File No. 893.773/12.
American Consulate,
Newchwang,
June 30, 1914.
[Inclosure.]
Consul Pontius to
Minister Reinsch.
American Consulate,
Newchwang, China,
June 30, 1914.
Sir: For the information of the Legation,
I have the honor to report that the South Manchuria Railway
announced in a recent issue of its official gazette published in
Dairen, that a reduction would be made on specific through shipments
from Japan over its railway to interior points in Manchuria. The new
rates are to take effect on the first proximo, and in a recent issue
of a Dairen newspaper direct mention is made of the fact that the
reduction in railway freights does not apply to Newchwang, the
import route via that port being
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entirely left out of account. The article also
mentioned that the new rates were limited to the Mukden-Antung line
and the import route through Dairen. The schedule of the new rates
is quoted herewith as table No. 1, and the rates previously existing
as table No. 2.
A careful examination of the two tables1 will show that the reduction applies
chiefly to cotton goods, the decrease in freight rates to
distributing points such as Mukden, Tiehling and Changchun amounting
to about 30%. Cotton goods is one of the chief staple articles of
Japanese importation into Manchuria, and this new move on the part
of the Japanese concerned appears a clever device to discriminate
against shipments of foreign manufactured piece goods into Manchuria
from Shanghai, through either the port of Dairen or Newchwang. This
fact seems self-evident when it is realized that large quantities of
American and European manufactured piece goods are continually
imported by Japanese firms from Japan through the ports of Dairen
and Antung.
What with the favorable treatment now accorded importations of
foreign goods from Japan through the port of Antung in the shape of
import tariff reduction of one-third duty, and the present
preferential freight rates extended to goods shipped to interior
points in Manchuria through Dairen, foreign firms interested in the
import trade in Manchuria apparently have every reason to complain
at the discrimination it is proposed to exercise against them. The
purpose of the South Manchuria Railway is seemingly to hamper and
obstruct further importations from Shanghai through Dairen, and
confine the commercial possibilities of Newchwang to a still
narrower sphere of activity.
In spite of the many efforts in the past to cripple the future trade
possibilities of Newchwang by those interested in the diverting of
commerce to Dairen, the former port has so far succeeded in holding
a fair share of the trade of this region, and the renewed activity
of those at present concerned in the additional tactics of
discrimination make it imperative that the Liao River conservancy
project, when means so much for the future welfare of the port, be
instituted without unnecessary delay.
I have [etc.]
