No. 159.
Mr. Seward to Mr. Evarts.

No. 643.]

Sir: Recurring to my dispatch of the 16th instant, No. 623, in regard to a proposed tax on cargo boats (lighters), I have now the honor to hand to you a letter which has been addressed to the British minister, as doyen of, the diplomatic body, by the Tsung-li Yamên, in reference to the inquiries made by the Chinese secretary of his legation. You will see that the ministers, while upholding their right to tax cargo-boats, are willing to waive such taxation, and indicate that rules for the registration of such craft are needed in order to prevent smuggling, and will be framed and communicated to the foreign representatives.

I have, &c.,

GEORGE F. SEWABD.
[Inclosure in No. 643.]

tonnage dues on cargo-boats.

[Semi-official.]

The Ministers of the Tsung-li Yamên to the British Minister:

Referring to the British minister’s note of the 14th instant, regarding the imposition of tonnage dues on cargo-boats by the customs, and also to the conversation had with [Page 242] Mr. Brenan, the writers now beg to inform the British minister that they called upon the inspector-general of customs for a report on the subject. This report is to the effect that at the ports, there are, in addition to sea-going vessels, two kinds of craft; one being the boats used for the conveyance of passengers, letters, and baggage; and with reference to these, Article XXXI of the Tientsin treaty states that “no tonnage dues shall be payable on boats employed by British subjects in the conveyance of articles not subject to duty at any of the open ports “; and, in accordance with the stipulations of this article, no tonnage dues have been levied on boats of this description.

The other kind is the Craft used within the port in attendance on sea-going vessels for the purpose of transshipping cargo. With regard to these, Article XXXI of the British treaty states “that all cargo-boats conveying merchandise subject to duty shall pay tonnage dues once in four months, at the rate of one mace per registered ton.” These craft, them if the property of a national of a treaty power, are under the treaty liable to tonnage dues; and if they are the property of Chinese subjects or of the nationals of non-treaty powers, it is open to the Chinese Government to make special regulations applicable to them, or to direct the customs to treat them in the same way as other craft.

Regulations, moreover, which have been agreed upon between the superintendent of customs and the consuls at the several ports, are in existence, under which cargo-boats require to be numbered and registered at the custom-house, and to have their number painted on the hull.

It having come to the knowledge of the commissioner of customs at Foochow last year that the cargo-boats plying between Nantai and Pagoda Island were engaged in smuggling, the inspector-general again issued circular instructions to the commissioners at the several ports, but these instructions did not authorize them to frame new regulations on the subject; it merely directed them to publish anew the rules in force at the respective ports respecting the registration of cargo-boats. The fact is, so the inspector-general continues, that the tonnage dues on cargo-boats, although sanctioned by treaty, are of such slight importance to the revenue that they may as well not be enforced.

But the registration of cargo-boats is a measure which it is imperative on the customs to enforce, and this must now be insisted upon. When proper regulations on the subject have been proposed, their adoption can be discussed conjointly; meanwhile this acknowledgment is sent to the British minister’s note.