No. 203.
Mr. Denby to Mr. Bayard.

[Extract.]
No. 633.]

Sir: I had the honor, in my dispatch No. 593 of March 19, to report-that the lekin question in Formosa was in train of satisfactory settlement. Subsequently the Tsung-li Yamên repudiated the interpretation placed on their alleged agreement with the foreign ministers. The Yamên has finally determined to insist on the collection of lekin at a point between Taiwanfu and Anping.

This construction of the treaties can not be submitted to. Taiwanfu is the treaty port. It is about 3 miles from Anping. Anping is to all intents and purposes the port of the treaty port. Ships can not go to Taiwanfu. If lekin be collected on goods sent from Taiwanfu to Anping for shipment, Taiwanfu ceases to be a treaty port.

While it is conceded that the Chinese authorities have the right to collect lekin, it is insisted that they can not collect it at a treaty port, nor while goods are in transit from a treaty port to a neighboring port of shipment. Such construction would authorize lekin to be collected on goods in the hands of foreigners between Shanghai and Woosung, between Canton and Whampoa, between Tientsin and Taku, between Foochow and the Pagoda Anchorage, between the island of Kulangsu and the town of Amoy; in fact, between many cities and the actual place of shipment.

While it is agreed that, owing to the peculiar geographical situation of Taiwanfu, it will be inconvenient for the Chinese authorities to collect [Page 298] lekin elsewhere than at the lekin station, Si Lei, halfway between Taiwanfu and Anping, still it is claimed with confidence that foreign merchants have no concern with this inconvenience. It is the business of the local authorities to collect this internal tax the best they can, but they can not violate the treaties, which prohibit its collection at a treaty port. When goods once reach Taiwanfu and are bought by a foreign merchant the right to collect lekin ceases. If afterwards, while the goods are being transported to the actual place of shipment—only 3 miles away—lekin may be collected, evidently the treaty port is to this extent abolished.

Under these conditions it was unanimously agreed by the foreign ministers that communications of which copies are herewith inclosed should be sent as identic notes to the Yamên. The Yaniên is therein notified that instructions have been sent to the various consuls to protest against the levy of lekin at Taiwanfu or at any point between that place and Anping, and that reclamations will be made for any taxes illegally collected.

I shall report more in extenso on this question after my visit to Formosa.

I have, etc.,

Charles Denby.
[Inclosare 1 in No. 633.]

Foreign Ministers to Foreign Office.

Your Highness: At the meeting which took place on the 25th instant between the representatives of Germany, Great Britain, and the French Republic, on the one side and some of the ministers of the Tsung-li Yamên on the other, their excellencies the Chinese ministers contended that under the treaty of Nanking only the ports were opened and not the towns, and that therefore Chinese produce bought at the towns mentioned in that and other treaties was subject to the payment of inland dues on being brought to the port for shipment.

The terms used in Article II of the treaty of Nanking to designate the places opened for foreign trade are cities and towns, and no discrimination is made with regard to ports.

The Anglo-Chinese treaty of 1858 uses in Article XI the terms of cities and ports for New-chwang, Tang chow, Tainan Chao chow, and Kuing chow; the Franco-Chinese treaty of the same year uses in Article VI indeed only the term of ports, but even if there could be any doubt as to the signification of this expression it is in Article VII. explained by the use of the words ports et villes at which French merchants are given the right to trade; in Article VII of the Franco-Chinese treaty of 1860 the town and port (la ville et le port) of Tientsin are expressly mentioned as opened to French trade under the same conditions as all the other towns and ports mentioned in the treaties; the American-Chinese treaty of 1858 uses the term of ports and cities at which American citizens are allowed to trade; the German-Chinese treaty of 1861 uses the term of ports et villes at which German subjects can freely trade, and the same expression is used in the Belgian-Chinese treaty of 1865, Article XI. In the other treaties the expressions ports and towns are used alternatively, so that no doubt can exist that everywhere the expressions used are intended to designate the administrative unity usually called a town, and not a part of it, which might be called the harbor or port of the town.

In all the treaties above mentioned concluded since 1858 the foreign text is declared to be the one which in case of difference of opinion is to be held as the correct one.

