Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 3, 1888, Part I
No. 189.
Mr. Bayard
to Mr. Denby.
Washington, March 22, 1888.
Sir: I inclose for your information a copy of a dispatch from the United States consul at Canton, No. 141, of January 17, 1888, covering a memorial addressed to the Imperial Government of China by the viceroy of the Two Kwangs and the governor of Kwang Tung, calling attention to the injury to Chinese life caused by the kerosene oil imported by foreign merchants and requesting the issue of Imperial commands forbidding its importation, I add, also, a copy of a letter from Mr. J. H. Flagg, [Page 276] dated the 20th instant, in which, as the representative of large petroleum interests in this country, he refutes the statements of the memorial and asks that no action be taken by this Government looking to the injury of that American commodity in China.
I am, etc.,
Mr. Seymour to Mr. Elves.
January 17, 1888.
Sir: I have the honor to transmit a copy of a translation of a joint memorial* from his excellency the viceroy of the Two Kuangs and his excellency the governor of the province of Kuang-Tung to the Imperial Government of China to prohibit or limit the importation of American kerosene, because of its hazardous nature and the disasters it has caused to lives and property of Chinamen. The document, which is worthy of attention, has hot obtained publicity; but it has reached the consuls in what is deemed a reliable form, and, was carefully translated by an advanced Chinese scholar in the British consulate (Mr. Hosie), and is regarded as genuine as it is mischievous and dangerous; for the viceroy is relentless and unceasing in his warfare against foreign interests.
The British consul at Canton has sent a copy of the memorial to the British legation at Peking, and I have sent copies to Minister Denby at Peking and to Consul-General Kennedy at Shanghai.
I am, sir, your obedient servant,
United States Consul.
Mr. Flagg to Mr. Bayard.
Sir: Through the courtesy of Mr. Lee, chief clerk of the Department, I have been furnished with a copy of the translation of the joint anti-kerosene memorial of the viceroy of the Two Kuangs and the governor of Kuang-Tung to the Imperial Government of China dated December or January last, wherein the memorialists set forth that certain disastrous conflagrations have lately taken place in the Canton province, which they ascribe to the use of American kerosene oil, and praying that the Imperial Government may negotiate a treaty with the United States looking to the exclusion of refined petroleum from the Empire, or subjected to such restrictive regulations as will essentially exclude it from the Empire.
Mr. W. H. Libby, the representative of the American Export Association and of the Standard Oil Company, has recently returned from China. A conference with him on the subject convinces me that this memorial was inspired by the local guilds who desire to suppress American kerosene in order to restore their former trade in the native ground-nut oil, and that the recent conflagrations complained of are made the pretext to justify this movement.
The memorial, however, does not successfully conceal the fact, and indeed openly states, that “kerosene oil comes for the most part from America and is largely consumed, owing to its cheapness;” and at the conclusion of the memorial it is further stated “that if kerosene could be suppressed native trade would be greatly benefited.”
The memorial, however, emanates from a respectable, if not potent, source, and I feel justified, in behalf of the petroleum interests which I represent, in submitting a few brief considerations to show the absurdity of the claim it puts forth, even from a Chinese stand-point, and which I am sure you will very carefully consider before entering upon any treaty negotiations or submitting to any local regulations looking to a restriction of the petroleum exports to China from the United States.
These may be briefly summarized as follows:
(1) That such prohibition or restriction of petroleum would be in conflict with the purposes and objects of our commercial treaty with the Empire.
[Page 277](2) That the balance of trade with China at the present time is largely against the United States, and petroleum being the foremost article of our exports to that country, its exclusion or essential restriction on the part of China would increase the existing difference in the exchanges of the two countries.
(3) That China is the only country which by hostile legislation and the imposition of almost prohibitive “lekin” taxes of a local character is now obstructing commerce in petroleum and that these measures to restrict its general use seem plainly in conflict with the spirit and intent of our treaties, and have already led to a marked diminution of our trade and established a commercial grievance on our side.
(4) That experience has indicated to us that any attempted curtailment of petroleum importation is not in accordance with the wishes or welfare of the Chinese people at large, but would be in the interest only of a few powerful commercial guilds.
(5) That China is using far less petroleum relatively than any country of importance, and that with the population estimated at one-fourth that of the world, its consumption of petroleum is only about one sixty-second. This fact, in connection with the statistics which follow, utterly refutes the complaint of the viceroys that the trade is assuming undue and alarmingly large proportions.
The following table shows the approximate petroleum consumption of 1887:
| Country. | Population.* | Number of cases. | Per capita, 1 case to each— |
| United States | 60,000,000 | 30,000,000 | 2 |
| Java | 20,000,000 | 2,000,000 | 10 |
| Japan | 37,000,000 | 2,800,000 | 13 |
| India | 240,000,000 | 4,000,000 | 60 |
| China | 360,000,000 | 1,600,000 | 225 |
| Entire world | 1,500,000,000 | 100,000,000 | 15 |
* Statistics for 1880.
(6) The absence of any similar protest from any other quarter of the globe refutes the rash assertions contained in the memorial, China receiving and consuming the same quality of oil that is shipped indiscriminately to other countries throughout the world.
Years ago it became apparent to those largely interested in the development of the petroleum industry in the United States that the value of the costly plants and machinery necessary for the business must absolutely depend upon the ability to offer a product to the world which should be practically safe as an illuminant, and without attaining this degree of safety such investments must be almost without value. The great majority of human beings the world over from instincts of self preservation exercise reasonable care in the use of matches, gas, steam, petroleum, and kindred products utilized for heat or light, yet there are exceptional instances of gross carelessness and those of idiocy or crime which no precautions can avoid.
Modern conflagrations have demonstrated that even iron and granite can be consumed, and if petroleum would not burn the very object of its production would be defeated. The experience of the world, however, demonstrates that the refined petroleum of to-day, handled with ordinary care, is not a dangerous commodity. The manufacturer who refines it, the inspector who daily bends over it, the underwriter who insures it, the ship’s master and crew who transport it, the merchant who handles it, the multitude in every clime who consume it, have long ceased to regard it with special apprehension. It is hourly being distributed in every land, and is floating on every sea. It has supplied one of the great wants of the world, and especially in the Orient where it has annihilated previous darkness and replaced very inferior and far more expensive products. It has especially proved a boon to the masses of the poor, for it has placed within the reach of the scantiest purse one of the primal necessities of life. It has rendered possible among those poor classes a host of evening industrial occupations unknown before, while evening schools and other educational advantages have been established for the first time in the history of Oriental civilization.
From the stand-point of the Chinese people alone, no considerable restriction can be laid upon the consumption of refined petroleum in China without serious detriment to the masses of her people. This fact being so self-evident suspicion is confirmed that the complaint is inspired solely by the local guilds who desire to resuscitate the old traffic in the native ground-nut oils by the exclusion of the cheaper and better American commodity.
Respectfully, yours,