Papers Relating to Foreign Affairs, Accompanying the Annual Message of the President to the First Session Thirty-eighth Congress, Part II

Mr. George F. Seward to Mr. Seward.

No. 536.]

Consulate of the United States, Shanghai, February 21, 1863.

Sir: Referring to the revised river regulations, a copy of which is enclosed, I have the honor to point out to you the urgent need existing for a consul at Chin-kiang.

By the regulations duties are collectable at Chin-kiang, Kiu-kiang, and Han-kow. Chin-kiang is situated on the banks of the Yangtsze, above the arm of the sea which forms its debouchure. Kiu-kiang and Han-kow are further up, and, respectively, about 350 and 450 miles from Chin-kiang. The commerce of the river is confined to the upper ports, and Chin-kiang has as yet no importance beyond that derived from its character as a barrier.

In order to prevent trade at other places than those named in the regulations, and consequent loss to the revenue, a most rigid scrutiny into the movement of vessels is enforced. This scrutiny is followed, when frauds are discovered, by a confiscation of vessel or cargo, or both.

The investigation of cases of suspected or detected frauds falls in most instances at Chin-kiang. Why, will be readily understood by recalling its position and the distance to the next declared port.

In the absence of a consul these investigations are conducted by the Chinese local authorities. The case stands, then, that our immense interests on the Yangtsze are abandoned to the caprice or avarice of Chinese officers.

That such abandonment works vast detriment to our interests is manifest. The great theories of the treaties of the western nations with China indicates that detriment is to be expected from such premises, and the facts of the instance declare in the same direction. American property, to the value of not less than $50,000, has been confiscated at Chin-kiang since the 1st of January. It would be hard to say that our citizens have not suffered any injustice in this way.

A consul at Chin-kiang must be carefully chosen and well salaried; this, because he will need firmness and prudence to secure justice for his countrymen and to avoid collisions with the authorities, and because the expenses of living in this part of China are incredibly high; nothing less than $3,500 per year will suffice.

I would urge the matter more at length did I think it would give more force to the argument to do so; as it seems to me, however, that the facts will carry their own comments, I desire to add only that other western nations are wiser in their relations of this nature than we. To such an extent is this true, that I venture to assert that nothing but the indomitable enterprise and uniform good sense of our people enable them to sustain an unequal competition with the subjects of other powers.

Could this fact be impressed upon the minds of our legislators I should feel vastly more confident of the future of our commercial interests.

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

GEORGE F. SEWARD, United States Consul.

Hon. William H. Seward, Secretary of State.

[From the North China Herald of December 13, 1862.]

Revised regulations of trade on the Yangtsze-kiang.

To the Editor of the North China Herald:

Mr. Editor: As your distant readers cannot be supposed to understand the question of the navigation on the Yangtsze-kiang, nor to appreciate the importance of the retrograde step lately taken by the English and American ministers, it may be useful to state clearly why the community of Shanghai are surprised and disappointed by the “revised regulations” to the degree shown by the recent contributions to the press. I propose, therefore, to state as briefly as possible some of the main points of the case.

First, then: the Yangtsze-kiang flows for many hundred miles through the richest provinces of China, and the products of an exceedingly active and industrious people, numbering many times the population of Great Britain, can best reach a market from its banks, which present an immense number of points from which native goods can be sent to the treaty ports, and at which foreign merchandise can be conveniently delivered. Between these various points, also, a very extensive commerce was formerly carried on, and this commerce, although now paralyzed by the rebellion, was likely to increase immensely as soon as steam was thoroughly applied to it. I should waste time, and pay a poor compliment to the intelligence of your readers, were I to enlarge upon the advantages to arise from unrestricted commerce on so great a river, or upon the increase of revenue to the imperial government which must surely have followed. Suffice it to say that the gain to all parties concerned must have been enormous.

Now, Mr. Editor, this magnificent domain for the development of commerce was supposed to have been once and forever conquered for free trade by Lord Elgin in 1858, and the following are some of the grounds upon which this supposition was based:

1st. By the English treaty of 1858 the whole interior of China was opened to foreigners, who were declared to be at liberty to go everywhere for the purposes of trade, and even to build houses, warehouses, &c., wherever they pleased.

2d. By a special article of the same treaty (No. 10) it was agreed that “British ships shall have authority to trade upon great river (Yangtsze,)” and it was, moreover, agreed that three ports of entry should be established upon the river after its waters were freed from the insurgents.

3d. The establishment of these three ports of entry (as provided for in the latter portion of the 10th article of the treaty above alluded to) was not meant to limit foreign trade to these points, but its object was simply to furnish convenient places at which merchandise from without could be entered direct, and from which native products could be cleared direct for foreign places.

This is apparent from the general tone of the treaty, and also from the fact that the 10th article begins in the Chinese version of the treaty with the following words: “on the long river, throughout, at every opening, English merchant vessels may traffic.”

