CO129-517-1 Administration and function of Chinese Maritime customs- prevention of smuggling across Chinese frontiers 7-2-1929 - 15-11-1929 — Page 168

Copy.

(F 1906/1194/10)

CONFIDENTIAL

176

CHINESE MARITIME CUSTOMS

(including MARINE DEPARTMENT):

nature of Chinese Government

control, explained.

When the city of Shanghai was captured in 1853

by the Triad Society (

}

-

a local body of

and

rebels acting on the inspiration of the Taiping success

the Chinese Custom House was closed by force majeure;

for a time, therefore, there was no competent Chinese

Authority to collect the revenue due from the foreign trade

The foreign merchants, then chiefly American

of Shanghai.

This

and British, had in general no desire to evade taxation,

which had been placed on a just and moderate basis by the

Treaties of 1842, etc.; and the Consuls, armed with

extraterritorial jurisdiction, conceived it to be their

duty to control as well as protect their nationals.

being understood, the first step taken to tide over the

moratorium was an arrangement by which foreign merchants deposited at the Consulates bonds for the duty leviable on

the goods concerned. This temporary arrangement was

replaced by the appointment of a Board of three foreign Inspectors, only one of whom possessed a knowledge of the Chinese language Captain (afterwards Sir) Thomas F. Wade,

and on his shoulders fell the burden of organising the new

office. Later on he resigned, and was succeeded by Mr.

Horatio Nelson Lay, who had an equal knowledge of Chinese.

It should be considered, moreover, that the semi-foreign

organisation........