From an authoritative source, it} was. learned that the purpose of the conversion of the basis' for feallection of Customs duties on imports from abroad from Haikuan' taels to a now gold unit was to protect the position of Cust secured debts and to avoid serian Toss of revenues by reason of the higher cost of gold, remittances.
The Government remits abroad each year approximately £0,000,000 to meet its obligations. In February. 1929, when tariff autonomy became effective, one Shanghai tael could buy 2/7;. now, one Shanghai tael jean only buy 2/04 which nets the Government. a loss of 26 per cent, To correct this situation, a plan has been devised which was made [effective in accordance with the instructions of the Minister of Finance to the Chinese Maritime Custom:
Ta accordance with this plan, the conversion of the standard fon collecting Customs duties will be accomplished in two phases. The first, beginning on February 1 and nding March 18 takes 8. the Exchange rate 2/24 which was the average rate for the last quarter of 1929. The second, beginning on March 16 takes 2/77 which "was the average rate for January 1929, an the rate of conversions This new system will be applied only to specific duties on- imports from abroad. It will not affect inter-port duties nor exports, It does not affect ad valorem duties, Wrhich are expressed in percentages based on gold invoice values, The following explanation in. deta of the working of the new System maybe accepted authoritative!
The Haikuan tael is a hypothetical unit, for. Customs purposes ily The rai at present Tis, 11140, at kuan Tls. 100 equals Shanghad The new unit has a gold value of Gold $0.40 or about 20d, On February 1, the Haikuan tael will be taken to be equal to 150 of the new unit. AL current ca change, the Haikuan taal worth about Gold $0.56 or about 28d. Thus, on February 1, when the frst phase of the new system becomes effective, the Haikuan tael will be valued at Gold $0.60, or about 30d.
Text read from the printed page and cleaned; old type leaves the occasional error.