File No. 8602/11–15.
Chargé Fletcher to
the Secretary of State.
American Legation,
Peking, April 7,
1908.
No. 898.]
Sir: In continuation of my No. 801 of December
26, 1907, and in reply to the department’s instruction No. 410 of
February 12, 1908, I have the honor to inclose copies of two notes which
I have addressed to the Wai-wu Pu on the subject of the collection of
taxes on American goods in addition to those prescribed by treaty at
several places in China. I also inclose the replies of the foreign
office to show the department the manner in which these questions are
dealt with and the difficulty of making satisfactory progress. It is
true that latterly some of the larger questions have been expedited by
the presence of Yuan Shih-k’ai in the Wai-wu Pu, but routine business is
still transacted in the unsatisfactory manner reported in my No. 794 of
December 14 last.
The matter of the collection of likin duties within the harbor limits of
Shanghai having been referred to the diplomatic corps by the consular
body, I have the honor to inclose copy of the note of the dean to the
Wai-wu Pu in relation thereto.
I have, etc.,
[Inclosure 1.]
Chargé Fletcher
to the Prince of Ch’ing.
American Legation,
Peking, March 30,
1908.
Your Highness: On December 3 last I had the
honor to address a note to Your Highness on the subject of the
collection at Shun-to Pu of a tax of 60 cash a case on American
kerosene oil, which in the opinion of the legation is in violation
of treaty stipulations. To this note I have received no reply.
In again bringing this matter to the attention of Your Highness’s
board, it is my duty to inform you that similar taxes, unwarranted
by treaty, are being levied at T’ai-yuan-fu, in the Province of
Shansi. American kerosene oil is shipped to the latter place by the
Standard Oil Co. to the Chinese firm of I Chu Kung Sasu ( ), and
after the transit dues have been duly paid, additional taxes
amounting to 6 tael cents per case are charged by the local
officials, to
[Page 140]
which is
added a tax of 2 tael cents per case for yamen runners’ fees, making
the total unlawful taxation amount to 8 tael cents per case.
As pointed out in my note of December 3 last, to which I have had the
honor to refer, this taxation seems opposed to the letter and spirit
of the treaties. For if local taxation of this kind is permitted,
the treaty stipulations as to import and transit dues become
nugatory.
The amount of the tax imposed in the cases complained of is small,
but Your Highness will readily see that if a small amount is
allowable a larger amount could also be imposed and the trade
greatly injured and possibly extinguished. Foreign products are
imported into China for the use and consumption of the people, and
it is useless to fix by treaty the import and transit duties, if the
goods are to be subjected to special additional taxes when they
reach the Chinese merchant.
It becomes my duty, therefore, in calling this new instance to the
attention of Your Highness to renew the legation’s former protest
against the imposition on American goods of taxes in addition to
those prescribed by treaty.
I avail, etc.
[Inclosure 2.]
Chargé Fletcher
to the Prince of Ch’ing.
American Legation,
Peking, March 30,
1908.
Your Highness: Under date of November 20
and December 26 last I had the honor to call the attention of Your
Highness’s board to the levy of a contribution or tax on American
kerosene oil by the central likin office at Nanking. A reply was
received from Your Highness dated January 4 informing the legation
that the matter had been referred by letter to the superintendent of
trade for the south, since which time no further communication has
been received by the legation in regard to this most important
matter.
On the 13th of January last, however, an official proclamation was
issued by the head likin office, of which proclamation I inclose a
copy, in which the collection of this tax is ordered and the names
of the collectors given.
As the legation has heretofore stated to Your Highness, this tax is
in violation of treaty provisions. It is the settled conviction of
my Government that a port which, under the treaties, is declared
open to international residence and foreign trade is opened in its
entirety. Nanking is a treaty port and the charges and duties upon
American goods imported therein have been fixed by treaty. Any extra
or additional taxes, no matter how large or small nor whether the
goods be in Chinese or foreign hands, is contrary to treaty. Any
other interpretation of the treaty stipulations would open the way
for unlimited taxation and render the formal provisions of the
treaty of no effect.
