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private management, on which depends the premier industry of Tsingtau, its shipping, has evoked the most determined resistance from all sections of the community. Chinese, German and other foreign merchants unite in condemning the scheme, the only dissentients being the few whose interests are not affected, or are even prompted by the Ordinance the shipping Companies, for instance, who under the provisions of the Ordinance are in a large measure freed from responsibility for claims. Indignation meetings have been held by the Foreign and Chinese Chambers of Commerce; but protests, suggestions, and proposed modifications have been entirely ignored by the Government, who bave persisted in forcing through this scheme in the teeth of all opposition.
It is true that the draft Regulations appear to have been submitted to the Foreign and Chinese Chambers of Commerce, for an expression of their opinion, and the matter was also discussed at several interviews between various Chinese and foreign residents and Dr. Schrameier, the Commissioner for Chinese Affairs who, if report may be trusted, is principally responsible for the scheme. But, for all the consideration they received, these opinions might just as well never have been expressed.
The best organized and most strenuous opposition came, as might be anticipated, from the Chinese, A Chinese newspaper, the "Tsingtau News," published on the 4th September the draft of the petition of the Chinese Chamber of Commerce to the Governor on the subject of the Ordinance. In this petition, copy and translation of which I inclose, the Chinese point out, not without some show of reason, that they will be placed at a considerable disadvantage in dealing with an Administration wielding practically unlimited power; that they have no redress against any arbitrary action of the Administration; that the latter, feeling that it controls the situation, is not likely to evince much consideration for the interests intrusted to its care; and that it will be impossible for merchants to obtain any compensation for loss of or damage to goods resulting from the negligence of the Administration. Finally, realizing that the financial portion of the scheme is the crux of the matter, the Chinese offer to pay an impost of 50 cents per ton on all goods imported or exported that being the average at which the fees charged under the new tariff work out--provided the shipping firms are held responsible for the payment thereof, and are also allowed to control the loading and discharging of goods as heretofore. In other words, the merchants are willing to meet the Authorities on the money question, provided they are allowed to manage their own affairs, free from Government interference.
The "Tsingtau News" of the 11th September, contained a copy of Dr. Schrameier's reply to the Chinese Chamber of Commerce, copy and translation of which I inclose. His letter held out no hope of any compromise on the one important point raised, the Government control of the wharves and godowns. The Chinese consequently turned their attention in another direction.
On the 10th September they approached the local agent of the Hamburg-Amerika Steamship Company, and endeavoured to come to some mutual Agreement outside the terms of the Ordinance. Their suggestions were that the Company should undertake on behalf of its customers all liability for the charges due under the new tariff, and should also admit liability for goods lost or damaged, without reference to the position taken up by the Administration. The Chinese would thus have been freed from the necessity of entering into any relations with the Administration. The agent, however, refused to come to terms, stating that he fully approved of the scheme. This was only natural, as the Hamburg-Amerika Company are solely steamship agents; and, as stated above, are in a large measure freed from responsibility for claims under the provisions of the Ordinance. Thereupon the Chinese decided to boycott the line, and they at once took steps to carry their decision into effect. They were afraid, however, lest they should be amenable to the law for establishing a boycott in German territory-indeed, when the boycott was first foreshadowed, it had been pointed out that it was punishable under German law with fine and imprisonment. The Chinese, however, managed to circumvent the law by making all the preliminary arrangements in Shanghac, where the boycott Agreement was eventually signed by the representatives of all the Chinese firms in Tsingtau. Under the Agreement a fine of 1,000 taels was to be imposed on any of the signatory firms shipping by the Hamburg-Amerika Line; and if they shipped through a foreign firm, the fine was to be raised to 2,000 taels,
The boycott was completely successful; from the 10th to the 24th September the steamers of the Hamburg-Amerika Line did not receive a single package either in Tsingtau or in Shanghae. Finally, realizing that the Chinese were in earnest, and driven to desperation by the prolonged boycott, the firm on the 24th September sent a letter to the Chinese Chamber of Commerce, in which they unreservedly withdrew from
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their previous position, promised to pay all wharfage dues on behalf of their customers, and acknowledged liability for any damage to or loss of goods discharged from or shipped by their steamers. I inclose copy and translation of this letter. The Chinese having carried their point, the boycott was immediately raised.
There the matter stands for the present. Whether any further difficulties will arise when the Ordinance comes into force on the 1st November it is difficult to say. The Chinese may possibly rest content with the Concessions they have wrung from the shipping Companies, although it would be too much to assume that they are reconciled to the Ordinance, while the foreign merchants are as averse to it as ever.
Turning now to the Ordinance itself, the claim by the Government of the right to assume control of all the wharf and godown accommodation at Tsingtau is certainly a new, almost a revolutionary, departure; and the principle, once established, would seem to be susceptible of extended application. Apart from this consideration, the monopolistic control by a Government Department of such important branches of industry is hardly likely to prove as satisfactory to the public at large as a competitive system of private enterprise, under which successful results are attained only in proportion as the interests of the merchants are considered.
As to the Regulations themselves there is little to say, except that the Government appears to have covered itself very fully against any liability for loss or damage, and this it is which constitutes one of the chief grievances of the Chinese merchants. Even in cases where liability is theoretically admitted, the aggrieved party has got to prove explicitly that the damage or loss originated on the premises of the Wharf Administration and was due to the act of its employés, a task which would usually prove to be a difficulty, and would always be a troublesome one. Hitherto, of course, the shipping Companies were liable as long as the goods were actually in their care, and, for the sake of their business, would always be prepared to consider and to pay any reasonable claim, whereas no such consideration need weigh with the Administration, secure in the enjoyment of its monopoly and of its official status.
Finally, it will be noted that the Administration acknowledges no liability for damages by fire, even when brought about by the act of its own employees (paragraph 6). Whether such a provision would hold good at law, I am unable to say, but it certainly seems to bear hardly on the owners of the goods.
I may mention here that the schemes for raising money are by no means confined to the present Ordinance. I am told that a tax on water is contemplated among others. The sum of 10 cash is to be levied on each load of water carried, roughly equivalent to two bucketfuls. A building tax on Chinese huts has also been introduced, and is levied everywhere in the Colony with the exception of Tsingtau itself. The tax on first-class huts is 6 dollars; second and third-class huts pay 4 dollars and 2 dollars respectively. The latest proposal is to abolish the use of Chinese weights and measures in the Colony and to introduce the metric system. All Chinese, so I understand, are to be compelled to buy metric scales, and a fine will be inflicted on any merchant or shopkeeper found to be without such scales.
The mere recital of such schemes sounds sufficiently amazing, but I am assured that all of them either have been introduced or else are seriously in contemplation. What the attitude of the Chinese will be and whether they will patiently submit is another question. Such methods of taxation are likely to recoil on the prosperity of Tsingtau; for, apart from bearing very heavily on the Chinese community, and causing much irritation and discontent, they may not impossibly result in driving many of them away from the Colony altogether.
I am indebted to Mr. Eckford, the Consular Agent at Tsingtau, for the material on which this Report is based.
I have, &c.
(Signed)
BERTRAM GILES,
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