Mr. Williams to Mr. Seward

No. 3.]

Sir: The inclosed dispatch from his Imperial Highness Prince Kung, respecting a modification made in the duty on tea-dust, (inclosures A, B,) which I have now the honer to send you, indicates a desire to remove some of the disabilities on trade in this country. Tea-dust is almost wholly consumed by the poorer natives of China, who often mix it with the dried leaves of other plants, and it is carried from the tea districts for their use in other provinces. The foreign trade in it is trifling, but this reduction in the duty will probably develop a larger internal trade in the article.

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

S. WELLS WILLIAMS.

Hon. William H. Seward, Secretary of State, Washington, D. C.

A.

Prince Kung to Mr. Williams

[Translation.]

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

In the month of August, last year, Mr. Fitzroy, the acting inspector general of customs, made a representation to the Foreign Office concerning the article of tea-dust, showing that it is so much inferior to the genuine article that when the same duty is levied on them both an exorbitant charge is made on the dust; he therefore requested that a modification might be made in respect to the rate of duty to be charged on the two qualities.

It so happened that in June last the firm of Messrs. Dent & Co. exported 591 peculs of tea from Hankow under the false designation of tea-dust, on which they paid only half the regular duty. When it reached Tientsin the customs ascertained that the goods did not agree with the description, and therefore they were compelled to disallow the reduction, lest there should great confusion and disorders arise. Instructions were therefore sent to the superintendent of commerce for the northern ports to levy the full duty according to the tariff, which was done.

In January last, Mr. Hart, the inspector general, reported that as Messrs. Dent & Co. had misrepresented this lot of produce to be tea-dust, as had been proved by the commissioner of customs at Tientsin, they should be required to pay the full duty on it; but the article of tea-dust being in reality inferior in every respect to good tea, if the same duty continued to be levied on it as on fine tea, it would be impossible to avoid some inequality and unfairness. The best way, therefore, would be to diminish the duty on it in proportion to its value.

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The Foreign Office having ascertained that Messrs. Dent & Co. had been required to pay up their deficiency of duty, considered that it was needless to do anything more about this particular case.

In regard to the question whether it was desirable to reduce the duty on tea-dust, however, it was concluded, first, to send directions to the two superintendents of commerce to consult upon the question and await the result of their inquiries. An answer was received from the northern superintendent of commerce, Tsunghau, last spring, stating as his opinion that one-half the present duty levied on tea was sufficient for tea-dust; but as he had not yet received a reply from his colleague, it was necessary still to delay the decision.

At last, on the 27th ultimo, the dispatch of the southern superintendent of commerce was received from Shanghai, inclosing the following report from the intendant of circuit Hankow:

“The article of tea-dust comes almost entirely from the great mart of Siangtan, in the province of Honan, and consists of the refuse leaves of black tea left after sifting and sorting; there are coarse and hard sticks in it, [meaning the stems of the leaves,] but the most of it is an ashy-like dust, differing altogether from good leaf-tea, and much inferior.”

Whether, therefore, this article should pay one half the duty levied on good tea, viz, one tael two mace and five candareens [i. e., $1 74] for every pecul, [of 1331/3 pounds avoirdupois,] or continue to be charged the old rate of two taels five mace, [i. e., $3 48,] is a point that can be decided after a full examination of the facts now produced.

From what this office can learn on the matter, it appears that this article of tea-dust is a product of Siangtan in Honan; both the superintendents of commerce clearly represent it to be much inferior in size of leaf to good tea, and assume that it is not altogether equitable to demand the full duty of two taels five mace per pecul, as it interferes with the interests of the merchants. In order therefore to accord with the request now made, it has been decided to equalize the duty on this article. Hereafter the tariff on the article of tea-dust will be: one tael two mace five candareens [1t. 2m. 5c, or $1 74] for every hundred catties, [or 1331/3 pounds avoirdupois,] when the price does not exceed 15 taels per pecul; for every pecul that costs above 15 taels, the old duty of two taels five mace [2 t. 5 m., or $3 48] per pecul will be levied. In this way a distinct line can be drawn between them, and the same will be entered in the tariff for constant observance in future.

At the same time that this modification of the duty on tea is made known to your excellency, I have also notified the northern and southern superintendents of commerce to inform all the collectors of customs at the several ports, and directed the inspector-general of customs too, to observe the same in collecting the duty on this commodity. It is necessary, however, to guard against all attempts to simulate the two kinds of tea included in this arrangement; and as article X of the commercial regulations permits the Chinese government to adopt what means appear to it best suited to protect its revenue from suffering loss, orders have also been transmitted to the collectors and foreign commissioners at the various ports to co-operate in the strict enforcement of the rules respecting this article of trade. Every merchant having tea-dust to export must bring it to the government jetty for examination, and when the duty on it is paid he can place on board ship. When it is imported, he must in like manner, before landing it, bring it to the government jetty to be examined, and pay the duty. If a foreign merchant falsely reports a lot of real tea Under the designation of tea-dust—whether it be for export or import, no matter where it is actually lying—as soon as it is detected the whole quantity shall be confiscated by the customs to the Chinese government. By this rule no one can fairly complain of any injustice, and it will moreover put a stop to all deception and evasion of the law.

I have in the present communication thus informed your excellency of the reasons for reducing the duty on tea-dust, and the regulation adopted for strictly carrying out its observance, and have now to request that you will make the same known to the merchants of the United States at the several ports.

His Excellency S. Wells Williams, United States Charge d’affaires ad interim.

B.

Mr. Williams to Prince Kung

Sir: I have the honor to acknowledge the receipt of your Imperial Highness’s dispatch of the 29th ultimo, in which you inform me respecting a modification which has been made in the article of tea, whereby the tea-dust is separated from the other, and is hence-forth [Page 502] to pay a duty of one tael two mace five candareens per pecul [i. e., $1 74 per 1331/3 pounds avordupois] on all such as does not exceed 15 taels per pecul in value; but to pay the same duty as tea whenever its value exceeds 15 tack per pecul; and that if a foreign merchant falsely reports tea under the designation of tea-dust, he renders the whole quantity liable to confiscation.

I have carefully read your Highness’s observations on the principles which led you to modify the duty by discriminating the article of tea-dust at a lower rate than tea, in order to benefit the foreign merchant; and that, to restrain the misuse of the reduction, all tea which is palmed off by him as tea-dust is thereby rendered liable to confiscation. This arrangement appears to be equitable, and indicates a desire to deal with this commodity so as to remove all obstacles to its greatest use.

I have accordingly notified the various consuls of the United States at the ports of this modification, for the information of the American merchants.

I have the honor to be, sir, your Imperial Highness’s obedient servant,

S. WELLS WILLIAMS.

His Imperial Highness Prince Kung, &c., &c., &c.