Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 8, 1914

File No. 893.512/38.

The Secretary of State to Consul Williams.

No. 7.]

Department of State,
Washington , September 23, 1914 .

Sir: The Department has received your despatch No. 6 of August 8th enclosing a copy of your despatch of August 7th to the Legation at Peking concerning the collection of likin at Hsiakuan, the area set apart by the Chinese for foreign trade and residence.

This Government has heretofore insisted that when a city is opened to foreign residence and trade it is the city and not [merely] an adjacent district that is open and that therefore likin can not be collected on goods carried from the landing or settlement into the city. Certain places, however, were opened to trade not by treaty but by voluntary action of the Chinese Government, and in these cases a definite area has been set aside, usually outside the city gates, for the residence and trade of foreigners.

The Chinese authorities have claimed the right to place likin barriers between these settlements and the city proper. Nanking was declared an open port, however, in the French treaty of 1858. It was not formally opened until 1899, when the river suburb, Hsiakuan, was set aside for the foreign settlement. It is the opinion of the Department that the long delay in carrying out the provision of the treaty can not alter the tenor of that provision and that Nanking, not [merely] Hsiakuan, is open to foreign residence and trade.

As to the second point raised in your despatch to the Legation, the treaties provide for import upon payment of import duty. No likin is collectible, therefore, on goods going from the port into the city. Goods going elsewhere are subject to payment of inland transit tax in lieu of likin or must pay likin.

I am [etc.]

For the Secretary of State:

Wilbur J. Carr

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