CO129-384 - Public Offices - 1911 — Page 232

[This Document is the Property of His Britornio

AFFAIRS OF CHINA.

CONFIDENTIAL.

[26061]

No. 1.

229

24603

[July 11.]

SECTION 27 JUL

(No. 221.) Sir,

Sir Edward Grey to Sir J. Jordan,

AS you are aware, the question has recently been raised whether China could, if

Foreign Office, July 11, 1911. she so desired, prohibit the import into her territory of Indian tea. This matter has been dealt with in your despatch No. 217 of the 20th May last and previous correspondence.

It may be convenient for purposes of reference to enumerate the treaty stipulations which would appear to affect the question

Article 11 of the treaty of the 26th June, 1858, between Great Britain and China says, "they" (ie., British subjects)" are permitted to carry on trade with whomsoever they please, and to proceed to and fro at pleasure with their vessels and merchandise.”

Article 26 provides for the revision of the tariff at stated intervals.

Rules were signed by the British and Chinese representatives on the 8th November, 1858; of these---

Rule No. 1 lays down that goods not enumerated in the lists of exports and imports are to pay an ad valorem duty of 5 per cent. calculated on their market value.

Rule No. 3 gave a list of prohibited articles which did not include tea, viz., gunpowder, shot, cannon, fowling-pieces, rifles, muskets, pistols, and all other munitions and implements of war, and salt.

Rule No. 5 laid down regulations regarding the trade in opium, copper cash, rice, pulse, saltpetre, sulphur, brimstone, and spelter.

Under these conditions, it would seem that China has not the right by treaty to prohibit, without mutual consent, the import of any articles not included in the prohibited lists. This view was held by Sir N. O'Conor in a case arising in 1893, when the Chinese refused to allow the importation of certain machinery (Sir N. O'Conor No. 143 of the 19th June, 1893), and was concurred in by the Board of Trade (16th March, 1874).

This view of the case would also seem to be supported and strengthened by article 9 of the treaty of the 21st July, 1896, between China and Japan.

That article contains the following stipulations: "The tariffs and tariff rules now in force between China and the Western Powers shall be applicable to all articles upon importation into China by Japanese subjects or from Japan, or upon exportation from China by Japanese subjects or to Japan. It is clearly understood that

all articles, the importation or exportation of which is not expressly limited or prohibited by the tariffs and tariff rules existing between China and the Western Powers, may be freely imported into and exported from China, subject only to the payment of the stipulated import or export duties."

It would appear that if this privilege cannot be claimed under the above- quoted stipulations of our treaty arrangements it can be claimed under the foregoing clause of the Japanese treaty by virtue of the most-favoured-nation treatment conferred by articles 7, 24, and 54 of treaty of Tien-tsin of the 26th June, 1858.

I va fe

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