CO129-431 - Governor Sir May - 1916 [1-2] — Page 454

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Japan vis Dairen carried by vessels of the Osaka Shosen Kaisha or the Nippon Yusen "Kaisha were accorded the special reduced rates provided for by the Notification in "question, but that hereafter in the case of goods from foreign countries, where application was made for through transport, the destination of the goods being given *as Mukden, there would be no objection to such goods being accorded the same "treatment in regard to freight over the lines of the South Manchuria Railway as goods

coming from Japan.

"No mention of Newchwang was made in this statement, but a notice appeared in "the Manchuria Daily News of the 5th ultimo showing the freight rates to be levied from the 1st October by the South Manchuria Railway on certain specified goods imported into Manchuria via Yingkow (Newchwang). These rates appear to be practically the same as those levied on similar goods entering the country by way of "Dairen or Antung."

Sir John Jordan wishes to know what practical effect, from the point of view of the British merchant in China, the modifications in the policy of the South Manchuria Railway described above, have in alleviating the grievance which arose from the preferential treatment in the way of freight charges originally accorded to goods from Japan.

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This is brought about by the fact that the concession of 30% on specific imports from Japan which became effective on the 1st July is extended to cover through cargo imported at Dairen and Newcbwang by steamers of the Japanese Lines, whereas & reduction of 15% only is allowed on foreign imports which constitute local cargo at the three ports of Newchwang, Dairen, and Aatung, foreign steamers having no facilities for granting through BS/Larling, as the N.Y.K. and O.S.K, are the only Steamship Companies who can obtain the privilege of issuing same through their working arrangement with the South Manchuria Railway Co. discrimination against shipments of local cargo must also be guarded against.

The iniquity of

I have, &c.,

Sir E. D. H. Fraser, R.C.M.G.,

H.M. Consul-General, Shanghai.

H. A. J. MACRAY,

Vice-Chairman.

!

C. E. Anton, Esq.,

Chairman, China Association, Shanghai.

I am, &c.,

E. H. FRASER,

Consul-General.

SIR,

Shanghai Branch to H.B.M. Consul-General, Shanghai.

China Association,

Shanghai, 23rd November, 1914.

I have the honour to acknowledge receipt of your letter of the 23rd October, having reference to the question of preferential rates of freight granted by the South Manchuria Railway to certain through gooda imported from Japan to Manchuria.

The modifications pointed out in your despatch do not alleviate the grievance which arose from the preferential treatment originally accorded to goods from Japan, inasmuch as there still exists a difference of 15% in favour of Japanese goods, as against imports by foreign steamers.

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