1925-11-14 — Page 8

THE HONGKONG DAILY PRESS, SATURDAY, NOVEMBER 14TH, · 1925,

CHINA AND THE SPECIAL TARIFF CONFERENCE, authorities slow to perceive that an in-hands of the matter.

ABSURDITY OF THE "LIKIN" ABOLITION CRY.

WAY OUT OF THE DIFFICULTY BY MEANS OF TRANSIT PASSES.

#Ry-Sp« P. Aatas, Ismereton-GENERAL OF CUSTOME ]

"Tạ vàợm of the importanés attached to the deliberations of the Tarik Cheforenes in Péking, the following articly by Sir F. Aglet, reprinted from the Xipetraeth Century of August, 1924, will be read with very

· considerable intersst. Although written over a yese ago the article, in all essential paints, is applicably to the problem confronting the Tariff Commissioners to-day. The possibility of the abolition of likin is dealt with in great detail and Sir Francis Aglen outline a scheme of transit passes which to suggests might overcome the seemingly insuperable ob-

stacle that the need for likis dues now presents. The Washington Conference raiseil high¦ THE ABOLITION OF LIKIN." expectations in China Tha Chiarie

Underlying the whole proposal is the Government sent an imposing delegation, question of the abolition of likin, and and the Chinese cam was well presented discussion of the interim provisions to and sympathetically received. The re- be applied prior to the abolition of lilin solutions adopted, albeit tentative and is not premature. On the contrary, there exutions, cleared the ground for real; is no subject on which discussion and progress in the direction of fiscal and clear thinking are administrative reforms. If performance! is, inderd, somewhat remarkable that at

more desirable.

It

Possessing no

stitution up in their min and con- Central Government treasury that was, stituting a virtual imperium in imperio, capable of meeting calls of such magni- whose methods made it possible for tude, the rulers of Chins shifted the Peking to call receipts to their utter bunten on to the shoulders of the nation. most copper cash, if it were necessarys, a whole, sad in doing so followed the or expedient to do so, might have & very custom of centuries. Foreign creditors, disturbing effect on provincial finance however, would not be satisfied with In Not that the Court was exigent: the perial edicts unsupported by definite Maritime Customs receipts remained to security, and their representatives who a very considerable extent at the dis-negotiated loans were particular in securi posal of the provincial authorities, Buting them on the only revenus which t accurate, returns, founded on fact in- that time was regarded as peculiarly ni stead of tancy, presented possibilities State revenue. Until, however, the te which had dot previously entered into volution of 1911-19 dislocated all existing | the calculations of provincial treasurers, Spancial arrangements in China no special and for the first time set up a well mark. ed distinction between the provincial and the national exchequer,

RECOGNIZED BY TREATIES. tain were ready for signature the in- By the fine that the Treaties of Tien. perial Maritime Customs Administration was four years old and showed every sign of rigorous growth. The late Sir Robert Hart, who for years was to mould and guide, its destinies was about to take up an important post in the

care was taken to apply Maritime Cus-, toma revenue to loan service. So long as lown instalments were punctually paid the foreign receiving banks asked no ques- tions as to where the money came from.

CENTRALIZING. "EVERYTHING. The revolution changed all this. Mari- time Customs, revenue, till then collected and accounted for but not directly hand-

has halted on ir promise, "the reasoEtention has hitherto been directed almost service. The Treaties recognize the exist led by the foreign side of the Maritime "must be sought in the conditions obtain-selusively to the surtax and its employ.ence of this anomalous institution, and

ing in China, which at the Conference ment

receive, Certainly, when the Confer-

have been worth while.

economists to

TO-

down the flat rate more securely than before, and the Chinese delegates came hack "with the conditional promise of half a loaf in the shape of an immed." with that standing dish the abolition of Likžą. Niedness to say, all China was eager to partake of the promised fare.

COUNTING UNHATCHED

THICKENS,

indirect taxation

4.

A VENERABLE DELUSION.

was

made.

administration,

came

under

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71

It is

IN COURSE OF COMPILATION

THE DIRECTORY

AND CHRONICLE

1926.

