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manufactured product, besides that which it has already derived from the leaf tobacco.
6. In due course a valuable export trade in leaf tobacco would be built up,
for our experienced handling and packing would give the tobacco keeping qualities, and we should try to teach the farmer better methods of cultivation and curing. Such an export trade would bring money to Manchuria, and would, again, provide the Govern- ment with a new source of revenue.
Now, to enable all these benefits to accrue, it is above all things necessary that a wide and free market for cigarettes should be created, and that facilities should be granted which would enable the Chinese merchant to sell the cigarettes at reasonable prices, not only in Treaty ports, but in non-Treaty ports and in the interior of Manchuria,
Such a trade is impossible under present conditions of varying li-kin charges. A uniform price is impossible, and in many places the li-kin charges are so high that they put the goods beyond the reach of the consumer, and thus put a stop to the trade.
The duty established on tobacco and cigarettes manufactured in China is 4 m. 5 c. per picul, which duty is payable on exportation at the point of manufacture, and a further charge of half this amount is made when the goods are imported into another Treaty port. This duty is uniform and reasonable, and enables us to build up business in Treaty ports.
When, however, the goods are not sent to Treaty ports, but to non-Treaty ports or to the interior, they are subject to li-kin charges which are not uniform, and which, as already stated, are often so heavy as to place the goods beyond the reach of the bulk of the consumers.
These grave difficulties would be overcome if the Government would make an arrangement with us by which, when the goods are to be sent to non-Treaty ports in or to the interior of Manchuria, one duty only should be paid by us in Mukden, and a pass granted which would free those goods from all further taxation or li-kin in any part of Manchuria.
Such an arrangement would enable us to largely develop the industry, and the Government would, as already stated, benefit and enrich the country besides obtaining a very considerable new revenue.
We venture to suggest that this duty should be one and a-half times the present export duty, which would mean a total of 6 m. 7 c. per picul. This is the total duty payable on goods sold in a Treaty port other than the point of manufacture, and such a duty would be reasonable and satisfactory.
His Excellency M. T. Liang graciously granted us an interview recently, when the writer had the pleasure of fully placing these facts before him.
His Excellency very kindly assured us that, personally, he was in agreement in principle with our ideas, and promised us bis support and assistance as regards the Province of Manchuria.
At that interview, however, no precise amount was suggested for the duty. The object of this letter is not only to put all these facts hefore you, but to ask you kindly to use your good offices with his Excellency and also with the Viceroy to bring our proposals to a satisfactory conclusion.
Heartily thanking you for the great assistance which you have already rendered us, we are, &c.
British-American Tobacco Company (Limited),
(Signed)
5
Vice-Chairman.
[This Document is the Froperty of His Britannic Majesty's Government. C. O.
CHINA TRADE.
CONFIDENTIAL.
[218]
No. 1.
Foreign Office to China Association.
4135
RECR [January 4 FEC 09:
SECTION 2.
Sir,
Foreign Office, January 9, 1909. I AM directed by Secretary Sir Edward Grey to acknowledge the receipt of letter of the 31st ultimo on the subject of currency in China.
your
I am to state that His Majesty's Minister in Peking is fully alive to the importance of the question, and has repeatedly made representations to the Chinese Government regarding it. Sir J. Jordan will no doubt be glad to receive any information which the delegate from Shanghae may be able to communicate to him.
A copy
of your letter is being sent to him for his information. am, &c. (Signed) F. A. CAMPBELL.
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