discussion.
I have, &c.
(Signed) J. N. JORDAN.
* Not printed.
(Translation.) Sir,
Inclosure 1 in No. 1.
Prince Ching to Sir J. Jordan.
Peking, May 6, 1908. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 12th March respecting the li-kin charges on goods carried by the Shanghae-Nanking Railway (note of the 12th March quoted), and to state, in reference to this communication and to your Excellency's verbal representations on the subject, that this Board at once addressed despatches to the Revenue Council and to the Board of Communications explaining that foreign goods which have paid import duty, and which are covered...
This Document is the Property of His Britannic Majesty's Government.Į
93
ţ
!
!
2
country, than in the case of any other railway now in hand in the eighteen provinces. The construction of the first three sections presents no considerable difficulties.
The railway has been opened much earlier than is usually the case, very few of the bridges having been built. But little ballast has been laid down, principally because the line has not hitherto been laid through stony country. Good ballast is now being laid, and solid concrete bridges are being put up throughout the 1st and 2nd sections. The live is well built, and a large sum of money has been spent in lowering the grades. I am informed that it is being much more carefully built than are most American railways. The engineers working under Kwang all seem to consider him a thoroughly good man. They recognize, however, that he has enormous difficulties to contend with through having a Board of Directors over him utterly iguorant of railway construction, but all wanting to interfere with him and all suspecting him of making money over contracts, &c.
A rough map of the first 80 miles of line is inclosed herewith.*
The Canton-Kowloon Railway.
The survey of this line is nearly completed, and tenders for the earthwork were invited towards the end of March.
The Sunning Railway.
The 17 miles of this line from Kung Yik to Sunning were opened to traffic in January. Of the remaining 26 miles from Sunning to Sam Kap, rails have been laid for 9 miles and earthwork completed for the whole distance. (See Mr. Mansfield's despatch No. 15 of the 22nd April.)
CHINA RAILWAYS.
CONFIDENTIAL.
[22274]
(No. 205.) Sir,
No. 1.
[June 29.]
SECTION 4.
Sir J. Jordan to Sir Edward Grey.-(Received June 29.)
Peking, May 11, 1908. IN continuation of my despatch No. 123 of the 16th March last, I have the honour to inclose copies of further correspondence with the Wai-wu Pu on the subject of the levy of h-kin on the Shanghae-Nanking Railway.
In their note of the 6th instant the Board recognize that duty-paid foreign imports are entitled to an exemption certificate when carried by rail from one Treaty port to another, and instructions for the issue of these certificates have been issued to the Acting Inspector-General of Customs. In my conversations with the Ministers on the question I had insisted that this step should be taken at once in order to avoid claims for the refund of li-kin paid on such goods in contravention of the spirit of the Treaties.
The Board's note is less satisfactory in its proposed treatment of native produce, and here there will be considerable difficulty in arriving at an arrangement.
During my recent visit to Shanghae I had an interview with Mr. G. Acheson, the Imperial Maritime Customs Li-kin Commissioner at Soochow, who explained to me at great length the working of the li-kin system in Kiangsu, and endeavoured to prove that the enforcement of the Regulations recently applied to Manchuria was an impossibility in that province. Kiangsu has to furnish a yearly contribution of 2,000,000 taels (300,0001) towards the payment of the Anglo-Ger nan Loan of 1898, and Mr. Acheson, whose experience of the province and knowledge of the question give weight to bis opinion, considers that the discharge of this obligation is incompatible with the immunity from taxation of native produce which has paid coast-trade duty,
Mr. Acheson, at my request, put his views in writing, and the inclosed copy of them will serve to show what a complicated question i-kin in this country is, even when reduced to its simplest terms by a foreign expert.
Although the foreign merchant is not directly interested in the taxation of native produce, I have considered it wise to adhere to the precedent furnished by the Provisional Regulations applicable to the marts in Manchuria, translation of which was forwarded in my despatch No. 560 of the 28th November last, and in the note to the Wai-wu Pu copy of which forms Inclosure 3 in this despatch I have urged the extension of this arrangement to native goods carried by the Shanghae-Nanking Railway. This would insure uniformity of procedure, and would add to the earning powers of the railway, but the answer will probably be that there is no analogy between the two cases, the li-kin charges in Manchuria being the lightest, and those in Kiangsu probably the heaviest, in the Empire.
The extension of railways must in time bring its own solution of the question, and force the Chinese Government to reform its system of taxation, and therein lies, perhaps, the chief utility of the present discussion.
I have, &c.
(Signed) J. N. JORDAN.
* Not printed.
(Translation.) Sir,
Inclosure 1 in No. 1.
Prince Ching to Sir J. Jordan.
Peking, May 6, 1908. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 12th March respecting the li-kin charges on goods carried by the Shanghae-Nanking Railway (note of the 12th March quoted), and to state, in reference to this communica- tion and to your Excellency's verbal representations on the subject, that this Board at once addressed despatches to the Revenue Council and to the Board of Communications explaining that foreign goods which have paid import duty, and which are covered
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