THE HONGKONG WEEKLY PRESS AND
DIFFERENTIAL DUTIES AND THE foreigners at a disadvantage, even if the
WEST RIVER TRADE.
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[July 15, 1897.
France reaped her reward for the services question of the difference in the duty pay- she recently rendered to China in connec- able did not exist. The object of the whole tion with the conclusion of peace with Japan While there can be no doubt that the arrangement is in effect to give to the Chi-and the financial assistance she lent in the opening of the West River will lead to a nese company a monopoly of the entire im- payments on account of the war indemnity large expansion of trade in foreign goods, it port trade of the province in the two articles All the other Powers that have interests is to be feared that, unless strong pressure of kerosine and matches, and it is under- to safeguard in China, the article continues, be brought to bear in order to secure equal stood that the monopoly will ultimately "have known how to help themselves to a be extended to all other classes treatment for Chinese and foreigners, the
"slice of the coveted cake, even those who The latter will very soon be ousted from all of imports.
matter is one that "had no claim on the liberality of the direct share in the business of distribu- should command. the attention of the "Celestial Empire. Russia has extended tion. This is what has happened or is hap-Chamber of Commerce and be strongly "herself in Manchuria, the English, under
An ana: pening at most of the other treaty ports. As represented to the Government.
"the pretext of a rectification of the
frontier, Mr. BRENAN points out in his recent report, logy exists between this case and that of
have largely aggrandised "themselves on the Burmese frontier, the importation of foreign goods into China the preferential duties levied on junk borne takes place almost entirely through the Brit- goods at Canton. The arrangement may
"and even Germany has extorted conces "sions. We alone have up to the present ish colony of Hongkong in the south and not for the time being diminish the volume
"obtained nothing. The possession of the through the treaty port of Shanghai; from of the trade, but it shuts out the for-
Some island of Hainan would be of capital im- these two great entrepots of the China trade eigners from participation in it. all the other ports are supplied, and at the time ago a combination was formed at portance to us. Not only would it be of outports the foreign merchant is ceasing to Pakhoi to shut out a French line of "great assistance in assuring tranquillity exist. The Chinese merchant naturally steamers from participation in the carrying throughout the Gulf of Tonkin, but it "would give us, on the south coast of China, possesses advantages in his own country, trade of that port, but by the prompt and so long as those advantages are exercised action of the French diplomatic autho- a strategic point that would counterbalance fairly no ground of objection exists, rities the combination was broken up Hongkong. We have already committed but
"the fault, twelve years ago, of letting any attempt to reinforce them and payment of an indemnity for the
"Formosa and the Pescadores slip through unfair discrimination against loss of business to the French Company foreigners should be resisted to the ut agreed to. A combination to exclude for- our fingers; let us not allow to be appro- most. The opportunity for such resistance eigners from the distribution trade is priated by others, who do not share our presents itself at Wuchow, where the modus equally illegal, being opposed both "foolish scruples, a territory which would operandi by which foreigners are to be the spirit and letter of the treaties, eliminated from the local trade has been and ought to be broken up as readily. made quite plain. A Chinese Company At Canton, the collection of lekin on has been formed to farm the collection kersoine is also farmed out, but there the of lekin on kerosine and matches in Kwang- lekin farmers are not themselves importers, si, and the same Company is also an im- and the tax is levied equally on the oil porting concern. It is intended ultimately imported by Chinese and on that imported to extend the Company's operations to piece by foreigners. Under those circumstances goods and other articles of import, but for
we may dispute the legality of the tax the present kerosine and matches alone are
in toto, but, admitting the tax, there is no affected. How the arrangement is to be made complaint to be made as to its incidence. to cut the foreigner's throat we will proceed At Wuchow, on the other hand, not only to show. The Company pays the nom may objection be taken to the tax itself-- inal sum of $10,000 per annum (though the Foreign Powers have unfortu- for the privilege of collecting the lekin nately given away their case on that point) payable throughout the province on the
