The governor-general of Canton enters into a lengthy argument in excuse of
the tax complained of by me, of which a copy was sent to you in my dispatch
No. 322, of date the 25th of February last. He sets out that the first lekin
tax of 2 mace 8 caudarecns and 8 cash was levied because of representations
that all other goods paid three taxes and kerosene only one. The tax of 80
cents a case, now complained of, he says was levied because the people had
been subjected to new taxes on account of the increasing number of
robberies. He claims that the tax does not interefere with the sale of
kerosene, which is still sold for good profits.
The duty, he says, is not collected from foreign merchants. Therefore the
foreigners can not be injured. Kerosene is still cheaper than
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the native oil. The sale of
kerosene has increased, but; it has not diminished.
The argument drawn from the danger of fire is then gone over by the yamên.
Should kerosene still prove the cause of fires, direct action can be taken
by the United States and China.
It will be seen that the main question of the power of China to discriminate
against foreign goods after their distribution is not argued.
It is true, I suppose, that sales of kerosene have not diminished, a fact
which proves that the new tax is not prohibitory.
It is likely that the correspondence already had will prevent any further
increase of taxation.
[Inclosure in No.
385.—Translation.]
The Tsung-li yamên to Mr.
Denby
Your Excellency: Upon the 25th February last
the prince and ministers had the honor to receive a dispatch from your
excellency in regard to the increased leyy of lekin on kerosene oil at
Canton, which you regarded as a plain intention to prohibit the
introduction of this article. You requested the yamên to instruct the
lekin authorities at Canton not to impose any further taxation of this
kind on kerosene, etc.
At the time the yamên transmitted a copy of your excellency’s
communication to the governor-general at Canton for his perusal and
action in the premises, and also sent your excellency a dispatch in
acknowledgment, all of which is a matter of record.
The prince and ministers have now received a report from the
governor-general at Canton, as follows: The commissioners of the Canton
lekin office report that with regard to kerosene oil, in the eighth year
of Kuang Hsii, Chang Chao Ying, a native merchant, petitioned that all
kinds of foreign merchandise shipped into the interior by Chinese
merchants had to pay three lekin imposts, namely, one on shipment of
goods, one on examination of goods, and one on arrival of goods at
destination; that kerosene oil is the only article exempt from the
payment of these lekin duties, and that this exemption was decidedly not
fair and equitable. It was therefore decided that lekin in the sum of 2
mace 8 candareens and 8 cash should be imposed on each case of kerosene
oil. This tax has accordingly been collected for some years.
Last year, in the fifth moon, owing to the increasing number of robberies
at Canton, a memorial was presented to the Throne, and the Imperial
sanction granted, authorizing the raising of money to defray the
expenses of patrolling police. The people contributed towards this
object for the people’s use, and it is a matter of no concern to lekin.
Each article of merchandise is taxed in proportion to the business done.
At the time the literati and merchants represented that they had
deliberated together; that kerosene oil was in good demand, there being
a large sale of it at extremely good profits, and that it only paid one
lekin tax. They requested that an additional sum of 6 mace per case be
imposed for the period of a half year. There was no opposition to this
on the part of the people. Besides the collection of an additional sum
on kerosene toward the patrolling police fund is an extra levy from
Chinese merchants; it is not an additional duty collected from foreign
merchants. When goods once pass into the hands of Chinese they are
Chinese goods, and it matters not whether lekin is paid or a
subscription is collected on them, the money comes (all the same) from
the Chinese merchants, and is not a collection asked from foreign
merchants. Hence there can not be any loss or injury to them [the
foreigners]. Further, it appears that each case of kerosene oil pays an
extra sum of 6 mace. This is equal to only 1 candareen 2 cash per catty.
It is retailed to the people at the rate of 4 candareens 5 cash per
catty. Peanut oil from the interior costs 6 candareens per catty; hence
the price of kerosene oil is still much cheaper than the nut oil from
the interior. Since this additional impost was put on kerosene the sale
of the oil, although it has not shown very much increase, still there
has been no diminution in sales noticeable; and from this it may be
perceived that the trade has not suffered.
As to the statement made that the treaty can not be abrogated by indirect
action, in the proclamation issued last year it was stated that the
article kerosene is very explosive in its character, etc., and will
result in a calamity with unlimited evils.
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Now, with regard to kerosene, it is an article which causes fires. Of
late years in Canton there have been a great many calamities by fire,
mostly caused by kerosene oil. These are the real and true
circumstances. Besides, there, is a prohibition [against kerosene] in
all foreign countries. For instance, take the steamers of Messrs.
Butter-field and Levin plying between Hong-Kong and Macao. The carrying
of kerosene is prohibited by them. This shows a prohibitory intention or
purpose.
China has again and again enjoined upon her people, by the issuance of
proclamations, that permission is still granted to import [kerosene] for
lighting purposes, so that they may think of its calamitous nature and
take necessary precautions in its use, but she has not been willing to
restrain or press the matter too urgently.
The Governments of the United States and China mutually agree to give the
most careful attention to the representations of either as to commercial
intercourse.*
In future, if from circumstances calamities occur by fire—which it is
difficult to prevent—to the detriment of the people, as a matter of
course the question can be considered by both [the United States and
China] and action taken in the premises. There will be no necessity, in
a business not to be mentioned, to take indirect prohibitory action.
The yamên having received the above report from the governor-general at
Canton, would state the representations made (and based upon) the real
circumstances of the case, and, as in duty bound, the prince and
ministers send this reply for the information of your excellency.
A necessary communication addressed by the Tsung-li yamên to his
excellency Charles Denby, United States minister, Peking.
