The Archive · 1896

PROPUSED ''ARIFF ON LOCAL MANUFACTURES

Copy of a Memorial from the Tsungli Yamen, (Shénpao, 11th August, 1896.)

Yourservants, the Ministers of the Tsungli Yamen, on their ness present a Memorial with regard to the settlement of the tariff on manufactured goods, in order to maintain due regard for the public revenue and to secure substantial profit. Prostrate, they pray for the sacred glance on the memorial which they have reverently prepared.

We would observe with regard to the manufacture of goods by machinery at the various Treaty Ports, as for instance, the cotton manufacture and silk filature in the South, and the manufacture of grape wine in the North, that on several occasions the Superintendents of Trade for the Northern and Southern Ports have memorialised requesting that such produce shall only pay the export duty, or they have requested that both Customs Duty and L he remitted for some years, the intention being to benefit the people at the expense of the Government in the hope of giving an impetus to trade. At that time there was no express stipulation regarding the manufacture of goods by foreign merchants and it was deemed advisable to act in accordance with the exigencies of affairs. After the conclusion of the Treaty of Shimonoseki, foreign merchants of all nationalities were empowered to manufacture native produce. As former Treaties do not provide for this contingency, it is imperative to devise some equitable mode of action calculated arrest the drain on the country's resources, and to deprive (foreigners) of a pretext (i.e., for demanding the abatement or abolition of duties) at the present moment. Japanese merchants are buying and in Shanghai for the erection of factories, and the merchants of other nationalities are also establishing factories in great numbers. Thus, in the twinkling ofan eye, steam factories are established at the Treaty Ports as thick as trees, and commodities of all kinds overflow Those who enjoy the advantages accruing from these manufactures should also incur the responsibility of paying duties. In the case of a new undertaking like this, it is Very necessary to settle uniform tariff regulations without making distinctions in virtue of which some pay heavier and others lighter duties; so that it may be easy for all to conform therewith. We find that foreign merchants importing foreign produce, pay, in the majority of cases, an import duty of 5 per cent. On sending the goods into the interior, a further transit duty of Tls. 2, 5 mace is charged. Foreign merchants purchasing native produce in the interior under Transit Pass, pay in addition to the export duty the half or transit. duty, after which they are at liberty to export the goods. Foreign merchants carrying produce for sale, whether for import or export, pay no further duties beyond the Customs duty and the transit duty; but native produce which has not yet reached the foreign consignee, and foreign produce which has been delivered to the native purchaser must both pay likin to supply the deficient cies in the revenue. Moreover, where goods are manufactured by machinery (in China) lighterage, freight, insurance, and coolie hire are all saved, less capital is required and ofts are abundant. Your memorialists Raving deliberated together would suggest that, leaving the Viceroys and Governors of the various provinces to fix the amount of the loti shui and likin due on native produce at the plice of production; manufactured produce, whether Chinese or foreign, should, before it leaves the plice of manufacture, pay double the duty of five per cent prescribed in the case of foreign exports, so as to supplement the likin payable in the interior. This amounts toa duty of 10 per cent, Hereafter, whatever be their destination, all goods will be exempt from likin; the gan in duties balancing the loss in likin, so that the public revenue will remain. at its present figure. At the present funds are unusually scarce, and liabilities multifarious. This is not an extravagant project to "mend the fold when the sheep has gone," but the intention is "to make use of the guest (foreigner) in order to establish the host (China)." The tu the soil of China and should know how tive merchant eats the produce and dwells

difficult it is for the Government to devise expedients. The goods of the foreign merchant find a ready market, and it is only right to have in view the sume treatment for all.

Should your Imperial Majesty's assent to received, memorialists will communicate with the Superintendents of Trade for the northern and southern ports, desiring them to direct the Superintendents of Customs take uniform action in accordance with the above suggestions.

In duty bound we present this memorial reverently prepared setting forth. the proposed tariff regulations to govern manufactured goods. Prostrate we pray for your Majesty's sacred glance thereon and that you may be pleased to let us know your pleasure, A reverent memorial.

Furthermore—The following representation has reached the Yamen of your memorialists from Sir Robert Hart, the Inspector-General of Customs "Since China has been opened to foreign trade, goods coming from or going into the interior either paid likin, or transit duty. Foreign merchants' goods going into the interior, having paid the transit duty and received a transit duty certificate, thereupon become exempt from paying likin rowe. This procedure applies equally to both Chinese and foreign merchants. under it Pass is exempt from Native produce coming from the interior

enroute, and is only under the necessity on reaching a port to pay the transit duty, after which it is exported. This privilege is confined to foreign merchants and Chinese merchants are not entitled to it. But it frequently happens that Chinese merchants fraudulently induce the various foreign firms to purchase and bring down native produce, their object being to evade the payment of

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