CO129-491 - Public Offices - 1925 — Page 78

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other than China in respect of the most-favoured-nation clauses. That was his understanding of it.

M. SARRAUT said that he took note of Mr. Root's declarations and would refer to them if necessary. He felt he must point out, however, that if the text of the resolutions alone was considered it did not directly appear that the most- favoured-nation clause did not automatically apply. In view of Mr. Root's explana- tions, however, he would not insist further upon the matter.

SIR AUCKLAND GEDDES said he assumed it was quite clear this was the way in which he read this paragraph that, so far as the treaties referred to bound countries other than China now, they would bind only those countries afterwards; and that the provisions, for instance, of the Chinese-American treaty would not be extended to Chinese-British relations?

MR. ROOT said he had no doubt of that.

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And in paragraph 9 of the aforesaid agreement it is further provided that that- agreement shall override all provisions of treaties between China and the Powers which are inconsistent with its terms.

4. I have the honour to say that, while India is prepared to accept the principle that the rates of customs duties levied on all the frontiers, land and maritime, of China should be uniform, it should be clearly understood, with reference to paragraph 2 of this letter, that the arrangements made to give effect to this principle will restore to India the right to impose import duty on Chinese manufacures or produce entering Burmah and export duty on British manufactures and Burmese produce exported to China by land, should she so desire, and that no further action on her part under article 19 of the convention of the 1st March, 1894, will be required. In this connection 1 have the honour to point out that, at the meeting of the Sub-Committee on Chinese Tariff held on the 28th December, Sir Robert Borden mentioned that, if India renounces the preference at present enjoyed under the terms of that convention referred to in paragraph 2 of this letter, she would recover her freedom as to the treatment of Chinese trade, and it was understood that your delegation had no objection to this.

I have, &c.

V. SRINIVASA SASTRI.

Your Excellency,

ANNEX (E).

Duties on Land-borne Goods.

(i)—Mr. Sastri to Mr. Sze.

Franklin Square Hotel,

Washington, January 9, 1922. I have the honour to address you on the subject of the reductions now applicable to the customs duties collected on goods imported into and exported from China by land.

2. The arrangement between India and China regarding the import and export of goods by land is contained in articles 8 and 9 of the convention of the 1st March, 1894, between Great Britain and China. The substance of these articles is as follows:-

Article 8. The British Government agreed :-

(1.) Chinese produce and manufactures, with the exception of salt, to enter

Burmah by land free of duty;

(2.) British manufactures and Burmese produce, with the exception of

rice, to be exported to China by land free of duty;

(3.) The import duty on salt and the export duty on rice not to be higher

than the duties on import or export by sea.

Article 9. The Chinese Government agreed

(1.) The duty on goods imported by land by certain specified routes from Burmah to China to be less by three-tenths than the duties specified in the general tariff of maritime customs;

(2) The duty on goods exported from China by those routes to be less by four-tenths than the duties specified in the general tariff of maritime

customs.

Under article 19 these arrangements were subject to revision after six years at the demand of either party, or sooner should both Governments desire it. They are, however, still in force.

3. As you are aware, paragraph 6 of the proposed agreement on the Chinese maritime customs tariff makes the following provision:-

"That the principle of uniformity in the rates of customs duties levied on all the frontiers, land and maritime, of China be recognised, and that it be referred to the special conference mentioned in paragraph 1 to make arrange- ments to give practical effect to this principle, with power to authorise any adjustments which may appear equitable in cases in which the customs privilege to be abolished was granted in return for some local economic favour.

In the meantime any increase in the rates of customs duties or surtax imposed in pursuance of the present agreement shall be levied at a uniform rate ad calorem on all frontiers, land and maritime."

Your Excellency,

(ii)--Mr. Sze to Mr. Sastri.

Chinese Delegation,

Washington, January 16, 1922.

I have the honour to acknowledge the receipt of your Excellency's note of the 9th instant on the subject of the reductions now applicable to the customs duties collected on goods imported into and exported from China by land.

It will be recalled that, at the meeting of the Sub-Committee on Chinese Revenue held on the 4th instant, my colleague, Mr. V. K. Wellington Koo, speaking of the expression in return for some focal economic favour" in paragraph 6 of the proposed agreement on the Chinese maritime customs tariff, observed, and it was understood that the observation was tacitly accepted as correct by the other members of the sub-committee, that the said expression could refer only to that which was clearly quid pro quo for the tariff reduction in question. As the provisions of articles 8 and 9 of the convention of the 1st March, 1894, between China and Great Britain appear clearly to be reciprocal considerations one for the other. I have the honour to state, in reply, that it is understood that the arrangements made to give effect to the principle of uniformity in the rates of customs duties levied on all the frontiers, land and maritime, of China would restore the right to India, should she so desire, to impose duty on Chinese manufactures or produce entering Burmah and export duty on British manufactures and Burmese produce exported to China by land, and that no further action would be required on India's part to revise the said convention of the 1st March, 1894.

I have, &c.

ANNEX (F).

SAO KE ALFRED SZE.

Duties on Land-borne Goods,

Mr. Odagiri's Statement at Sub-Committee Meeting on December 28, 1921.

With reference to the abolition of the reduction of duties on goods imported into China or exported from that country by land, Japan is ready to agree to the proposal if all the other countries concerned that is, Great Britain, France and Russia-likewise agree, provided that the proposed abolition be carried out simultaneously on all the frontiers of China, and further provided that, in view of the present state of affairs in Russia, China gives a special guarantee for the abolition of the reduction of the land customs duties on the Russo-Chinese frontier, and also provided that the proposed abolition be brought into force from the date on which the proposed surtax shall have been carried into effect.

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F

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