Historical Documents - Office of the Historian

Minister Rockhill to the Secretary of State.

American Legation,
Peking, July 18, 1906.

No. 353.]

Sir: I have the honor to inclose herewith for your information copies of my correspondence with the consul-general at Hankow on the subject of the regulations for the governing of the proposed new commercial settlement at Chang-te-fu, Honan, which was opened to foreign trade and residence on July 2, 1906.

You will note that I have objected to the clause of Article II limiting leases to a period of thirty years as not being in accordance with Article III of the commercial treaty of 1903 between the United States and China, and also to Article IX, in which China herself arranges for the policing of the settlement.

I have, etc.,

W. W. Rockhill.

[Page 205]

[Inclosure 1.]

Mr. Martin to Mr. Rockhill.

Hankow, June 19, 1906.

Sir: I have the honor to forward herewith a copy of the regulations for the governing of the proposed new commercial settlement at Chang-teh-fu, Honan.

This city is situated in the Yuan River not far from the west shore of the Tung-ting Lake, and will be opened to foreign business and residence on July 2, 1906.

(Signed)

Wm. Martin.

[Subinclosure to inclosure 1.]

regulations for the new commercial settlement at chang-teh-fu, honan, china.

Article I. The locality extending alongside the river bank outside of the city of Chang-teh-fu, commencing at the city gate and reaching to the Lung Tse Bridge and then to Huang Ching Ko, and bounded at the front by the river (Yuan River), at the back partly by the city wall and partly by the boundary stones erected at the openings of the streets, is set aside to be a commercial settlement.
Art. II. Within this proposed settlement law-abiding citizens of all treaty nations are allowed to lease land for the building of houses, jetties, business premises, and godowns. If the land is in the name of the Government, they are to lease it from the officials; if it is private, they are to lease it directly from the owners. The rental is to be decided upon by both parties, according to the value of the land, but the matter must first be reported to the deputy of the measuring and constructing office, that he may, in conjunction with the local officials, examine the title and report to the taot’ai (customs), who will record the transaction and issue a leasing certificate. When the lease has been completed the lessee, if a Chinese, will produce this certificate to the commissioner of customs, and if a foreigner, to his consul, with an amount of money equal to 5 per cent of the value as a fee, to be sent to the customs taot’ai for him to forward to the district officials, that the certificate may be stamped and the name of the taxpayer changed. The customs taot’ai will then write tothe consul requesting him to notify the foreign purchaser to draw up a bond, in which the foreigner should state that he is willing to comply with all the regulations of the settlement. This bond will be retained by the customs.
The foreigner will then be allowed to take possession of the land, but the tenure of the lease, after being decided upon by the lessee or lessor, will be clearly stated in the lease certificate so as to avoid trouble. If the lease is drawn up for a number of years, such number should not exceed thirty years. At the expiration of the stated time the land will revert back to the original Chinese lessor.
As the settlement includes Chinese property for the most part, foreigners can not lease all of it, and the Chinese should be allowed to continue their business within the bounds of the settlement. As they are not acquainted with the regulations drawn up, the customs taot’ai should, with the aid of the commissioner, make in detail some regulations for the control of the Chinese residing in the settlement, the same to be issued in a proclamation that they may comply with them.
Art. III. Foreigners are to pay a yearly land tax of $2 per mow on the land they have leased, and also a sum of money equal to 2½ per cent of the rental value of their house or land as a revenue for the upkeep of a police force in the settlement. This will take the place of the various taxes paid by the Chinese in this vicinity. From the day upon which the lease is granted the lessee should pay the annual land tax, together with the stamping fee. Thereafter he should pay the full amount due as land tax to the commissioner during January of each year, to be forwarded, through the taot’ai, to the magistrate, who will then issue a tax receipt. The tax to be used in keeping up the police should also be paid during January of each year to the commissioner, to be forwarded by him to the taot’ai, who will issue a receipt. If anyone is unable to make the payment at the appointed time, an extension of three months may be made, but if he should still fail to pay within this extended limit, the customs [Page 206] taot’ai will write to his consul requesting that the person be severely punished or fined.
Art. IV. As churches established for preaching convert the people to do good, and as they carry on orphanage, hospital, and other works of public benefit, they are different from places there for business; so the churches in this settlement, no matter whether they were established long ago or recently, will be exempt from paying the police tax. The stamping fee and land tax must, however, be paid by them in accordance with the regulations.
Art. V. The jetties alongside the river at Chang-teh used by the native boats are the public property of the merchants. They will be neither leased nor sold in order to avoid trouble. Chinese and foreign steamers navigating the river will endeavor to avoid any inconvenience to the native craft and shipping anchored or plying in the river. Should any merchant, Chinese or foreign, lease or purchase places near the river boat jetties he must give up 5 feet on each side of the jetty he builds as a public passage for passersby. The public truck along the river bank should be at least 6 feet wide and will under no consideration be occupied by the lessee of the adjoining land. This will be a benefit both to him and to the people.
Art. VI. Lessees or owners along the river intending to build a bund or jetties or other construction work of a like nature must first make known to the commissioner their purposes. He will communicate with the customs taot’ai who will instruct the district officials to investigate it. This must be done before work is commenced. In building warehouses, living houses, and godowns in this settlement, if any buildings are dangerous to the public interests or the materials unfit for use, etc., the construction office will direct them (the lessees) to make the necessary changes, which they should comply with. No huts or low wooden houses will be allowed in the settlement, so as to avoid the danger of fire to adjoining property.
Art. VII. If within the present settlement there are any houses obstructing the road or roads, the municipal council or police station will order them pulled down and rebuilt in the right place, so as to secure the necessary road, or buy the houses at an appraised value and pull them down, so that the road will be uniform and clean. The lower part of this settlement known as Huang Ching Ko is now occupied by poor people and may not be required at present when the place is just starting, but as soon as the business increases the constructing office is to either select a place to which these people can move or purchase their land at just prices, according to the circumstances of the time.
Art. VIII. No gunpowder, explosives, etc., which might be dangerous to life and property are allowed to be stored or secreted in or brought through the settlement. In case such materials are necessarily required for the completion of certain works the matter should first be reported in detail to the customs taot’ai and commissioner that they may instruct the constructing office to investigate into it and grant permission. After receiving the consent thereto of the taot’ai and commissioner the party will be notified as to the proper place for storing it and the limit of time in which it must all be consumed. For the storage of kerosene oil, the place must first be examined and special permission granted, otherwise no one will be allowed to store it. Filth, dirt and other matter which may be injurious to the health of the settlement must all be removed. Should any party violate this provision he will be fined according to the regulations.
