Mr. Denby to Mr. Blaine.

No. 1114.]

Sir: I have the honor to inclose herewith a copy of a note from the foreign office, received at this legation yesterday. As you will see, the discussion of the limitation of the duration of transit passes has been directly induced by the presentation of a transit pass issued 12 years since at Tien-Tsin, the pass proving good by the insistence of Her Britannic Majesty’s consul (Bullock) at that port. He claimed, correctly, [Page 185] that Tien-Tsin was not included among those ports where transit passes were issued with any fixed limit for expiration.

The native authorities are now urgent in their desires and measures to place a limit of time on such passes at this port, and such other ports not already included, with a view of preventing any recurrence of irregularities. I also inclose a copy of a note from His Excellency the German minister, which will explain an excellent suggestion to his colleagues and to the foreign office that these limitations be determined and arrived at by the Chinese authorities with the consuls, not confining such deliberations to the customs taotais and commissioners to the exclusion of the consuls.

I have, etc.,

Charles Denby.
[Inclosure No. 1 in No. 1114.—Translation.]

The Tsung-li-yamên to Mr. Denby.

No. 4.]

Your Excellency: With reference to the transit memoranda in triplicate issued for the exportation of native produce, the inspector-general of customs proposed, in the eleventh year of T’ung Chih (1873) a limit of time within which they should be delivered for cancellation. This limit was for the province in which the pass was issued, 50 days; for adjoining provinces, 100 days; for distant provinces, 200 days. To exceed the limit constituted a violation of the customs regulations, entailing confiscation of all the goods.

In the eleventh moon of that year (1873), and again in the eleventh moon of the second Kuang-hsü (January, 1877), this yamên communicated these proposals for the information of the representatives of the various countries resident at Peking, from whom, one after the other, replies were received agreeing that they should be adopted

At various subsequent dates, viz, in the eighth moon of the third Kuang-hsü (1877) first and second moons fifth Kuang hsü (1879), ninth moon seventh Kuang-hsü (1881), the yamên received dispatches from the southern superintendent of trade and the governor-general of the Liang-Kuang, stating that they were in receipt of reports from Ching-Kiang, Wuhu, Pakhoi Kiung-Chow, and Canton, stating that the customs taotais, together with the consuls, the commissioners of customs, and the inspector-general of customs, had decided upon limits which would govern transit passes for native goods. At Ching-Kiang and Wuhu the limit was put at half a year; at Pakhoi, 6 months; at Kiung-Chow, 3 months; and at Canton, for the province of Canton itself, 3 months, and for going beyond the province 6 months. Penalties for exceeding the allotted time were to be exacted in accordance with the regulations. This system of limits once in operation was found satisfactory to the mercantile community generally, and, though long in operation, no irregularities were discovered. We have now, however, received from the northern superintendent of trade a dispatch stating that on the twelfth day second intercalary moon of the sixteenth Kuang-hsü (April 1, 1890) a boatman, Chang Yu-te, having as cargo 116 packages of wool, arrived at the Hung Ch’iao (Red Bridge) subordinate customs station and tendered for examination a pass in triplicate, Tien-Tsin, No. 178, originally issued to the English firm of (Wilson & Co.) Hsin T’ai Hsing, authorizing the purchase of native goods at Tulu Hsien (a village southwest of Tien-Tsin). Investigation showed that it had been issued on the twelfth day of the fifth moon of the fourth Kuang-hsü (June, 1878); that it was 12 years old. Fraud having been suspected, the customs taotai submitted the man to an oral examination. While conducting the examination, however, he received a note from Consul Bullock requesting that the man be released. No limits for the expiration of these passes having ever been established at Tien-Tsin, the customs taotai yielded to the request and discharged the boatman. He wrote at once to the consul, however, urging that deliberations be entered into with a view to the establishment of definite limits for transit passes at Tien-Tsin in accordance with the procedure at other ports, which limits, once agreed upon, would prevent the recurrence of such irregularities hereafter.

The superintendent of trade, having received this report, requests that this case be definitely decided, and that the yamên communicate the matter to all the representatives of the foreign countries resident at Peking. We have replied to the superintendent of trade to transmit orders to the said customs taotai to come to some satisfactory arrangement of the present case with the consul, and we have also written [Page 186] to the northern and southern superintendents of trade to direct the inspector-general of customs to ascertain what ports have no established limits for duration of transit passes, and to order the customs taotais and the commissioners of customs at such places, taking into consideration the particular circumstances of each locality, to establish limits for duration of transit passes in accordance with regulations, making a distinction for time allowed in nearer and remoter places. Should a merchant have any real causes for delay, he may, before the expiration of the limited time, make application for an extension in accordance with the rules. This will be granted as a favor to him. We communicate this matter for Your Excellency’s information, and we hope you will order the consuls at the various ports concerned to act in accordance with the spirit of this dispatch.

Thus we hope frauds and irregularities will be avoided, and that mercantile affairs will more and more favorably progress with lapse of time.

Confident of Your Excellency’s cordial good will in the transaction of business with us, we are sure to receive as early as possible a reply from you.

A necessary communication, etc.

[Inclosure 2 in No. 1114.]

The German minister to his colleagues.

Mr. von Brandt has the honor to present his compliments to his colleagues and to place the following proposals before them:

In the yamên’s note of the 9th instant on the subject of the fixation of the duration of the export transit passes, the yamên states that the taotais or commissioners of customs at those ports where such measures had not yet been introduced would be instructed to fix a time they thought adequate.

In the same note it is, however, mentioned that at Ching-Kiang, Wuhu, Pakhoi, Kiung-Chow, and Canton similar measures had been introduced after an understanding had been arrived at between the Chinese authorities and the treaty powers. Would it not be well under the circumstances to tell the yamên that, while approving the principle of the measure proposed, the foreign representatives thought that if it were based, as in the former cases quoted by the yamên, upon a joint understanding between the Chinese authorities and the consuls, the interests of the customs, as well as of the mercantile community, would be best protected and future reclamations and difficulties avoided?

If his colleagues should approve of this proposal, each legation might draft its answer in the same sense.

Mr. von Brandt avails, etc.