FOR CHINA, JAPAN, KOREA, INDOL.'

OHINA, STAM, STRAITS SETTL A MENTS, MALAY STATES, NË-

THERLANDS INDIA, PHILIP-

PINES, BORNEO, ET

SIXTY-FOURTH ANNUAL

ISSUE

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$12

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THE DIRECTORY covers the notabl events, ports and cities of the Far East, from Netherlands India to Biberia, in which Furopeans reside

་

Not only is the Directory sa full and complete each case sa # an be made, but oseb Colony Fort or Settlement is prefaced by a DESCRIP TION, carefully revised each year, the majority of which will serve sa an accurate Gomas TO THE TOURIST, giving avery detail in connection with the places, their History Topography, etc.

The Information in these Descriptions, consist

of a hundred interesting arials, packed with facts concisely set out and containing statistics of the Thann of wach Country and port, would slane suffice to fill a large volume.

The Book is printed from New Type specially reserved for the purpose, and uniformity in every arrangement greatly facilitates reference.

Besides the anal Alphabetical List of Firme„ the Directory gives the CLASSIFIED LISTS of TRADES and PROFESSIONE st the larger Commercial Centres.

The

ALPHABETICAL LIST of BESIDENTS in the Far East contains the names, of, oveT":

20,000 FOREIGNERS.

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The CHRONICLE covers the notable event a Treaties concluded with the countries of together with the Tarts of all the most import- Eastern Asia, the various Customs Tarifa. Trade Regulations, Chamber of Commerce Scales of Commisions, Consular and Court Fees, Hongkong Stamps Datine, Signal Coder, Chinese Festivals, Tables of Money, Weights and Mesures and other Com. mercial Information.

It is published at the Office of the "Howe-

The Directories and Descriptions are of 100

LONG DALT PRESS,"

Peking

Tiantain "Peitsiko

ÜBEKA Scochow

Chinking Nacking

Canton Kowloon Lapp

Chimwangtao Wahu

Antang

Kinkiang Harlow

Manchurian Tochow

C'tres Shsal

Shamans

Kongmoom

Nanning

Wunkow K'Chazwa

Pahoi

it was generally felt that on it depend- | Customs ed the proper fulfilment of those clauses strict control and was taken completely were imperfectly understood. Whether Lik, originally a tax of one-tenth which dealt with the conduct of trade. there is any acute feeling of disappointofa per cent on goods in transit, collect the foreign negotiators regarded the Customs collection became identified a It may with confidence be assumed that out of provincial hands. The Maritime ment if the country at large over the ful as often and at as many points as Maritime Customs as a State rather than Central Government fund in & way un- actual wilt obtained from the" Con. long-suffering traders will consent to a provincial administration. Of all the known before. President Yuan Shih Kai, ference it would be difficult to say... The

pay was imposed during the reign of stipulations contained in the Treaties of in the full tide of his centralizing policy, the last dynasty to replenish an exche terest for the foreign mercantile com

Tientsin none had perhaps so much in attempted to do the same with the salt

revenue, hitherto regarded as the main Chinese are a patient people, and are quer enhausted by the ravages of the munity in China as those which govern. Stay of provinėtal founce, and for a time not accustopied to look for quick returus,

Taiping rebellion. Lilis furnishes &ed the traagis of merchandise inwards he succeeded. The sale revenue was Chinose statesmen, who have nothing to learn in the art of negotiation, probably familiar example of the ease with which and outwards. In the interval between pledged as security for two foreign loans, asked for more than they expected to China and the difficulty of abolishing a king (1943) and the Treaties of Tientsin and these receipts were defnitely ear- can be imposed in the ratification of the Treaty of Van foreign control of receipts was introduced,

