Mr. Denby to Mr. Gresham.

No. 1754.]

Sir: I have the honor to inform you that I received, in August last, a dispatch from the consul at Hankow, presenting the case of Mr. Jenkins, an American merchant.

Mr. Jenkins had taken out at Hankow transit passes covering certain goods, to wit, kerosene, seaweed, cassia twigs, cassia lignea, cardamoms, and camphor, which he shipped into the interior. The kerosene constituted the bulk of the shipment.

[Page 238]

At a place called Yoh-chow, on the “Yangtze, these goods were required to pay likin dues.

The 10th day of August last I addressed to the Tsungli Yamên a communication on this matter, of which a copy is inclosed. The Yamên replied, August 18, that the matter would be investigated.

The 24th ultimo I again addressed a communication on the subject to the Yamên, a copy whereof is inclosed.

The 29th ultimo the Yamên sent to me the communication of which a copy is inclosed.

The first day of the present month I addressed to the Yamên a communication, of which a copy is inclosed.

The Yamên admits that the collection of likin on kerosene was illegal, and these dues are ordered to be refunded. They claim, however, that some sort of discretion inheres in the likin officials by which they have the right to determine whether goods covered by a transit jiass are in reality imported goods or goods of native production and subject to pay likin dues. From my reply to the Yamên above mentioned it will be seen that I insist that the transit pass certificate issued by the collector must be held to be conclusive. As likin stations are found along all the channels of trade at close intervals, trade and commerce would be greatly impeded if transit passes could be disregarded by native officials.

I have, etc.,

Charles Denby.
[Inclosure 1 in No. 1754.]

Mr. Denby to the Tsung-li-Yamên.

Your Highness and Your Excellencies: I have the honor to bring to the notice of your highness and your excellencies a representation, made to me by the United States consul at Hankow, in regard to the exaction of likin on goods of Mr. M. A. Jenkins, covered by transit passes, at Yoh chow, in Hunan. I inclose copies of the correspondence between the United States consul and the Taotai—three in all—also a list of the goods covered by the transit passes. I have in my possession thirty-three transit passes which can be shown to your highness and your excellencies if desired.

The transaction is a simple one. The likin authorities compelled Mr. Jenkins to pay likin amounting to 101,096 cash on goods covered by transit passes. The goods were foreign goods and were inspected by the customs at Hankow when the passes were issued.

It was not competent for the likin authorities to disregard the transit passes and to collect likin. I have, therefore, to request that your highness and your excellencies will order that there be refunded to Mr. Jenkins the money thus extorted from him, and that you will also order the likin authorities to cease collecting likin on goods covered by transit passes.

I have, etc.,

Charles Denby.
[Inclosure 2 in No. 1754.]

Mr. Denby to the Tsung-li-Yamên.

Your Highness and Your Excellencies: Upon the 10th of August last I had the honor to address your highness and your excellencies in the matter of the exaction of likin by the likin authorities at Yoh-chow, in Hunan, on goods of Mr. M. A. Jenkins, an American merchant, which were duly covered by transit passes in accordance with the stipulations of treaty.

[Page 239]

Your highness and your excellencies replied on the 18th idem, stating that you had addressed the governor of Hunan, setting forth the representations made in my communication, and on receiving an answer your highness and your excellencies would address me, informing me of same.

More than two months have elapsed without hearing from your highness and your excellencies on the subject, and as the case is one which, under treaty, involves the right of foreigners to send goods into the interior under transit passes, without being subject to the levy of likin, I shall feel obliged by your highness and your excellencies informing me what action has been taken in the premises.

The fact of the goods having been duly covered by transit passes is evidence sufficient to prove that the exaction made by the Yoh-chow officials was illegal and a violation of treaty stipulatious.

I have, etc.,

Charles Denby.
[Inclosure 3 in No. 1754.—Translation.]

The Tsung-li-Yamên to Mr. Denby.

In the matter of the levy of likin by the likin authorities of Yoh-chow, in Hunan, on goods of Mr. M. A. Jenkins, in August last, the prince and ministers had the honor to receive a communication from the minister of the United States in regard thereto, wherein he transmitted copies of the correspondence between the United States consul at Hankow and the Taotai, also a list of the goods covered by the transit passes, and requested that an order be issued to have refunded to Mr. Jenkins the money thus extorted from him, and that the likin authorities be ordered to cease collecting likin on goods covered by transit passes.

