Nothing, however, was done touching this subject. The 19th day of November
last I again addressed the Yamênon the subject. I inclose herewith a copy of
my communication, together with a copy of the reply thereto.
The Yamênsets out at great length a report on this subject from the northern
and southern superintendents of trade, wherein they make a forcible argument
against the doing away with the existing regulations respecting bonds. The
Yamênconcludes that as long as foreign merchants charter native junks in
trade on the Yangtze they must give bonds. If foreign merchants should cease
to employ native junks then the system may be abolished.
There has been a great deal of illicit traffic in munitions of war on the
Yangtze during the past year. Under the bond system such importations can in
a measure be checked and bad characters can be found out and bona fide
merchants protected.
I shall, for the present, let the question rest where it is.
[Inclosure 2 in No.
1609.—Translation.]
The Tsung-li-Yamên to Mr.
Denby.
The prince and ministers had the honor, on the 19th instant, to receive a
note from the minister of the United States relating to the case of
Messrs. Burnett & Co., which involved the construction of the
Yangtze regulations, etc. The minister cited the Yamên’s remarks “as to
modifying the present regulations regarding bonds when the Yamênhad
adopted a satisfactory modus operandi the prince and ministers would
then inform the minister of the United States. Pending this, however,
the present regulations are to remain in force.”
As more than one year had elapsed and no steps had been taken to do away
with the existing regulations, the minister of the United States
requested that the matter be taken up and the regulations be rescinded,
etc.
With regard to the case of Messrs. Burnett & Co., it had been
frequently discussed, and the Yamên, considering the very small amount
of money involved, addressed the governor-general of the Hu-Kuang
provinces to be yielding, considerate, and reasonable in taking action
in the premises, and this fact was communicated to the minister of the
United States in September last.
As to whether the system of bonds should be done away with or not, the
Yamên at the time addressed the ministers superintendent of northern and
southern trade to instruct all the superintendents of customs and
customs Taotais to consider the matter and report thereon. The ministers
superintendent of trade have presented their reports to the Yamên
embodying the views submitted at different times of the various customs
Taotais, which are to the following effect:
The issuance of bonds to foreign merchants who charter native vessels is
not only for the purpose of a security against discrepancies in the
cargo manifest, but, further, as a security that the cargo and vessel
will reach the port cleared for.
These documents or bonds must be returned to the commissioner at port of
departure within two months from the date of issue. They apply to native
junks, and not to steamers, as may be known.
Still further, the shipment or illicit discharge of cargo en route, or
the conveyance of cargo to other than the place of destination, without
these bonds there would be no way of ascertaining whether this was done
or not. These irregularities are committed by the merchants, and it
would not be convenient that the captain alone should be responsible,
hence it is necessary that a guarantee, or bond, should first be given,
and any violation of the regulations will subject the offender to a
forfeit of a sum to the value of vessel and goods shipped. These
regulations have been in force for a number of years and have not been
detrimental in any way to the interests of foreign merchants of bona
fide and good standing. They are in keeping with the intent and purpose
of the fourteenth article of the treaty between the United States and
China, signed at Tien-tsin, which, in substance, reads: “* * * And any
vessel (under the American flag) violating this provision (and carrying
on a clandestine and fraudulent trade) shall, with her cargo, be subject
to confiscation to the Chinese Government, and any citizen who shall
trade in any contraband article of merchandise shall be subject to be
dealt with by the Chinese Government without being entitled to any
countenance or protection from that of the United States.”
A fine interpretation of the regulations, that this provision is only
valid until tranquillity has been restored along the river, would seem
to mean the stopping of foreign merchants chartering Chinese junks. If
foreign merchants still continue to charter Chinese junks, then the
system of bonds can not be done away with. If the bond system is to be
abolished, then foreign merchants must be instructed that they can not
employ native junks for the purpose of trade in the inner waters of
China. This would be fully in harmony with existing regulations, but it
is to be feared foreign merchants would not be pleased with the
change.
[Page 227]
Again, there are numbers of outlaws on the Yangtze at present engaged in
the illicit traffic of conveying munitions of war and there is evidence
beyond doubt that native junks are employed for the purpose, and it is
right that extra precautions be taken to strenuously guard against this
traffic at the places and ports along the river. A stipulation should,
furthermore, be inserted in the bonds covering this point. How could the
bonds, therefore, be done away with?
Cargo that is shipped from Hankow to Chin-kiang, for instance, when
payment of duty has been made at Hankow, the commissioner of customs at
Hankow sends, under sealed cover, to the commissioner of customs at
Chinkiang a certificate of the cargo, which is opened by the latter
officer, who is then able to ascertain on examination whether the cargo
agrees with the amount specified on the certificate, and when the
vessel’s dues have been paid the bond can be canceled.
The certificates are not examined when the vessel passes the native
inland customs barriers, but the bond specifying the cargo is examined,
and if these documents are to be done away with the native inland
barrier officials would have no means of holding an examination.
Then, again, captains of native vessels may secretly carry goods with
baggage, merchants may make false representations by getting a certain
article shipped when specifying another, and from Hankow to Chin-kiang
by water is a journey of over 1,000 li or Chinese miles, with any number
of branch streamlets running into the Yangtze, where junks may stop or
discharge cargo, and such practices would prove detrimental to the
revenue.
As to foreign merchants chartering native junks for the conveyance of
cargo, they are exempted from paying likin at the barriers under
existing regulations, which shows that they are treated with every
kindness. It is right, therefore, that they should continue to give
bonds, which is in harmony with the purpose and intent of the
forty-sixth article of the Tien-tsin treaty.
The Yamên is requested not to make any order doing away with bonds.
The Yamên would observe that as foreigners will or must charter native
junks, in trade on the Yangtze, they must give bonds. If foreign
merchants will stop employing native craft then the system of bonds can
be done away with. These two conditions in effect are connected together
and the principle is easily understood. Since the system of bonds was
put in force, it has worked in no way detrimental to trade. The past
year has witnessed more and more illicit traffic in munitions of war on
the Yangtze River and the Yamên had in mind the discussion of the
question with the diplomatic body with a view to making the rule of
action more prohibitive against this practice.
Under this system of bonds the authorities are enabled to find out bad
characters as well as give due protection to merchants of bona fide and
good standing.
The system can not but prove advantageous. Further, China can of herself
exercise such authority as she deems necessary to guard against abuses.
This is in accordance with treaty.
Having received the report of the ministers superintendent of southern
trade and of northern trade, embodying the views submitted by the
various customs Taotais, the Yamên do not find it convenient to make any
change in the regulations.
As in duty bound the prince and ministers send this communication in
reply for the information of the minister of the United States.
A necessary communication addressed to his excellency, Col. Charles
Denby,