ence rated, there was a general feeling his become established. Probably to Bead. Complaints were numerous and similar policy was pursued in the case of charge which, intended to be temporary, (1538) the bugbear it had raised its marked as Central Government funds. A of sarisinetion, and if China had gain- ed a more than the settlement of the word is so familiar to foreign readers loudly voiced. To protect foreign in other inland revenues, notably the wine Shantung question the Conference would of things Chinese as this word hiki. it ports proceding to the interior and and tobacco revenue and the stamp duty. is commonly supposed to be the root of native goods purchased in the interior The provinces were left to fill the vacuum In the matter of the Special Tariff all the evils to which foreign merean for export to foreign countries the caused by the withdrawal of these re- Confereler, however, China feels tile flesh in China is heir. While this transit pass clauses in the Treaties ef venues as best they could. Another turn she has a grievance. She sent her dele- an exaggeration, king undoubtedly Tientsin were specially devised. Foreign was given to the likin screw, recourse wis gates to Washington with very definite has been at the bottom of most of, the merchants were given the option of had to usurious loans, and other even ideas on the subject of tariff autonomy Treaty port disputes between foreign taking out a transit pass at the Mari- more questionable means for raising the

TRANSIT PASSES THE KEY. Consuls and Chinese loent authorities time Cristoms on The Washington Conference, attended by

payment of dues wind were employed. But the vacuum was too great to be filled, and the inevit- in the past 60 years. Blue-hooks in equivalent to half the general tariff duty. foreign statesmen and

The remedy, like all true remedies, whom China's flat rate and ridiculous umerable have been written on the subar of paying inland charges at each and able results of building on an insecure a very simple one, though in beneficial unscientie tariff must have appeared. The archives of every legation, every barrier passed. This compounding foundation were not long in showing them effects it would be far-reaching. the height of fisc absurdity, was at consulate, chamber of commerce, and for provincia! taxation might cuicei selves. The financial structure of the within the competence of the Centralged, with the Initials as well as the Sur-

names in strictly Aphabetical Order, so the least expected to provide it solution custom-house in China are swollen with ably have attained the object, which the State, never at the best of times very Goverment to apply it, and I believe any same can be found instantly. more in accordance with modern the coat prenies likin has raised. negotiators hati in, view, if the Treaties coherent, began to creak, and ere long it that the Government would not be indis.

THE MAPS AND PLANS quirements. This was not even attempt. Several attempts have been made to solve had stipulated. in clear and unmistas collapsed altogether. The Imperial Gor-posed to do so. It may be stated in two ed. On the contrary, Washington nailed the problem, and all have been equally able terms, that the transit dues were ernment had followed precedent and short clauses:

futile.

provincial revenue collected on behalf of sound policy in placing responsibility in (1) Ilemove all restrictions, whether im- the provincial exchequer as a matter of hands which held the power. It had im- posed by treaty or by the Chinese Govern- administrative convenience by the Imposed the burden of supporting the State ment, on the taking out and use of transit Is it possible to abolish likin No peria Maritime Customs, and that in debt on provincial shoulders and had been passes;" into surtax, to be placed on the table.uestion is more frequently put to those up circumstances would they forms part of the provinces by too sudden a reversal toms hands the issue of transit passes, careful not to sap the financial strength (9) While retaining in Maritime Cus- afairs. The answer depends on what is Customs revenue collection No such who have any knowledge of Chinese of, or be included in, the Maritime

of s highly decentralized administra and the duty of collecting the transit meant by the abolition of likin. If by stipulation

The dres, definitely allocate to the provincial The foreign tion which had endured for ages. the phrase is meant the withdrawal by negotiators who dictated the text of the Republican Government, reacting to for exchequer the entire transit dues collec- administrative act of the Central Gev Trenties were evidently unaware, in the eign impulses, in its haste to centralize tion under some arrangement for pro ernment of the right of provincial autho- light of the information at their com authority, has thrown the machine out of ratu distribution. The delegates to Washington had hard-rities to tax goods in transit and in sita, mand concerning Chinese fiscal arrange for state obligations without the power many and various, Treaties confine the gear. It has assumed the responsibility In regard to (1) the restrictions are ly dispersed when proposals for the the answer is unquestionably No. If, meuts, that they were inaugurating spending of the surtax altogether pres on the other hand, all that is meant conflict between the provincial exchequer to meet that responsibility. Power has issue of transit passes to foreign goods mature, seeing that the Special Tarif protection for foreign imports from and a potential rival in the shape of a always been vested in the provinces, and going inland, and to native goods from Conference itself will decide how the the vexatious delays, unauthorized ex national treasury.