The undersigned representatives of the German Empire, the United States, Japan, Great Britain, Spain, Russia, the French Republic, and Belgium, must therefore protest most strongly against any attempt on the part of the members of the Tsung-li Yamên or other high Chinese officials to reduce the right of foreign merchants to reside and trade at the towns open under treaty to the one of residing and trading in [Page 299] that port of the towns mentioned in the treaties which may have been set aside for shipping purposes.

No foreign settlements having existed at the time of the conclusion of the treaties, it is self-evident that they can not have been meant by the use of the terms towns or ports. The further attempt of the members of the Tsung-li Yamên, made at the conference above referred to, to deduce from section 3, Article I, of the Chefoo convention that, because in that arrangement it was proposed that only within the foreign concessions no lekin was to be levied on foreign imports, lekin might be levied on Chinese produce without the foreign concessions at the places open to foreign trade under the treaties, can hardly be looked upon as a serious one, as section 3 of the Chefoo convention has as yet been neither ratified by Her Britannic Majesty’s Government nor approved by any of the governments of the other treaty powers.

The undersigned avail, etc.,

  • M. von Brandt,
    German Minister.
  • Charles Denby,
    United States Minister.
  • Shioda Saruro,
    Japanese Minister.
  • John Walsham,
    British Minister.
  • Tiburcio Rodriguez y Munoz,
    Spanish Minister.
  • A. Coumany,
    Russian Minister.
  • G. Lemaire,
    French Minister.
  • Ch. Michel,
    Chargé d’Affaires, for Belgium.
[Inclosure 2 in No. 633.]

Foreign Ministers to Foreign Office.

The undersigned representatives of the German Empire, the United States, Japan, Great Britain, Spain, Russia, the French Republic, and Belgium, have the honor to inform His Highness Prince Ch’ing and their excellencies the ministers of the Tsung-li Yamên that their long and patient endeavors to obtain from the Tsung-li Yamên a prohibition of the illegal practice arbitrarily introduced by the provincial authorities of Formosa with regard to the levy of lekin, or other inland dues within the town of Taiwanfu opened to commerce by the treaty of 1858 and subsequent ones, or between Tainaufu and Anping, as well as with regard to the trade in camphor regulated by the joint arrangement of 1869, having proved fruitless, they have sent the following instructions to Taiwanfu to serve as guidance to their respective officials and merchants established there.

In view of the attempts made by the provincial authorities at Tainan Fu, to levy lekin or other inland dues on Chinese produce, the property of foreign merchants, and purchased by them within the town of Taiwanfu either within that place, or during the transport of the said produce from Taiwanfu, to the place of shipping at Anping, you are hereby instructed to protest again against, such arbitrary and illegal proceedings, and to inform the Chinese authorities that they will be held responsible for any loss or losses arising to foreign merchants from the interference of the Chinese authorities in the manner above stated. You will at the same time inform the foreign merchants that under the treaties they are not bound to pay lekin or transit duty on Chinese produce their property bought at Taiwanfu, either while at that place or during the transport from there to the place of shipping at Anping, and that any just claims for damages arising from the illegal and arbitrary interference of the Chinese authorities will be immediately presented to the Chinese Government.

“With regard to the re-establishment of the camphor monopoly in Formosa you will inform the Chinese authorities and foreign merchants that, the joint agreement of 1869 abolishing the camphor monopoly and regulating the manner in which the trade in camphor was to be carried on by foreigners being still in force, any interference with the legitimate trade of foreign merchants in this community would authorize claim for compensation, which will be immediately presented to the Chinese Government.

[Page 300]

“You will also inform the local authorities that should the interests of foreign merchants suffer, directly or indirectly, through the illegal interference by the Chinese authorities, the Chinese Government will be held responsible for such losses.”

  • M. von Brandt, German Minister.
  • Charles Denby, United States Minister.
  • Shioda Saburo, Japanese Minister.
  • John Walsham, British Minister.
  • Tiburcio Rodriquez y Munoz, Spanish Minister.
  • A. Coumany, Russian Minister.
  • G. Lemaire, French Minister.
  • Ch. Michel, Chargé d’Affaires for Belgium.