Mr. Williams to Mr. Seward

No. 13.]

Sir: Referring to my dispatch No. 3, of January 11, 1868, relating to the reduction of the duty on tea-dust, I have now the honor to send you an additional correspondence supplementary to that, (inclosures A, B.) It appears that a question was started as to what was properly included under the term tea-dust, and in order to obviate any further doubt the Chinese government has reduced the limit under which the half duty is to be levied, from that costing 15 taels per pecul to that costing 10 taels. However, as no tea-dust has been in market for many years whose cost has reached 10 taels, the change has no practical bearing. It is said it has been customary at some ports to admit tea-dust from Japan at an ad valorem duty of five per cent., but the import is trifling. At Tientsin 765½ peculs of tea-dust and tea stalks entered last year, valued at 3,033 taels, or four taels per pecul.

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

S. WELLS WILLIAMS.

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

[Page 515]

A.

Prince Kung to Mr. Williams

[Translation.]

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

On the 25th ultimo, Mr. Hart, the inspector general of customs, sent me the following report:

“On receiving the orders from the Foreign Office fixing the duty on tea-dust at 1t. 2m. 5c. per pecul on all that whose cost did not exceed 15 taels per pecul, while such as cost over 15 taels per pecul was still to pay the regular tariff duty of 2t. 5m., I immediately gave directions to carry the same into effect, as the chief object of the change was to benefit the native merchants in their trade between the various ports. But when the duty on the cheaper sorts of tea-dust was placed at 1t. 2m. 5c. per pecul, I heard that foreign merchants erroneously concluded that all kinds of tea leaf which cost less than 15 taels per pecul were likewise included in this new regulation. As this would, in my opinion, be a detriment to the revenue, I have to request that orders may be issued directing that the tariff on tea-dust shall be fixed at 1t. 2m. 5c. for all that whose cost does not exceed 10 taels per pecul, while all whose cost exceeds that amount, whether sent from port to port or exported to foreign countries, shall pay the former duty of 2t. 5m. per pecul,” &c.

An examination of this subject shows that tea leaf and tea-dust are quite different in many respects, and the object of making the new regulation was to reduce the duty in some proportion to the article, as was shown in the dispatch sent you on the 29th of last December. But if it is, as the inspector general of customs says in his report, that foreign merchants have mistakenly inferred from this that tea leaf itself (when under that cost per pecul) pays only 1t. 2m. 5c., they have truly confused the matter. The rule must accordingly be changed in order to mark the difference more plainly, and the limit placed on tea-dust exported must accordingly be restricted so that the revenue shall not be diminished.

Hereafter the duty on tea-dust exported from any port shall be levied in accordance with this recommendation of the inspector general of customs. For all that whose cost does not exceed 10 taels per hundred catties, the duty shall henceforth be 1t. 2m. 5c. for that quantity, whether it is to be sent abroad or carried to another open port; while for that whose cost exceeds 10 taels per pecul, the duty shall be as before, at the rate of 2t. 5m. per pecul. By this arrangement the duty on the article will be clearly distinguished, and no doubt, too, to the advantage of all interested. Orders to act in conformity to this arrangement have been sent to the inspector general of customs, and this communication is now likewise sent, that your excellency may give the necessary instructions to all the American merchants to act accordingly.

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

B.

Mr. Williams to Prince Kung

Sir: I have the honor to acknowledge your imperial highness’s dispatch of the 22d instant, in which you inform me that in consequence of mistakes having been made by the foreign merchants, who inferred that the new regulation fixing the duty on tea-dust at 1t. 2m. 5c. per pecul applies also to tea leaf whose cost did not exceed 15 taels per pecul, you had decided, in order to protect the revenue, to adopt the suggestion of the inspector general of customs, limiting the reduced duty of 1t. 2m. 5c. per pecul on tea-dust to all that, whenever exported, whose cost did not exceed 10 taels per pecul; while all above that price should pay the former duty of 2t. 5m. per pecul, &c.

The articles of tea leaf and tea-dust are no doubt very different, and as I now learn from your imperial highness’s dispatch that the foreign merchants have erroneously supposed that the cheaper kinds of the former were included under the new regulation, you have deemed it best, in order to prevent mistakes, to limit the reduced duty of 1t. 2m. 5c. to those kinds of tea-dust whose cost does not exceed 10 taels, which modification shall accordingly be made known to American merchants at the various ports.

I have the honor to be, sir, your imperial highness’s obedient servant,

S. WELLS WILLIAMS

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