there it will remain. Already the provin-, the interior purchased for export abroad. cial authorities have resumed control over These restrictions should be removed. collection shall be applied--cane thick tons, uncertainty, and other abuses in

THE ROOT OF THE EVIL and fast from many quarters. Never herent in this system of taxation, the

a large portion of the salt revenue and All goods, irrespective of their proven- was there such a counting of unhatched answer is just as unquestionably in the

What is remarkable is that this initial all but an insignificant fraction of the ance and ultimate disposal, should be chickens, The Chinese can hardly be affirmative-parcided that the mistake mistake has been confirmed, and persist wine and toimeen revenue and the stamp allowed the protection of the transit pass.

duty. Alone of all the so-called Central | The Chinese Government restricts the use blamed for feeling disappointed. Rati itiated by the frame of the 1858 ed in for 60 years in respect to general Government revenues, the Maritime Cus of outward transit passes to certain limit fication by the contracting Porets of the fentics and persistrit is for six decades merchandise in spite of remonstrance Treaty relating to the Chinese Custoinst not corrected. The proviso has been from foreign merchants themselves and divorte of responsibility from power has imposed in the interests of the skin col

toms collections remain intact

The cd classes of goods. This testriction, italicized, because it contains the crux of the fact that, where, it, was avoided, Tariff was expected to take place as a matter, of course, without andue delay of the whole quesion, but to understand as in the case of the special article produced the situation in China which lectorate, provokes never-ending disputes Two years and a half have elapsed since it a brief degression is necessary. opium, none of the evils attributed to

confronts the world to-day-on empty with foreign Powers. Apart from this the Treaty was sigued, and it is not Previous to the conclusion of treaties the likin system was experienced,

State treasury and a pile of debt.

restriction, the provincial Governments endeavour to limit the use yet fatihed, by all the signatories.

Ten years after the signing of the

of transit Until with foreign States regulating 'sea-borne

THE HOME OF PARADOX. all have ratified the Specia). Tariff Col commerce, about the middle of last cen-Trenties of Tientsin the Shanghai Cham- ferente cannot asible. The delay has tory, there was no well-defined disting ber of Commerce in those days there bankrupt is a half-truth which is as mis-petitor. In regions where likin barriers To assuine from this that China is Passes by all manner of devices in their eagerness to, exclude an unwelcome com... been unfortunate, because Chinese tion, in the modern-senic, between Cen were no Chinese chambers of commerce leading as such statements usually are: luxuriate, those teeming and fertile lands public opinion has crystallized in the tra! Government and provincial finance. put its finger on the spot in weighty The Far East has aptly been termed the intersected by water communications, conviction that, on one pretext er an In theory all revenues belonged to the and carefully-reusoned document which home of the parader. At no period in the they maintain likin tariffe at a rate slight other; matification will be withheld in Emperor, but the system of decentraliza was sambittted to the British Minister. history of China has so much money been ly below the legal transit dues to induce order to force irrelevant issues and that tion pursued under the dynasty, while Sir, Ratherford Alcock, then engaged in made by her industrious, sons, or has so the foreign merchant to avail himself of the Powers were not serious in their pacing on the provinces the respon negotiations for the revision of the much revenue been exacted from her long- his option to pay likin at every barrier promises at Washington. Foreign opinion sibility of raising funds in all national British Treaty of Tientsin. The root of sufferics traders and wasted. Under passed. They pass the word to likin in China is divided: there are many emergencies, allowed to provincial autho- the likin eril lay, according to the view neath the surface of financial muddle, underlings to be strict in the examination who deplore the delay which has taken rities a measure of financial independ of the Chamber of Commerce, in the fact military misrule, and political cross pur- of transit pass cargo and hints of this place; others, and possibly the majority, {ence which practically amounted to fiscal that the collection of what was es82- restive in conditions which give cause autonomy,

Kobe Tribute. in kind and in tially a provincial revenue had been Chinese banking institutions pre multi description are acted and improved upon,

poses the structure is essentially sound; for much anxiety and not a little resent specie, was remitted at regular periods entreated, without qualification, to a plying daily, factories are springing up

