File No. 551/46–47.
Minister Rockhill to the Secretary of State.
Peking,May 17, 1907.
Sir: On April 15 last the evacuation of Manchuria by the Russian and Japanese forces was completed, and it was understood that arrangements with China had already at that date been settled upon for the opening of customs-houses on the land frontier and at the seaports, so that international trade would at once be put on a normal basis, and that the arbitrary and very unsatisfactory conditions which have so prejudicially affected our commercial relations in this part of China since the termination of the Russo-Japanese war would promptly come to an end. The assurances to this effect given me repeatedly by the Russian and Japanese ministers were clear and emphatic; I was led to expect the opening of Chinese customs-houses at Dalny, Antung, Manchuli, and Suifen within a few days, certainly by May 1.
On May 2 the Japanese minister told me that within a few days all arrangements would be completed for the opening of the Dalny customs and that they would be put in form at once, without awaiting action by Russia in the north. Notwithstanding this, I was informed on the 14th by the Waiwu Pu that it could not be foreseen when these negotiations could be completed. The day before yesterday I was told that the Japanese were delaying concluding the arrangements on account of the question of the carriage of Chinese mails by launches plying between Dalny and Chinese ports on the coast under the steam inland navigation regulations. When this matter is disposed of, it is greatly to be feared that other questions equally irrelevant will be brought up by the Japanese for purely dilatory purposes, and I concluded that I should report to you without further delay the highly unsatisfactory condition of affairs in Manchuria.
I therefore sent you the following cablegram:
May 16.
Consul-general of the United States at Mukden reports conditions at Antung since the evacuation unchanged. Not possible to establish settlement. Opening of the customs Dalny may be delayed considerably. Russian customs arrangements for north Manchuria are dragging and unlikely to be perfected soon. Prospects of return to normal commercial conditions, Manchuria, this year very poor.
The delay the Russians are at present experiencing in concluding their arrangement with the Chinese for the opening of customs-houses in the north turns on the interpretation of the provisions in treaties in force between Russia and China providing for the payment of reduced import duties (two-thirds of the maritime tariff) on goods entering China by land. The Russians contend that goods subject to this reduced import duty can be transported to any point along the railway lines in Manchuria without being liable to further duty; the Chinese claim that the payment of two-thirds duty only entitles such goods to pass the Chinese frontier, and that they must pay transit clues (50 per cent additional) to clear” them to points further in the country. The contention of the Russians is certainly correct, and it is approved by those of my colleagues who are interested in Manchurian commercial questions. It is in conformity with our own contention that foreign goods imported into Manchuria by sea should pass free of duty to any inland opened mart after having once paid full tariff import duties. It should be remembered that all the principal stations along the Manchurian railway lines, both in the south and in the north, are also open to international residence and trade.
The Russian minister has informed me that he will insist on his interpretation of this point, regardless of the delay it may occasion.
The British minister informed me to-day that he had already called his Government’s attention to the dilatoriness of the Japanese in fulfilling their pledges, and that he proposed doing so again, notwithstanding the assurances given him within the last few days by the Japanese minister.
I note in the recent report made by the imperial maritime customs on the trade of 1906 that in that year Japanese products valued at £2,600,000 were imported into Manchuria, of which only £300,000 worth passed through Niuchwang, where they were subject to import duty, the balance entering duty free.
I have, etc.,