No. 175.
Mr. Angell to Mr. Blaine.

No. 204.]

Sir: In my No. 143 I explained why I thought the Chinese Government had a right to enforce a rule, long suspended, requiring junks chartered by foreigners on the Yang-tse River to pay port dues at the native customs.

However, in interviews with the ministers of the foreign office, I suggested the inquiry whether the strict enforcement of the rule might not, by diverting freights to the steamers, work some injury to the local customs and to the boat owners, and asked them to consider whether they could not devise some plan by which the frauds complained of could be prevented and still an opportunity could be afforded for the chartering of junks by foreigners.

Thereupon they consulted the northern and southern superintendents of trade, who have made a report. This report is embodied in a communication which I have received from Prince Kung. It appears that the enforcement of the rule is not complained of by merchants and is increasing the revenue. It is therefore decided to keep it in force.

As further information confirms me in the belief that the chartering of junks by foreigners was largely a dishonest business, intended to defraud the native customs, I am not disposed to complain of the action of the Chinese Government.

I have, &c.,

JAMES B. ANGELL.
[Inclosure in No. 204.]

Prince Kung to Mr. Angell.

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

In the month of May last I received a communication from your excellency concerning the enforcement of a rule requiring junks chartered by foreigners on the Yang-tse River to pay port dues at the native customs.

You said that this rule would work great hardship on the junk owners without increasing the revenue of the native customs. This office submitted the question to the consideration of the northern and southern superintendents of trade, directing them to report thereon. Their report has now been received in the following terms:

“By the regulations of the board of revenue, junks are required to pay dues at every [Page 297] customs station which they pass. Before China engaged in trade with foreigners, junk dues were levied in accordance with this rule. During these many years the Hankow customs modified the rule and levied junk dues once every four months; this was a temporary measure. Last year the Chinese customs were instructed to enforce the sixth article of the rules for trade on the Yang-tse River. Since the enforcement of the rule there have been no complaints on the part of the merchants, and a decided benefit is resulting to the revenue without working any injury to the junk trade. It is our duty to report a faithful representation of the facts.”

This office finds that the above measure is in accordance with one of the rules for trade on the Yang-tse River, and as the report says the revenue will be benefited without injury to trade, it is naturally our duty to instruct the customs stations to enforce the regulation.

As in duty bound, we send this reply to your excellency’s dispatch.