Trusting that Your Imperial Highness’s board will agree with me that
these taxes are unwarranted, and will give orders in this sense to
the local officials.
I avail, etc.
[Inclosure 3.]
The Dean of the Diplomatic
Corps to the Prince of
Ch’ing.
American Legation,
Peking, March,
1908.
Your Highness: On behalf of the foreign
representatives, I have the honor to transmit for the information of
Your Highness’s board copies of correspondence which has passed
recently between the consular body at Shanghai and the customs
taot’ai on the subject of the levy of likin on foreign merchandise
within the harbor limits of the port, and to inform Your Highness
that the communication of the consular body to the taot’ai has the
approval and expresses the views of the foreign representatives.
[Page 141]
It has always been held by the Governments of the treaty powers that
the duty-free area of a port, which under the treaties has been
declared open to international trade, comprises the whole area of
the port, including, of course, the harbor thereof, and that the
taxes and charges leviable on foreign goods imported therein and
native goods exported therefrom are those only which are specified
in the treaties.
Further, as regards foreign imports, it has always been held that,
even after they have been sold to Chinese firms they are not liable
to further taxation within the treaty-port area; and it is only by
strict observance of these principles that the proper distinction
can be preserved between “treaty ports” and “the interior.”
In the interests, therefore, not only of trade but of friendly
relations, I have the honor to request that the Shanghai likin
authorities may be instructed to conform with this principle and
make no exactions on foreign imports, whether in foreign or native
hands, or on foreign-owned produce intended for export, within the
treaty-port area.
I avail, etc,
——— ———.
[Inclosure
4.—Translation.]
The Prince of Ch’ing
to Chargé Fletcher.
Foreign Office,
Peking, April 7,
1908.
Your Excellency: I have the honor to
acknowledge the receipt of your note of March 30 with regard to the
levy of a so-called “voluntary contribution “upon oil by the central
likin office at Nanking. You state therein that on January 13 last
an official proclamation was issued by the central likin station at
Nanking, a copy of which you inclosed, ordering the collection of
the tax to continue; and you expressed the hope that my board will
agree with you that the tax is unwarranted, and will give orders in
that sense to the local authorities.
In reply, I have the honor to state that upon receipt of your
previous note in connection with this affair, received in December
of last year, my board referred the matter to the superintendent of
trade for the south for a reply. Having now received this your
second note my board has communicated again with the superintendent
of trade urging him to reply in the matter as soon as possible. In
the meantime, however, it becomes my duty to send this reply.
A necessary dispatch.
[Seal of the Waiwu Pu.]
[Inclosure
5.—Translation.]
The Prince of Ch’ing
to Chargé Fletcher.
Foreign Office,
Peking, April 7,
1908.
Your Excellency: I have the honor to
acknowledge the receipt of your note of March 30, 1908, calling
attention to your note of December 3, 1907, on the subject of the
taxation of oil at Shuntefu. At the same time you state that similar
taxes, unwarranted by treaty, are being levied at T’aiyuan-fu, in
the Province of Shansi. In this instance it appears that American
kerosene oil is shippped to T’aiyuan-fu by the Standard Oil Co. to
the Chinese firm called the I Chu Kung Sau, and after the transit
dues have been paid, additional taxes amounting to 6 tael cents per
case are charged by the local officials, to which is also added a
tax of 2 tael cents per case for yamen runners’ fees. Such taxes,
you state, are opposed to the letter and spirit of the treaties.
In reply I have the honor to state that upon receipt of your note of
December 3, 1907, my board referred the matter to the viceroy of
Chihli, but up to the present no reply has been received from him.
Upon receipt of your second note, however, my board communicated at
once with the governor of Shansi, and also sent a further
communication to the viceroy of Chihli urging him to reply in the
matter as soon as possible. In the meantime, however, it becomes my
duty to send this dispatch for your information.
A necessary dispatch.
[Seal of the Waiwu Pu.]
