CO129-371 - Public Offices - 1910 — Page 242

right direction, does not, however, redress the grievances of the merchants interested in the Chinwangtao export trade.

Enclosure 1 in No. 1.

I have, &c.

J. N. JORDAN.

Memorandum communicated to Wai-wu Pu by Sir J. Jordan.

THE British Cigarette Company (Limited) have requested Sir John Jordan to invite the attention of the Wai-wu Pu to the serious disabilities under which the export trade from Manchuria by the Chinese Northern Railways at present labours owing to the exactions of the li-kin authorities. The following instance, quoted by the company, is a striking example of the manner in which these exactions teud, not only to check the development of new industries, but also to divert traffic from the Imperial Railways of North China to the South Manchurian Railway.

In March of this year the company decided, as a new venture, to ship a large quantity of native tobacco from Mukden to Hankow, and arranged that shipment should be made through the port of Chinwangtao. On the arrival of the first consignment of five car-loads at Shanhaikuan, the heavy charge of 1,512 tacls was demanded by the li-kin authorities, and this amount was paid under protest, but when the second consignment arrived payment of li-kin was refused, and the tobacco was sent back to Mukden. The company point out that their enterprise, if not interfered with by the oppressive action of the li-kin authorities, was calculated to develop inter-provincial trade, to encourage a demand for Manchurian tobacco, and to create traffic for the Northern Railways. The imposition of the heavy charge of 1:40 taels a picul, which is about a third of the value of the tobacco at Mukden, practically prohibits the export of tobacco by the Northern Railways, and leaves merchants no option but to transfer their business to the South Manchurian Railway, on which they are free from these vexatious exactions. They have requested the assistance of Sir John Jordan in securing the removal of these impositions, and the refund of the charges which they have already been required to pay.

Sir John Jordan has already called attention to this matter in his note of the 8th April, wherein he pointed out the necessity for prompt action to remedy the present anomalous state of affairs under which the Chinese authorities are assisting, by their fiscal policy, in the development of the trade of the South Manchurian Railway and the port of Dalny at the expense of the Imperial Railways of North China, and the case quoted by the British Cigarette Company is a concrete instance of the need for such action. The interests of commerce and of the Chinese revenue alike demand that trade between Manchuria and other parts of China should he on an equal footing as regards fiscal treatment, and that the present system, which involves an unfair discrimination to the detriment of the Chinese Northern Railways, should be done away with. Sir John Jordan has therefore the honour to urge the pressing necessity for putting a stop to the exactions of the li-kin authorities at Shanhaikuan, so that traffic by the Chinese Northern Railways may be at no disadvan- tage as compared with that carried by the South Manchurian Railway Company. He has also the honour to request that the excessive charges already paid by the British Cigarette Company in the case above referred to may be refunded to them.

Peking, August 13, 1909.

(No. 69.) Sir,

Enclosure 2 in No. 1.

Consul-General Fulford to Sir J. Jordan.

Tien-tsin, November 16, 1909.

IN some connection with the subject of your despatch No. 14 of the 9th April, 1909, to my predecessor regarding exports of native products from Manchurian treaty ports to other treaty ports, and the duties to be charged thereon, I have the honour to enclose copy of a letter dated the 8th instant I have received from Messrs. W. Forbes and Co., and of my reply, dated the 13th instant.

3

Messrs. Forbes and Co. wish to export bean produce from Manchuria to foreign countries viâ Chin Wang Tao, and request to be placed on an equality, so far as taxation is concerned, with merchants exporting such produce at Newchwang and Dalny.

My reply points out the extreme difficulty, if not impossibility, of obtaining the privileges they desire.

The only alternative I can see to the procedure I have sketched for them would be to advocate the principle that native produce intended for export abroad is entitled at all the open marts of Manchuria to pay at the mart in question export duty to the Maritime Customs, and to then be conveyed by railway from said mart to a treaty sea- port, such as Chin Wang Tao, and be exported without further payment either of duty or li-kin.

The difficulty in the way of this procedure is that the Maritime Customs are not functioning at most of the internal treaty marts of Manchuria, and have no control over goods conveyed by the Japanese Manchurian Railway. There is consequently, I believe, no machinery for supervising such a procedure.

Moreover, it would not free the produce from local taxation before it reached an open mart. My suggestion would cover produce from every part of Manchuria. I should be glad to be instructed if you saw fit to press for an addition to the provisional rules of 1907 regarding Manchurian trade in the sense of my alternative procedure.

I have, &c.

Sir,

Enclosure 3 in No. 1.

H. E. FULFORD.

Messrs. Forbes and Co, to Consul-General Fulford.

*

Chinwangiao, North China, November 8, 1909. WE have the honour to bring the following to your notice :—

(a.) That we are desirous of exporting Manchurian yellow beans and hean oil to Great Britain and other places abroad;

(6.) That on investigating the conditions under which shipments may be made from this port we have learnt that the following duties would have to be paid--

1. Li-kin, payable at place of origin or at Shanhaikwan.

2. Half inland duty, at 03 Haik wan taels per picul on beans.

*15

きち

37

3. Export duty, at

*06

*30

21

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>>

bean oil. beans.

bean oil.

(c.) That we have been informed that no ii-kin charges have to be paid en ronte to Dalny or to Newchwang on similar produce conveyed by the South Manchurian Railway, and that half inland duty is not charged at either of these ports;

(d) That on enquiring at the Chinwangtao customs as to the reason for the half inland duty we have been told that the Chinwangtao custom-house does not accept the Shanhaikwan barrier documents as proper li-kin documents, and that failing the production of proper li-kin documents the half inland duty must be charged on ail goods coming from outside the Wall;

(e.) That the charge levied at the Shanhaikwan barrier are about the same in amount as the half inland duty, so that beans and bean oil if shipped from this port would pay double duty as compared with exports from Newchwang and Dalny;

(f) That this condition of affairs makes profitable exportation from this port impossible; and

(g.) That in these circumstances we, as British merchants, venture to ask for your assistance to get the obstacles to business that we have pointed out removed so as to place us on an equality, so far as taxation is concerned, with merchants in Newchwang and Dalny.

We have, &c.

Per pro. W. Mortin Smith,

WILLIAM FORBES AND CO.

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