It is also apparent from the fact that Lord Elgin speaks of his arrangements for the opening of the river in 1861 as being convenient “for the whole coast trade of the river,” which accordingly was left open to foreign ships by the regulations established under his instructions by Sir Harry Parkes early in that year; and, in order that no portion of the river banks should be even temporarily closed, Admiral Hope followed up the policy of Lord Elgin by a convention with the chiefs of the insurgents, providing for the security of commerce within the regions which were occupied or might afterwards be conquered by them.

Accordingly, foreign vessels traded freely upon the banks of the river, and steamers have brought large quantities of native produce from various points direct to Shanghai, to the great advantage of both foreign and native commerce, inasmuch as the products of several districts cannot be carried to either Hankow, Kiu-kiang, or Chin-kiang, without great expense and delay.

These things being once clearly understood, your distant readers, Mr. Editor, will be able to comprehend the recent surprise and disappointment of the community of Shanghai upon the publication of regulations which declared that only three points on the river could be visited by foreign vessels, and that the loading or unloading of cargo at any other point would be punished by the confiscation of vessel and cargo.

We see that these regulations destroy the brilliant prospects which were opened to foreign commerce, by making free the entire trade of the river; we see that native commerce must suffer even more than our own; and we see that the imperial revenue must be injured pari passu with commerce. We see that all this could have been easily made manifest, even to Chinese ignorance of political economy; and that a further unanswerable argument could have been found in the fact, that by Admiral Hope’s convention with the insurgents a large extent of country not in the possession of the Chinese imperial government was actually open to foreign ships. How could this government, after availing itself of foreign aid against the insurgents, undertake to expel foreign trade from the territory conquered from the insurgents? With what face could they do this, even if the liberty “to traffic at every opening on the river” had not been previously given by themselves, and even if the free trade about to be destroyed could have been prejudicial to Chinese interests? And can it be supposed for a moment that they would have insisted upon this fatal measure had pains been taken to show them that the regulations proposed were not only contrary to the treaty and unjust to foreigners, but also exceedingly injurious to their own revenue and their own people?

I cannot close, Mr. Editor, without calling attention to another very important reason for the dissatisfaction caused by these “revised regulations,” which is that by them (even if they be considered as only temporary) is lost the best of all possible opportunities for the general introduction of steam upon the Yangtsze-kiang. Had this great blessing been brought in during a period of profound tranquillity, while the great river was covered with native junks carrying on in security the commerce of this inner Chinese world, the improvement, great as it would have been, must have proved very far from an unmixed blessing. The native junk trade must have suffered for the general good of commerce, and the immediate evils arising from so great a change might have been too formidable to be suddenly met; but at this moment the insurrection has either altogether annihilated this native trade, or rendered the small remnant of it too expensive and dangerous to be worth preserving. Now, then, Mr. Editor, is the time of all times for introducing steam generally upon the river.

It may be said that steam will still be applied to all portions of the river, notwithstanding the regulations, inasmuch as nothing is easier than for the Chinese to buy steamers and navigate them under their own flag. But if this course should be pursued, what will become of the imperial revenue and of the foreign custom-house, and how much business would be done at the three ports?

Without entering into further particulars, Mr. Editor, your distant readers will now, I think, perceive that there were many cogent reasons for not adopting regulations at all similar to those recently promulgated; and they will, perhaps, be astonished when I add that this unwise measure has been taken in the face of strong protests from persons familiar with business, and to effect no good purpose that the public can divine, which might not have been more surely effected by regulations which would have been beneficial and not injurious to commerce.

I remain your obedient servant,

COMMERCE.

Shanghai, December 11, 1862.

[Untitled]

Consulate of the United States, Shanghai, China, November 25, 1862.

The undersigned is directed by Anson Burlingame, envoy extraordinary and minister plenipotentiary of the United States to China, to give notice that the following revised regulations opening custom-houses at Han-kow and Kiu-kiang, and under which trade is to be carried on, have been communicated to him by the Chinese government, and that they will come into operation on the first of January next, at which time they will supersede the provisional regulations of the fifth December, 1861.

By order:

GEO. FRED’K SEWARD, Consul.

revised regulations of trade on the yangtsze-kiang.

Article I. United States vessels are authorized to trade on the Yangtsze-kiang at three ports only, viz: Chin-kiang, Kiu-kiang, and Han-kow. Shipment or discharge of cargo at any other port on the river is prohibited, and violation of the prohibition renders ship and cargo liable to confiscation.

Native produce when exported from any of these three ports, or foreign imports not covered by exemption certificate, or native produce that has not paid coast trade duty, shall, when imported into any of these three ports, pay duty as at the treaty ports.

Art. II. United States merchant vessels trading on the river are to be divided into two classes, namely:

1st class: Sea-going vessels, that is, merchantmen trading for the voyage up the river above Chin-kiang, lorchas and sailing vessels generally.