-but it is grossly unfair in its incidence, two articles mentioned. On kerosine the being levied in full on goods in the lekin is 30 cents per case and on hands of foreigners while a powerful matches 10 per cent. The import of kerosine Chinese Company is allowed is estimated at 200,000 cases, which should pound for it by the payment of a com- yield a lekin revenue of $60,000, paratively small lump sum per annum and and that of matches also at 200,000. cases, so secure a monopoly of the whole trade. which should yield $40,000, making a total The full and complete remedy for such of $100,000, as against the $10,000 paid by abuses throughout the whole country would the Company. To the latter sum must be be to replace the present lekin collectorate/ioration of the condition of the people, and
added the expenses of collection, and, no doubt, a division of the profits with the officials, but after making all allowances on these accounts it will be seen that an ample margin must remain which will enable the Company to sell its · own imports at rates to undercut the foreigner. The latter has to pay 5 per cent. import duty, 24 per cent, transit duty if the goods are sent into the interior, and on kerosine 30 cents per case for lekin, making in all say 45 cents, while the Chinese Company pays simply the 5 per cent. import duty, say 10 cents, to the Foreign Customs, and all other charges are covered by the lump sum of $10,000 per annum, no matter what quantity of goods may be imported, so that if the estimate of the import of kerosine and matches be anywhere near the mark, the amount paid to the Govern- ment on each case must be somewhere in the neighbourhood of a quarter, and cer- tainly much less than half, that paid by the foreigner. Competition on the part of the latter is under such circumstances impossible. There is also a regulation, authorised by the Government of Kwangsi, by which all goods must bear a ticket certifying that they have paid the lekin, and without this ticket goods cannot be sold. The working of this regula- tion is such, we understand, as to place
to
to com-
by a foreign administration on the model of the foreign maritime customs, but as that is a reform not likely to be secured very soon the glaring case of Kwangsi ought to be dealt with at once on its own merits.
FRENCH Desgins oN HAINAN
I
In a recent issue we published a letter from a Hoihow correspondent in which it was stated that a strong opinion was entertained by the Chinese that the French were only awaiting a good opportu- nity to take the island of Hainan under the fostering care of the tricolour, and par- ticulars were given of a visit of the French flagship Bayard to Yulingkang Bay, and certain surveying operations carried out there, which seemed to lend support to that opinion. In its issue of the 3rd July the Avenir du Tonkin gives a translation of our correspondent's remarks on the subject, with a running commentary, and so far from contradicting or throwing doubt on the reports current as to French intentions, our contemporary contents itself by expres- sing the hope that the reports may be true, though the writer does not appear to have any independent information as to whether they are so or not. It is time, he says, that
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greatly consolidate our position in Indo- "China. Moreover, as it is only an island that is in question, and not a strip of "Continental territory, it would not be "difficult for our diplomatists to ob- "tain this concession from the Court of Peking." On the latter point at all events our contemporary is mistaken. The Court of Peking will make no concession of territory, whether on the Continent or in her island possessions, save under severe France a present of Hainan if she can pressure. She will certainly not make help it. In the event, however, of such a transaction being put through, we do not know that Great Britain would have any more reason to protest than she had in the case of Japan's acquisition of Formosa. Indeed, if it were not for France's declared policy of shutting out British trade wher- ever possible we might cheerfully welcome the transfer of any portion of Chinese territory to the tricolour, as promising a more enlightened administration, an amel-
an increased commerce. So long, however, as France pursues her policy of building up
a wall of differential tariffs for the exclusion of British trade it cannot be expected that her schemes of territorial aggrandisement shonld be regarded otherwise than coldly by Great Britain. As to the strategical importance of Hainan as a counterpoise to Hongkong, a point to which our Tonkin contemporary appears to attach some-im- portance, we could afford to regard the matter with equanimity from that point of view.
II.
As we remarked a few days ago, the British Government would probably raise little objection to the acquisition of Hainan by France, if such a step were really in con- templation. The assurances of our Tonkin contemporary notwithstanding, however, we do not believe the French Government have any intention of asking for the island. If they were negotiating for such a con- cession, they would hardly, we think, be withdrawing a large part of their already slender European force from Indo-China, which is actually the fact. Our Gallic friends are not so badly informed but that they have ascertained the probable capa- bilities and known resources of the island in question. They are aware that beyond
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