Mr. Hay to Mr. Rockhill.
(Mr. Hay states that the essential object of the revision of consular treaties is to favor Chinese financial stability and promote ability to ouy in any market and to exchange native products, wherever produced, on equal terms with all nations. Inequalities of likin should be removed, and fixed rates for all of China could be scheduled according to importance and value of imports—some higher than now, and others lower, as they can safely stand. Trade with the interior is made speculative and uncertain by the present irregular likin. Customs duties should be scheduled anew. Besides discriminating against cheaper necessaries, the present uniform rate yields inadequate revenue. Five to 15 per cent, according to the character of goods, would equalize trade without partiality or burden, and, as trade penetrates interior, would yield steadily increasing revenue. Application to the whole of China of the open door is required to do this. Equal opportunity should be had by all trading nations to sell throughout the Empire. Lower duties should be attached to imports tending to develop Chinese productiveness. Agricultural implements and simpler manufacturing machinery should be especially favored.
The Chinese can gain prosperity so as to buy what they do not produce only by developing native productions. Special trade favors to any power on the ground of reciprocity, territories, occupation, oi spheres of influence should be guarded against by stringent favored-nation clause now and for the future. It is necessary to secure increased access to interior markets. Forming of Chinese revenues should be restricted if not wholly discontinued, and an honest and uniform Imperial fiscal system be substituted. Advisory representation should be had by the principal commercial powers in the central customs administration. Allow reasonable tonnage tax on foreign cargo vessels, leaving coasting trade to China, with proviso that no additional duties fall on transshipped foreign goods or on domestic products bonded or certified for export. Identical but separate commercial treaties with each power, those not now negotiating to be permitted to conclude similar treaties.
Instructs Mr. Rockhill to sound his colleagues on these points, and advises that full statements are to-day mailed to him.)