[Translation.]

Prince Kung to Mr. Burlingame,

Prince Kung, chief secretary of state for foreign affairs, herewith makes a communication :

I find in the records of this office that in the month of February, last year, the inspector general of customs, Mr. Hart, brought forward several points of great inportance relating to the better regulation of trade at the ports, which would, if settled, be advantageous to all parties; and embodied them in four separate articles.

It is generally admitted that in the collection of duties the principle of promoting general advantage and removing whatever embarrasses trade, is to be followed even in comparatively small matters. The inspector general has now drawn up three regulations, all of them of much importance in carrying on customs affairs, and calculated to facilitate the collection of duties, while they will not interfere in the transaction of business, which I now submit for the consideration of your excellency, reserving for another despatch the regulations respecting pilotage. As soon as I receive your reply on these three regulations, I will cause orders to be sent to the superintendents of commerce for the northern and southern ports, directing them to carry the same into effect at all the custom-houses.

Hon. Anson Burlingame, United States Minister to China,

I. Passengers Luggage.

Shipmasters become liable to a fine if they allow any passenger’s luggage to leave the vessel before the arrival of a tidewaiter on board.

Luggage supposed to contain dutiable goods or articles of contraband, if not at once opened by the owner for examination on board, may be detained and taken to the custom-house; the owner can there reclaim it and be present when it is opened and examined.

If not claimed within three days the customs will proceed with the examination.

The presence of dutiable goods or contraband subjects the luggage to confiscation, and the owner to a fine.

II. Duty-free Goods.

Duty-free goods are not to be discharged until after the issue of the “permit to open hatches.” Any violation of this rule subjects the master of the ship to a fine, of which the amount is fixed by the treaty, and renders the goods liable to confiscation, whether landed or merely placed in cargo boats alongside.

Duty-free goods, whether imported or exported, are to be duly manifested; they are not to be shipped or discharged without the proper permits, (as in the case of dutiable goods,) and they must in every instance be taken to the customs jetty for examination.

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III. Steam Tugs.

The registers of steamers plying as tugs should be deposited with the consul; on the receipt of a consular report, certifying that the steamer is to ply as a tug and is not to engage in any carrying trade, the customs will register the steamer as such, upon and after which, without report to or clearance from the customs, the steamer may come and go, and move about at pleasure in the harbor and waters adjacent.

If about to proceed to any other treaty port, such steam-tugs must clear from and report to the customs in the ordinary way; and failing to do so will be liable to a fine of 500 taels.

Tonnage dues shall be payable by steam-tugs once in four months.

If discovered to be concerned in any smuggling transaction, or in the unauthorized transport of cargo the goods will be confiscated, and the steamer will no longer be regarded as a tug, but will have to report at and clear from the customs on each future occasion of arrival in or departure from the harbor.