Art. IX. The jurisdiction of this settlement will be held by the customs taot’ai of Chang-teh acting in conjunction with the commissioner of customs. All foreign merchants residing in the settlement must of course be protected by the Chinese officials in accordance with the treaties. Police administration is important for the place and it should be carried out in accordance with the treaties between China and Great Britain, United States, and Japan, drawn up during the 28th and 29th years of Kuang-hsu (1902 and 1903); that is, that the police work is to be carried out by China herself with the aid of the commissioner of customs. The regulations will be made out and forwarded to the higher authorities, who will appoint a man well acquainted with the workings of the police force and understanding the treaties to carry out the police administration. Such regulations must be complied with both by foreigners and Chinese.
Art. X. The postal service in this settlement will be carried out solely by the imperial Chinese post-office. Postal suboffices or branches of any foreign post-office will not be allowed to establish themselves therein. All work such as [Page 207] building roads, installing telegraphs, electric lights, waterworks, telephones, and all other general improvements of public benefit and interest are to be carried out by China with her own funds. No foreign nations should interfere with this work or try to take part in it.
Art. XI. This settlement at Chang-teh is a flourishing place and all building materials are more expensive than at any other place. As all the works are to be done under the jurisdiction of the taot’ai and commissioner, all materials brought into or taken out of the settlement are to pay a wharfage duty of 2 per cent, i. e., 2 taels on each 100 taels, to be used in the construction and repair of the jetties and roads.
Art. XII. If any special improvements involving great expenditure are to be undertaken, and which demand an extra assessment of taxes, the matter must first be taken up and considered, first, by the customs taot’ai and commissioner; second, by all the foreign consuls; and, third, by a representative party chosen by the residents of the settlement. The work will then be taken up under the supervision of the taot’ai and commissioner.
Art. XIII. The residents in filling land to build on must secure the earth from some place outside and at a distance from the settlement, as no one will be allowed to take mud from places inside.
Art. XIV. This new commercial settlement will provide a place outside of the city of Chang-teh for foreigners, with their families, to live in, do business, etc. Inside the city of Chang-teh and all territory outside the bounds of this settlement are regarded as inland places and will be so considered in all matters pertaining to its jurisdiction. If in the future the business so increases in this settlement that the present place becomes too small, it will be extended according to the requirements.
Art. XV. Chang-teh is in touch with Yunnan and Kwei-chou on the west and with Kinchou on the south. As a customs office is now being established in the city, there will be a iarge number of both Chinese and foreign merchants coming. As the river is often filled with sand and very shallow, it will probably be impossible for steamers to get up to the city, so chartered junks by flying Chinese and foreign flags will be allowed to move cargo up to the city and to bring it away. Steam launches may also ply there to draw these boats. Chartered junks will have to be dealt with in approximately the same manner as provided for in the Chungking regulations (customs), and steam launches similar to the customs regulations at Soochow. Aside from these two kinds, all boats will be dealt with by the likin stations.
Art. XVI. Both Chinese and foreign merchants using their own boats or chartered junks which are drawn by launches must apply to the customs for certificates granting them permission. The customs will make numbers to be painted on both sides of the vessels so that they can be easily recognized. A flag will also be made to fly on the masts of these boats so that they can be distinguished from native boats, and examinations easily made.
Art. XVII. With regard to a garden in the settlement or a summer resort in the hills, if a public garden for the use of foreign officials and residents is ever desired, the taot’ai will select the place and carry out the work of its improvement; and if a summer resort is needed on some mountain, the taot’ai will make the choice of some place when the times require it. The money to meet the expenses of such places will be raised by the foreigners within the settlements.
Art. XVIII. All goods imported for shops and godowns into the settlement, on which duty has been paid, will be exempt from likin charges when brought into the settlement, but when the goods are sold to Chinese and taken out of the place, a charge for landing will be made by the likin stations. The maximum charge or likin on such goods should not exceed 2½ per cent of the value thereof. For goods intended for export the likin must have been paid in full before application is made the customs for the cargo to be loaded into steamers. For rice (husked or unhusked) the likin and all assessments for charitable purposes must have been paid before it can be exported. Both Chinese and foreign merchants must act alike and in accordance with the regulations. Chinese merchants are not permitted to use the names or signs of foreign merchants, and foreign merchants are not permitted to use their influence to aid Chinese. Any person violating these provisions will be fined and punished accordingly.
Art. XIX. If any deed for a lease is lost or damaged, the matter must be reported to the oflicials in detail, and reliable guarantors provided, and must have been advertised in the newspapers for three months before new certificates [Page 208] can be secured. If a foreigner intends to sublease, mortgage, or transfer bis land to another, he must produce his old deeds to his consul, who will forward them to the taot’ai, where they will be recorded and a new certificate issued to the new lessees. This person must pay the stamping fee as provided in the regulations. If a foreigner wishes to return home, or in case of accident, he should report to the constructing office the name of his attorney or trustee and also have the same recorded with his consul. After the date upon which the bounds of this settlement are made, any Chinese selling or mortgaging their house or lands, no matter with whom the transaction is made, it must be reported in detail to the constructing office and a record of the same made, with the names of the seller, purchaser, and middlemen. Such deeds must be forwarded to the magistrate’s yamen and be stamped before the purchaser can take possession. If any secret transfer is made, it will be invalid and the parties will be punished for attempting the stamping fee.
Art. XX. In establishing theaters, inns, and teashops, within the settlement, taxes will be levied on them according to their capital and volume of business, to be decided on from time to time.
Art. XXI. The judgment in all lawsuits within this commercial settlement will lie with a deputy appointed by the customs taot’ai. Those cases in which foreigners are concerned will be reported, for the time being, by the deputy to the taot’ai, who will, write to the consul at Hankow or Changsha for decision and action. As soon as all nations have consuls at Chang-teh the taot’ai and these consuls will decide upon regulations to govern a mixed court in the settlement. Cases in which foreigners are not concerned will still be dealt with by the deputy and local officials.

