My predecessor inclosed with his No. 673 of May. 1, 1880, a memorandum and a
draft of rules submitted to the diplomatic corps by Mr. von Brandt, the
German minister. The rules, after some revision, were placed before the
Tsung-li Yamen for consideration.
On the 27th of September the Yamen sent to Mr. von Brandt a paper setting
forth certain alterations which they suggested in the provisional rules
recommended by the diplomatic corps. A copy of this paper is herewith
inclosed.
Mr. von Brandt submitted this communication of the Yamen, with a memorandum
upon it, to the ministers at a conference held here on October 25. In the
discussion which followed most of the positions taken up by Mr. von Brandt
in his memorandum were approved, but some changes were made in certain
amendments which he proposed to make in the rules. I have thought I could
best describe the details of the action of the conference by annotations on
the margin of the memorandum, which is inclosed.
On the 19th instant the Yamen, in an interview with Mr. von Brandt, announced
that the opposition of the provincial authorities to Rule II and Rule III, 1
and 2, was so strong that they could not see their way clear to assent to
them. But they asked him to give them in writing his reasons for urging
those rules.
At a conference held on the 22d instant Mr. von Brandt read to the diplomatic
body a draft of the reasons which he proposed to send to the foreign office
for desiring the two rules as well as the others.
The ministers, without formally adopting the whole paper, authorized him to
close with the statement that his colleagues could not comprehend why Rules
II and III should be unacceptable to them. Mr. von Brandt stated to his
colleagues that, in the interview with the foreign office he received the
impression that they were not willing to agree finally to the rules, but
that they wished to be provided with reasons to press upon the reluctant
provincial officers. He will present his communication to them at an early
day.
[Inclosure 2 in No. 52.]
Memorandum on alterations proposed by the Tsung-li
Yamên or Mr. Von Brandt on the provisional rules for transit passes
outward.
[The notes on the margin describe the
action taken by the foreign ministers at the conference held October 25,
1880.]
Rule I, 1.
Mr. von Brandt’s suggestion approved, and Rule I, 1,
as altered, accepted. There seems to be no objection to the
alteration of Rule I, 1, as proposed by the Yamên, the rule being in
fact little more than a paraphrase of the one originally proposed by the
foreign representatives.
Rule I, 2.
The addition to Rule I, 2, approved. The
addition to Rule I, 2, proposed by the Yamên, does also seem acceptable;
it has been indeed already accepted by the German Empire for transit
passes inwards in § 7, of the supplementary rules to the additional
convention of March 31, 1880; a similar rule being contained in Rule IV
of the supplementary rules to the British supplementary convention of
October 24, 1869.
Rule I, 3.
The addition to Rule I, 3, accepted.
There
seems to be no objection against the principle announced in the addition
to Rule I, 3, proposed by the Yamên, that in the absence of goods
subject to confiscation, their value as given in the transit certificate
should be paid as a fine by the merchant guilty of a transgression of
the rules.
[Page 209]
Rule I, 5.
The Yamên’s proposal rejected and Mr. von Brandt’s
exception insisted upon. The proposal of the Yamên to expunge
from the rules the exception in favor of goods for the northern ports
seems unacceptable in view of the fact that it may be impossible to
transship the goods within the time specified. The rule ought therefore
to be maintained or rather extended, so as to give power to the customs
on application to grant an extension of the time for reshipment in every
case where it is proved to their satisfaction that shipment within the
prescribed time will be impossible.
Rule I, 8.
The Yamên’s proposal accepted, but the phraseology to
be made clearer. There seems to be no objection to the
proposal of the Yamên that the name of the merchant, to whom the goods
are transferred, should be communicated to the consul and through him to
the superintendent of customs.
Rule I, 9.
The Yamên’s proposal rejected. Joint jurisdiction to
be insisted on. The proposal of the Yamên to omit Rule I, 9,
is unacceptable; the joint jurisdiction in all cases of fines or
confiscation being the necessary corollary to the concessions made by
the foreign representatives in the proposed regulations. There seems
farther to be no reasonable ground why the procedure agreed upon in
1868, and accepted by the Chinese Government as well as the governments
of the treaty powers, with regard to confiscations and fines, which was
inserted also in the British supplementary convention of 1869, Article
IX, should not be put in force also with regard to the rules now under
consideration.
Rule II.
The rule expunged must remain. The assertion of
the Yamên that no duty-free native produce exists, has no foundation,
whatever, as can be seen by the British treaty of 1858 rules, Rule II,
where it is expressly stated that the above-mentioned articles pay no
import or export duty. The rule expunged by the Yamên will therefore
have to be reinserted.
Rule III, 2.
The Yamên’s alteration rejected. The alteration
proposed by the Yamên seems neither practical nor practicable and ought
to be rejected.
In addition to the alterations proposed by the Yamên some other
alterations and additions might be introduced with advantage into the
proposed rules, the acceptance of some of the proposals made by the
Yamên giving sufficient cause to the foreign negotiator to make some new
proposals also on his part.
Rule I, 4.
Add to: At the arrival of the produce at the barrier nearest the port or where there is no further barrier
*
between the one at which the transit certificate was
issued and the port at the custom-house.
This addition seems desirable, especially with reference to Hoichow and
Pakhoi, in order to avoid the necessity of produce bought at the
mainland having to pass through Hainan.
As a further addition to this rule the following might be proposed:
The proposed addition approved.
In case of alleged damage or deterioration of goods en
route, the customs on the application of the merchant will inspect
the goods, and if the damage, etc., be proved, grant a proportionate
diminution of the transit dues.
This form of amendment rejected. The same object
might, perhaps, be obtained by inserting in Rule I, 7, after “while at
the ports,” “or en route” and after, “a reduction
in the amount of export duty” “or transit
dues.”
The Chinese translation of Rules II and III, 1 and 2, having seemed, on
further consideration, to be liable to misconstruction on the part of
the Chinese authorities it is proposed to adopt in their place the
annexed Chinese version of which the following is the exact English
translation:
[Page 210]
Rule II.
The passage in brackets amended thus: “When relanded
it is exempt, according to rule, from tariff import duty, but has to
pay a coast trade duty.” Whenever any native produce declared
to be exempt from tariff import and export duties by Rule 2, is shipped,
it is to be shipped accordingly exempt from tariff export duty; [but
when relanded it is to pay a coast trade duty while exempt according to
rule from tariff import duty.] As for this coast trade duty, its amount
is declared to be 2½ per cent. ad valorem.
Rule III, 1.
This to be substituted for the original. Native
merchandise bought at the port is to pay tariff export duty when
shipped, but is not to be called on to pay any other duty or tax,
whatsoever. With the sole exception of native merchandise, brought from
the interior under treaty transit passes, all native merchandise to be
shipped is to be considered as bought at a port and treated
accordingly.
Rule III, 2.
Strike out the first word “native.” Native goods
manufactured at a port from native produce, whether arrived there under
transit passes from the interior or procured otherwise, pay tariff
export duty on shipment, but are not called on to pay any other duty or
tax whatsoever.