893.113/1030
The Minister in China (MacMurray) to the Secretary of State
Peking, March 2,
1927.
[Received April 4.]
No. 938
Sir: I have the honor to transmit herewith a
copy of a despatch from the American Consul General at Canton, No. 587
dated January 26, 1927, transmitting a translation of a despatch from
the Foreign Affairs Department of the Canton régime,50 stating that the Lee Loong Company has been
granted a monopoly for the sale in Kwangtung Province of certain
articles which are classed as “explosives” and which include sulphur,
saltpetre, smokeless powder, Chilian saltpetre and nitrate of
silver.
According to Mr. Jenkins the Lee Loong Company is a private concern and
it alone is authorized to import and distribute the articles mentioned.
He requested that the Legation communicate to him its views with regard
to the matter.
[Page 323]
There is transmitted also a copy of my instruction in reply, dated
February 23, 1927, in which I pointed out that, aside from the violation
of treaty involved in the establishment of a monopoly, the articles
monopolized include several commodities which are used for commercial
and industrial purposes, and as little restriction as possible should be
placed on their importation and sale. I authorized him, in his
discretion, to protest against the restrictions on the transportation
and sale of these commodities when they are destined for ordinary
industrial or commercial purposes.
I have [etc.]
[Enclosure 1]
The Consul General at Canton (Jenkins) to the Minister in China (MacMurray)
Canton, January 26,
1927.
No. 587
Sir: I have the honor to enclose a
translation of a despatch dated December 28 [18], 1926, from the so-called Acting Minister of Foreign
Affairs,51 concerning the establishment of a monopoly
for the sale of explosives in Kwangtung Province, including sulphur,
saltpetre, powder and silver nitrate. It will be observed that this
monopoly has been granted to a private concern which alone will be
authorized to import and distribute the articles mentioned.
While it is assumed that the Chinese Government has a right to place
any restrictions it may deem proper upon the importation of
munitions of war, including explosives, it has occurred to me that
there should be some means of determining the proper classification
of such articles and that this Consulate General should protest
against restrictions on the importation of commodities destined for
ordinary commercial uses although susceptible of employment in
connection with the manufacture of munitions of war.
Trusting the Legation will be so good as to let me have its views in
regard to this question,
I have [etc.]
[Enclosure 2]
The Minister in China (MacMurray) to the Consul General at Canton (Jenkins)
Peking, February 23,
1927.
Sir: The receipt is acknowledged of your
despatch No. 587 of January 26, 1927, transmitting a communication
from the Foreign Affairs Department of the Canton Government with
regard to the establishment of a monopoly for the sale of certain
explosives in [Page 324] Kwangtung
Province. As the Legation understands, the Lee Loong Company have
been granted a monopoly for the sale of the following articles:
sulphur, salt petre, smokeless powder, Chilean salt petre, and
nitrate of soda. Likewise when purchasing or transporting other
articles of similar nature, not specified, it is necessary to obtain
certificates from the above mentioned company. You request the views
of the Legation in reference to the action you should take.
In reply, I beg leave to state that aside from the question of a
violation of treaty involved in the establishment of a monopoly for
the sale of these articles it appears that they include several
commodities which are extensively used for commercial and industrial
purposes, and as little restriction as possible should be put on
their importation and sale. I may add in this connection, however,
that for some time past negotiations have been carried on between
the Waichiao Pu and the interested Legations concerning restrictions
on the importation of these articles. It is the opinion of the
Diplomatic Representatives that the list of prohibited articles
should be made to contain exclusively such articles as can
reasonably be described as “arms and munitions” as it is evident
that only in this way can the said list be made to comply with Rule
3 of the Revised Import Tariff.52
You are accordingly authorized in your discretion to protest to the
Canton authorities against the restrictions placed by them on the
transportation and sale of these commodities when they are destined
for ordinary industrial or commercial purposes.
I am [etc.]