The above regulations are proposed as a temporary trial. If in the future any changes are deemed advisable the taot’ai and commissioner will from time to time take up the matter.

(Drawn up by the Yochow Taot’ai Han and the Yochow commissioner of customs.)

[Inclosure 2.]

Mr. Rockhill to Mr. Martin.

Peking, July 16, 1906.

Sir: I have the honor to acknowledge the receipt of your No. 205 of June 19, with inclosed regulations for the proposed commercial settlement at Chang-te, Hunan.

You are directed to call the attention of the Chinese authorities concerned to the fact that the clause of Article II limiting leases to a period of thirty years is not in accord with the provisions of Article III of the commercial treaty of 1903 between the United States and China, which provides that “citizens of the United States may * * * in all ports or localities * * * which are now open or may hereafter be opened to foreign trade and residence * * * rent or lease in perpetuity land and build thereon.”

You will also call attention to the fact that the treaty of 1903 between the United States and China makes no such arrangement for the policing of settlements by China herself, as stated in Article IX. The regulations for the settlements of Mukden and Antung are to be drawn up after consultation between the two Governments.

You will inform the Chinese authorities that the American Government can not consent to any regulations for the proposed commercial settlement at Ch’ang-te which in any way abridges the rights of American citizens in China as guaranteed by existing treaties.