At the time the Yamên addressed the governor of Hunan on the subject and also acknowledged the communication of the minister of the United States, which is a matter of record.

The Yamên has now received a reply from the governor of Hunan, as follows:

“In regard to the kerosene which was covered by transit passes, it may be observed that of recent years there has been a good deal of native oil manufactured which resembles in appearance the foreign article, and when it was first manufactured orders were issued that it should pay likin and thus guard against malpractices.

“Foreign oil is an article specified in the tariff, but it is difficult to distinguish between it and the native oil. Instructions were issued, however, that on the foreign article no likin should be levied, and the practice has ceased for several months.

“But, as to seaweed, it is a native product gathered at island places along the coast and ranks among the principal articles of commerce that are conveyed into Hunan, and, as there have been a good deal of smuggling and malpractice committed, it was proper that it should be regarded as a native product and pay likin in accordance with established regulations.

“In cases, however, where, on investigation, it is found that there is proof positive of the goods having been shipped from Hongkong, then action will be taken differently.

“Instructions have been issued to the likin authorities to address the Hankow Taotai to make this known to the mercantile classes, and to request them to act in due observance of the rules laid down.

“Further, instructions have been issued for the merchant (Mr. Jenkins) who conveyed the oil to go to the likin authorities at Yoh-chow, who have been ordered to refund the amount of the likin levied on the oil.

“The governor requests that the Yamên will communicate the above for the information of the minister of the United States.”

The Yamên would observe that the likin levied on the goods by the Yoh-chow officials was almost entirely on kerosene. The likin authorities have already been instructed to refund the amount thus levied. But as to the seaweed and other miscellaneous articles, likin has been levied on them by the said office according to the rules laid down for native goods sent into the interior, and, as the amount levied is very small, there would seem this time no need to consider or take any notice of it.

The Yamên has already addressed the officials of said province, that in future, when goods are shipped from Hongkong and covered by transit passes, which are bonafide foreign goods, they must be allowed to pass freely, and illegal exactions of likin must not be levied.

The prince and ministers were about addressing the minister of the United States when they received his communication inquiring what action the Yamên proposed to take in the matter.

A necessary communication addressed to H. E. Charles Denby.

[Page 240]
[Inclosure 4 in No. 1754.]

Mr. Denby to the Tsung-li-Yamên.

Your Highness and Your Excellencies: I have the honor to acknowledge the receipt of the communication of your highness and your excellencies of the 29 th ultimo, touching the exaction of likin dues at Yoh-chow on goods covered by transit passes.

The conclusion arrived at, that likin dues collected from the American merchant on kerosene oil were illegally collected and will be refunded, is entirely satisfactory.

Your highness and your excellencies further say: “But as to the seaweed and other miscellaneous articles, likin has been levied on them by the said office according to the rules laid down for native goods sent into the interior.”

This statement, so far as it applies to goods covered by a transit pass, is by no means in accordance with the tariff treaty which was signed at Shanghai, November 8, 1858.

Rule vii of that treaty reads as follows:

“In the case of imports; notice being given at the port of entry from which the imports are to be forwarded inland of the nature and quantity of the goods, the ship from which they have been landed, and the place inland to which they are bound, with all other necessary particulars, the collector of customs will, on due inspection made, and on receipt of the transit duty due, issue a transit duty certificate. This must be produced at every barrier station and viséed. No further duty will be leviable upon imports so certificated, no matter how distant the place of their destination.’

The duty of determining whether goods are native or imported is, by this article, intrusted to the collector of customs.

Is it possible that your highness and your excellencies are going to hold, that, because similar goods to those described in the transit passes are produced in China, they will not be protected against likin by a transit pass? Such a construction would cover wheat, corn, cotton, and almost every article that is grown anywhere under the sun.

The collector of customs, who is presumed to do his duty, decided, on proof made, that the collection of likin dues on the goods described was illegal. The amount may be small, but the principle is important.

I have therefore the honor to request that your highness and your excellencies will direct that all the likin dues paid by Mr. Jenkins on goods covered by transit passes be refunded to him.

I have, etc.,

Charles Denby.