File No. 893.512/38.
[Inclosure.]
Consul Williams
to Chargé MacMurray.
No. 5.]
American Consulate,
Nanking,
August 7, 1914.
Sir: I have the honor to enclose a copy of
a communication46
received from the local agency of the Standard Oil Company of New
York complaining of the likin collections at Hsiakuan.
It is believed that this matter will be self explanatory, and it will
be seen that it raises two separate issues: first, the outstanding
dispute as to whether or not Nanking is open to foreign trade as a
treaty port; and second, whether or not the Chinese may stultify the
opening of a port by the collection of likin on every package of
merchandise leaving the area set apart for foreign trade and
residence.
A reference to the sketch enclosed in the company’s letter shows that
its installation is on the Island of Hsiakuan, and is therefore
within the area which, the Chinese allege, constitutes the port of
Nanking. To transport merchandise into the city two routes are
available, via a system of creeks to the Han Hsi Gate, and by road
through the I Feng Gate. On each route is a likin station which
levies a tax on goods passing in or out. If the contention of the
foreign treaty powers be adopted, i. e. that Nanking itself is an
open port—as clearly stated by treaty—there can be no doubt that the
collection of likin on goods en route between Hsiakuan and the city
is a violation of treaty stipulations. Unfortunately, it is more
than likely that the likin stations of which complaint is made were
instituted by the Chinese with the object of emphasizing the fact
that they do not regard the city of Nanking as a treaty port. As
this question is one of some years standing, which has already been
discussed from every possible point of view, I have no hope of being
able to remedy locally the abuses of which complaint is made, and,
while representations will be made to the provincial authorities, it
is believed that the only chance for a settlement favorable to
foreign interests lies in pressure on the Central Government by the
Diplomatic Body. I am informed that the British and German Ministers
have made representations on this subject recently.
The second point mentioned raises a much broader and less clearly
defined issue. As has been stated likin is collected on all goods
destined for Nanking city, and, incidentally, for other points to
the south. The only other direction in which merchandise can be
moved from Hsiakuan is via the Hui Min Creek to the Yangtze, and in
point of fact the only important point to which the merchandise is
moved—apart from the city itself—is Pukow. The Chinese authorities
have established apparently a likin station on the east bank of this
creek—see sketch plan—within the area admitted by them to be the
open port, and collect there likin on all merchandise passing.
“Apparently” is used advisedly as the Standard Oil Company states it
has suspicions of the legality of the collection. It may prove
possible to obtain the abolition of this station on the ground
either that it is illegitimately established or that it is within
the settlement area.
But it is felt that the authorities should not be permitted to
establish likin stations on all the boundaries of any settlement or
settlement area, as thereby they stultify the whole object of an
open port and, in effect, increase the import duty to the extent of
the likin collected. It appears to be an absurdity that the payment
of import duty should free goods only to the wharf or go-down and
that when moved to any market in any direction they should be
compelled to pay an additional exaction.
I venture to suggest that the company be directed to refuse payment
of this latter tax, and that the matter be taken up with the Chinese
authorities along the lines indicated in the preceding paragraph;
the possible illegitimacy of the [Page 127] station and its establishment within the
settlement are being raised as minor issues only.
I have the honor to request the Legation’s instructions in the
premises. A copy of this despatch has been forwarded to the
Department of State.
I have [etc.]