2d class: Steamers running regularly between Shanghai and the river ports.

These two classes of vessels will be dealt with according to treaty, or the rules affecting the river ports to which they may be trading.

All vessels, to whichever of the two classes they may belong, if about to proceed up the river, must first report to the customs the arms or other munitions of war they may have on board, and the numbers and quantities of these will be entered by the customs on the vessel’s river pass. Permission to trade on the river will be withdrawn from any vessel detected carrying arms or munitions of war in excess of those reported to the customs, and any vessel detected trading in arms or munitions of war will be liable to confiscation.

Any vessel falling in with a revenue cruiser of the Chinese government will, if examination of them be required, produce her papers for inspection.

Art. III. Sea-going vessels, United States merchantmen, lorchas and sailing vessels generally, if trading at Chin-kiang, will pay their duties and tonnage dues at Chin-kiang.

If a vessel of this class is proceeding further than Chin-kiang, that is, either to Kiu-kiang or to Han-kow, her master must deposit her papers with the consul at Chin-kiang, and must hand in her manifest to be examined by the Chin-kiang customs; the superintendent of which, on receipt of an official application from the consul, will issue a certificate, to be called the Chin-kiang pass, to the vessel. The Chin-kiang pass will have entered upon it the number and quantities of arms, muskets, guns, swords, powder, &c., on board the vessel; also the number of her crew, her tonnage, and the flag she sails under.

The customs will be at liberty to seal her hatches and to put a customs employé on board her. On her arrival at Kiu-kiang, whether going up or coming down, her master must present her pass to the customs for inspection.

The duties on cargo landed or shipped at Kiu-kiang or Han-kow, must all be paid in the manner prescribed by the regulations of whichever of the two ports she may be trading at, and on her return to Chin-kiang she must surrender her Chin-kiang pass to the customs at Chin-kiang, and the customs having ascertained that her duties and dues have been all paid, and that every other condition is satisfied, the grand chop will be issued to the vessel, to enable her to obtain her papers and proceed to sea.

The customs will be at liberty to put an employé on board the vessel, to accompany her as far as Lang-shan.

Any United States vessel of this class found above Chin-kiang without a Chin-kiang pass will be confiscated. Any junk without Chinese papers will similarly be confiscated.

Art. IV. River steamers.—Any United States steamer trading regularly on the river will deposit her papers at the United States consulate at Shanghai, and the customs, on application of the United States consul, will issue a special river pass, (or steamer’s pass,) that shall be valid for the term of six months. Steamers trading on the river under this pass will be enabled to load and discharge, and will pay duties according to the rule affecting river steamers.

On arriving off Chin-kiang or Kiu-kiang the steamer, whether proceeding up the river or down, will exhibit her pass to the customs.

The tonnage dues leviable on any steamer holding a river pass shall be paid alternately at Chin-kiang, Kiu-kiang, and Han-kow.

The customs are at liberty to put a tide-waiter on board a steamer at any of these ports, to accompany her up or down the stream, as the case may be.

Infringement of river port regulations will be punished by the infliction of penalties in force at the ports open by treaty; for a second offence, the steamer’s river pass will also be cancelled, and she will be refused permission to trade thenceforward above Chin-kiang.

Any steamer not provided with a river pass, if her master propose proceeding above Chin-kiang, will come under the rules affecting sea-going vessels laid down in Art. III, and will be treated accordingly.

Art. V. River steamer’s cargoes:

1st. Where native produce is shipped at a river port on board a steamer provided with a river pass, the shipper must pay both export and coast trade duty before he ships it. If it be for export to a foreign port, this should be stated when the produce arrives at Shanghai; and if it be exported from Shanghai within the three months allowed, the shipper will obtain from the Shanghai customs a certificate of its re-exportation; on production of which at the river port of shipment, whether Chin-kiang, Kiu-kiang, or Han-kow, the customs of that port will issue a drawback for the amount of coast trade duty paid.

2d. Where import cargo is transhipped on board a river steamer at Shanghai, it must first be cleared of all duties. The transhipment will not be authorized until the customs are satisfied that the import duties have been paid.

Art. VI. Native craft owned or chartered by United States merchants will pay duty on their cargo at the rates leviable on such cargo under the treaty tariff. All such craft will further have to be secured by bond, in the manner laid down in the provisional rules published on the 5th December, 1861, and on entry into any port will pay port duties according to Chinese tariff. If the cargoes of native craft so employed do not agree with their cargo certificate, the amount specified in their bonds will be forfeited to the Chinese government. This provision is only valid until tranquillity is restored along the river.

Art. VII. United States vessels of all classes, as well as junks owned or chartered by United States merchants, must apply to the customs at the port of departure for a cargo certificate, (tsung-tau,) which, on the vessel’s or junk’s arrival at the port of destination, must be handed in to the customs before permission to discharge can be given.

The above regulations are provisional, and open to revision if necessary.