ADVANTAGES ALL ROUND. ment. advocate the withholding of the by the provinces for the expenses of the Central "Government administration,

Competition of this kind is the death in all directions of, the very existence of" Conference, as a lever to enforce good capital, but at this period China hau Later on, when difficulties arising. behaviour. This view is general in for contracted no State obligations, foreign from the smuggling of foreign opium which the treaty port dweller is unaware of trade. Remove it, and what will hap eign mercantile quarters and is support for domestic, and the needs of Peking called for special arrangements for its breadth of this vast land there is a-steady sensible to maintain a costly and some everywhere throughout the length and pen? The provincial authorities are too ed by a considerable secting of the for were comparatively few, The provinces entry into and transiting throughout development in the production of wealth. what inefficient administration to collect eign Press, Meanwhile the Chinese, rendered statements of revenue drawn China, the negotiators of the additional

And it is just at this junctare, when a fevenue which can be collected for them disappointed and impatient, have put up with extraordinary minti, frac article to the Chefoo Convention (1855)

so much might be done to point the way without any trouble or cost; transit duos forward the proposal to hold a pre- tions of a tael being carried to as many avoided the mistake made by their pre- towards financial reform, to dispel illu- will take the place of liki, which they liminary conference pending ratification as eight decimal places; these state drcessors. The increased charge impos of the Washington Treaty, and this pro-ments, however, were more in the nature ed on foreign opium, the collection of sons, and to show up farts in their rela- really are, and they will be collected by posal is now under consideration, el estimates than accounts of cash receipts, which was entrusted to the Imperial Conference is blocked because this Power mum of friction. All will be encouraged tion with theories, that the Special Tariff an efficient administration with a mini- I am not of those who stand on the. So long as reported collections did not Maritime Customs, was boldly labelled or that has a special axe to grind, on to take out transit passes, and Chinese side of further delay. The advantages show any serious falling off in compari-ikin. Thereafter foreign opium pene because foreign mercantile interests, de traders will need no encouragement when of a conference, preliminary or special, son with the conventional estimate for trated to every corner of the Chinese spairing of improvement inilisted from they realize that these paases are regard. Tonkin ia which important questions affecting the revenue concerned, the Board of Empire under special transit passes and trade and intercourse will be fully ven levenue was content, and no questions labels isaned by the Imperial Maritime love, are fearful of opening a door which ed with favour instead of frowns by pro tilated, seem to be so patent that it is were asked The Board of Revenue func Customs. These passes, unlike the tran-Government finance is the ultimate and forth to expedite the passage of transit might lead to improvement from below, vincial underlings. The word will go extraordinary that foreign pressure, in- tioned rather as a board of audit than sit passes issued to cover general mer dominating factor in China's present pass. goods and the bottom will fail out stead of Chinese impatience, has nota State treasury, and there wa no chandise, were scrupulously respected by plight, and the Special Tariff Conference, of the likis bucket, been the impelling force. The surtax, well-marked distinction between. the inland revenue administrations, and, so if it were to achieve nothing else, would if granted and properly expended, can national and the provincial exchequer. far as the writer's own experience enables serve a useful purpose in bringing nisny the Central Government would not be not but have far-reaching effects of a The creation, purely fortuitous, of the him to judge, there were never any com obscure features into the glare of pab great.

Barewal Transit dues collected by the nature beneficial to Chinese and for- Imperial Maritime Customs Administra plaints.

lícity. The notion that a surtaxftion in 1854, introduced a change, hurdly

Maritime Customa do eigners alike.

not exceed "THE COMPLICATION OF DEBT. of 2 per cent, ad valorem pa foreign noticed at first, in the financial relations

