Mr. Burlingame to Mr. Seward

No. 46.]

Sir: I am most happy to inform you that the imperial government, in response to my request for an extension of time in which to re-export native produce, from three to twelve months, has most handsomely met my wishes.

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This change will do much for the trade of all nations, and puts us under many obligations to the Chinese. You will find the correspondence attached, marked A, B, and C.

I have the honor to be, sir, your obedient servant,

ANSON BURLINGAME.

Hon. William H. Seward, Secretary of State.

A.

Mr. Burlingame to Prince Kung

I have the honor to inform your Imperial Highness that that portion of the Yangtsze-Kiang regulations which requires native produce to be re-exported within three months, if the merchant would recover the coast trade duty charged at the river port, has been found to work a great hardship both to Chinese and foreigners, and I most respectfully request that the time may be extended to twelve months.

If it is not done, the merchants in Shanghai will be compelled to open large establishments in the interior, thus overthrowing the business arrangements of the Chinese, and creating fresh sources of trouble. Now the Chinese hesitate about sending goods to Shanghai for sale, because, if by any chance cause sales are delayed for three months, they will lose the coast trade duty. Indeed, it has been found impossible to sell goods within the three months allowed. Thus this rule is a positive hindrance to commerce, and deprives the imperial government of those revenues it would otherwise receive from a larger sale of produce. The change I ask would not hurt anybody, but would help everybody.

I therefore feel confident that your Imperial Highness will hasten to relieve commerce from the burdens put upon it by that rule.

I have, &c.,

ANSON BURLINGAME.

Prince Kung, Chief Secretary for Foreign Affairs.

B.

Prince Kung to Mr. Burlingame

His Imperial Highness Prince Kung, chief secretary of the Chinese government for foreign affairs, herewith replies:

I have the honor to acknowledge a communication from your excellency, in which you show that the drawback certificates for half duty on goods stored for re-export should not be limited to three months, a period much too short, but ought to be extended to a full year. It appears that the merchants who bring native produce down the Yangtsze-Kiang to Shanghai pay full tariff export duty when it leaves its original port, and half duty when to be re-exported to another port. Such produce being duly reported to the customs, when the merchant wishes to send it out of port, pays half duty; and if it is within three months, he can re-enter it at another port on presentation of the drawback certificate, which is received as valid for the duty.

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Now, since that, in the despatch under reply, your excellency observes that the time for three months, allowed in the drawback certificates, during which this produce must be re-exported, must be regarded as much too short, I have extended the limit to a year. Therefore, after this date, whenever produce, brought down the Yangtsy to Shanghai, has been reported to the customs for re-exportation at any time within a year, they shall, on ascertaining that the goods are in their original packages, neither broken open nor abstracted from, and their number and weight correct, and all particulars tally with the original report, grant a drawback certificate for half-duty, to be substituted for the former certificate, and delivered to the holder of the goods, as evidence of the duty having been paid.

I shall inform the superintendent of commerce respecting this regulation, and instruct him to send orders to the customs officers for them to act accordingly, and I now likewise send this reply to your excellency, requesting that you will inform yourself upon the whole subject.

His Excellency Anson Burlingame, &c., &c., &c.

C.

Mr. Burlingame to Prince Kung

Sir: Permit me to thank your Imperial Highness most cordially for extending the time in which to re-export native produce from three months to one year. The change will do much to facilitate trade and to strengthen the friendly relations already existing between our two countries.

I have, &c.,

ANSON BURLINGAME.

His Imperial Highness Prince Kung, Chief Secretary of Foreign Affairs.