Directory_and_Chronicle_1933 — Page 82

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THE BRITISH COMMERCIAL TREATY WITH CHINA

"In the negotiations now being conducted with Great Britain for the amendment "of the Commercial Treaties, a mutual arrangement has been come to providing for "the imposition of additional taxes, in compensation for the abolition of all kinds of "lekin and other imposts on goods, prohibited by Article VIII. After payment of "interest and sinking fund on the existing foreign loan, to the extent to which lekin "is thereto pledged, these additional taxes shall be allocated to the various Provinces "to make up deficiencies and replace revenue, in order that no hardships may be "entailed on them. With a view to preserving the original intention underlying the "proposal to increase the duties in compensation for the loss of revenue derived from "lekin and other imposts on goods, it is further stipulated that the surtaxes shall not "be appropriated for other purposes, shall not form part of the Imperial Maritime "Customs revenue proper, and shall in no case be pledged as security for any new "foreign loan.

"It is therefore necessary to memorialize for the issue of an Edict, giving effect "to the above stipulations and directing the Board of Revenue to find out what "proportion of the provincial revenues derived from lekin of all kinds, now about "to be abolished, each Province has hitherto had to remit, and what proportion it "has been entitled to retain, so that, when the Article comes into operation, due "apportionment may be made accordingly, thus providing the Provinces with funds "available for local expenditure and displaying equitable and just treatment towards "all."

On the 1st instant an Imperial Decree "Let action, as requested, be taken,” was issued, and we now do ourselves the honour reverently to transcribe the same for your information.

ANNEX B- (2)

Shanghai, September 5th, 1902.

GENTLEMEN,

I have the honour to acknowledge the receipt of your despatch of the 2nd instant forwarding the text of the Memorial and Decree dealing with the disposal of the

surtaxes.

I understand that the surtaxes in addition to not being pledged for any new foreign loan are not to be pledged to, or held to be security for, liabilities already contracted by China except in so far as lekin revenue has already been pledged to an existing loan.

I also understand from the Memorial that the whole of the surtaxes provided by Article VIII. of the New Treaty goes to the Provinces in proportions to be agreed upon between them and the Board of Revenue, but that out of these surtaxes each Province is obliged to remit to Peking the same contribution as that which it has hitherto remitted out of its lekin collections, and that the Provinces also provide as hitherto out of these surtaxes whatever funds may be necessary for the service of the foreign loan to which lekin is partly pledged.

I hope Your Excellencies will send me a reply to this despatch and that you wilk agree to this correspondence forming part of the Treaty as an Annex.

I have the honour to be,

Gentlemen,

Their Excellencies,

Your obedient Servant,

(Signed)

JAS. L. MACKAY.

LU HAI-HUAN and SHENG HSUAN-HUAI,

etc.,

etc.,

etc.