It would, however, serve a much more $4,500,000 annually, and the beneât from iosports uniformly collected, every cent of the provinces with Peking The re Fundamentally nothing changes very the agenda of the Washington resolutions. on the wheels of trade could be removed, useful purposes, and one strictly within ultimately increased revenue, if this tog of which will ultimately be paid by venue it collected flowed fate the pro much in China. The financial relations It would provide the State treasury with would be out of all proportion to the sums Chinese consumers, can have any harm vincial treasuries it is true, and was re between the provinces and the Central funds which are badly wanted, no matter involved. fal effect on foreign trade is belied by ported by provincial treasurers to the Government are to-day very much what what conditions may be attached to their all experience. One advantage, at any Board of Revenus with other revenue they were in Imperit times. China, bas, disposal, and unquestionably it might be surea here outlined will remove all foreign It is not to be supposed that the mea- rate pertaining to a small flat rate of collections, but the Maritime Customs however, in recent years contracted what made to pave the way for the abolition of complaints provoked by the incidence of duty and so far as can be seen the only rendered statements of cash receipts as is for her a very considerable foreign and likin. An opportunity, which has not pre inland taxation, or attain all the objects. advantage it, posarasen is that it enables noposed to conventional estimates and domestic debt, and has had to set up as sented itself in so favourable a form since aimed at in Article VIII. of the Mackay that rate to be raised with safety within the foreign inspector-general submitted best she could a machinery to deal with the Boxer uprising opened the door to Treaty of 1902an article which remains a very wide margin without any danger at published entirely independent re it. In Imperial times the process was a treaty revision, is now given to correct inoperative. But they might well be con- of affecting appreciably the volume of tarus. It did not take long for the comparatively simple one. Imperial mistake that has persisted for consider-sidered in connection with the interire trade The surtax, however, and the Court to appreciate the fact that bere edicts saddled the provinces with the serably more than half a century, and to set provisions to be applied prior to the uses to which it may be put do not lie was a golden goose industriously laying vice of the foreign loans and the Boxer inward and outward transit trade at the abolition of likin, as called for by Article within the scope of the present article. eggs in ever-increasing number, unham indemnity, and in this way spread the 11th hour on the right road-in a word, III of the Nine Power Treaty relating The subject is already highly contro pred by any conventional restrictions, responsibility of meeting Stato obligato eliminate once for all the conflict to the Chinese Customs Tariff. If adopt- versial, and discussion before the Confer-whose well-being it would be good policy tions. Having issued the enen meets would be premature

necessary between two rival exchequer systems. to cherish. Nor were the provincial] edicta, the Court more or less wathed its

ed they will go far towards solving the, (Continued on next column.) : problem of the abolition of likin...

The financial sacrifice to be made by

Newchwang

Dairan

Yokohama Nagasaki

Bhimonoseki Onsla

Hoihow

Langehow Mengias

Hokow

Szamo Tangynak Changcham

Arthur

Hangchow

Cheloo

Ningpo

Weihaiwei.. Wenchow

Tainaniu Mukden

Bantuso

Foochow

Shanghai Amoy

Harbin Bwalow Lüagchingahan

Kiria Langkow

Huachu

Tokyo

JAPAN & FORMOSA.

Moji

Koolang

Talpeh

Hakodate

Tainan

Kyoto

Takow

Tümeni

BASTIEN SINKKIA.

Anping

Madivostook

Nicolajowik

Seoul

Fingrang

Haiphong

Provinces

Quinhon Annam

* Mokpo Chemnipo

Chinnampe Bongobia

HONGKONG AND. 128 DzzaMormons, Macao, “

Fox Indo-CHISA

Saigon

Uxor (Korea)...‚'

Wonen

Cambodge

Ene Fontane

Okalap

Manila

PHILLIPINKA, Baguio Hicilo

Zamboanga

FOLIXO Brunei

Ook

British North Bornto

Labuss.. Bandakam

Fasan

BANGKOK MALAY ÉTATIES, Fersk

Belanger Negri Sembilan Jakors Kalantan da

Trenggana

Pahang

Kedah

Ferliz

Singapore, Penang, Maincon, Prov. Wollonia

Balavin

NETHERLANDS LUDIA. Bamarang Surabaya Fart Court of Bumatra.

Buitenzorg

Padang

BRE AND AMERICAN SQUADRON 419 CHINA AND JARAN,

OFFICERS OF COAT BITEN BEZAKED