Mr. Denby to Mr. Blaine.

No. 1153.]

Sir: It is known to the Department that in the year 1887 Mr. Little, a subject of Great Britain, built a small steamer for the purpose of navigating the Yang-tse between Ichang and Chun-Khing. This intention was based on the Chefoo agreement of 1876, wherein it was stipulated that—

British merchants will not be allowed to reside at Chun-Khing or to open establishments or warehouses there so long as no steamers have access to the port.

This clause is, in its terms, rather indefinite. Sir Thomas Wade said that it was so made intentionally, but English merchants claimed that it was an implicit agreement that steamers might ascend to Chun-Khing.

When the steamer was nearly ready to make the attempt to go up the [Page 200] river, the British minister deemed it advisable to procure the assent of the Imperial Government before making the proposed voyage. Negotiations followed, but the local objections were so great to the use of steam on the river that the yamên delayed granting the permit. It occurred to the Chinese that a way out of the difficulty would be to buy outright the steamer Kuling, which had been especially built to ascend the gorges. But this scheme was seen to be a mere makeshift, as it would deter no other British subject from entering upon the same enterprise and could not do away with the Chefoo agreement.

Inspector-General Hart was called in as an arbitrator. He proposed that steam should be excluded, but trade might be carried on in native boats. The British foreign office approved this compromise, with the understanding that the Kuling should be bought, and that Little should be compensated for his loss of time. Sir Robert Hart was empowered to offer to Little 120,000 taels for the purchase of the steamer and go-downs and for his compensation. This offer was accepted.

Finally a new agreement was made, of which I send you inclosed a copy.

By the articles agreed on Chun-Khing becomes an open port; the English may hire Chinese boats or build and use boats of their own after the Chinese pattern; they shall be subject to the general trade regulations prevailing on the Yang-tse; the boats shall be provided with passports and shall be subject to the supervision of the customs taotais; as soon as Chinese steamers ascend the river English steamers may go up; the convention shall be as binding in all respects as the Chefoo convention.

I have, etc.,

Charles Denby.
[Inclosure in No. 1153.]

Chun-Khing convention.

Article I.

Chun-Khing is hereby declared to be an open treaty port, enjoying the same privileges and similar in all respects to the other treaty ports in China. English merchants are permitted to trade between Ichang and Chun-Khing in all kinds of merchandise, and they are permitted to purchase or hire Chinese boats to carry their wares and cargoes. But if the English wish to build boats of their own, they are permitted to do so under certain conditions only. Those conditions are that they build boats only after the Chinese pattern, and that they employ Chinese crews exclusively.

Article II.

English merchants trading between Ichang and Chun-Khing, and employing boats for the transportation of their merchandise, shall trade in the same articles as they carry between Ichang and Shanghai, shall be subject to the same regulations as apply to traders between these ports, and pay duty according to the rules established for the trade of the Yang-tse ports.

Article III.

The boats shall be provided with passports, flags, and cargo manifests, all in due order. The merchandise to be transshipped to places above Ichang, as well as that going to traders in that port and Chun-Khing, is to be supervised by the customs taotai for Chuen-Tung and Chun-Khing, the commissioner of customs, and the English consul, which officials will also determine the rules that are to govern the transactions of merchants. They are also to take such measures for the revision of such trade regulations as may be found at any time insufficient or inadequate.

[Page 201]

Article IV.

In case Chinese boats are employed by the English, the rules and regulations now in force in the Yang-tse ports shall be strictly adhered to. Such boats must pay for their licenses at Chun-Khing and Ichang. Boats built and owned by the English, after the Chinese pattern, must also pay their tonnage dues and register their flags and passports. Boats that fail to comply with all these requirements will not be eligible for the benefits of the convention; but boats that have taken all the measures herein provided will be allowed to trade freely between Ichang and Chun-Khing. Boats’ passports and such documents will not be transferable. All the other boat will come under the customary rules.

Article V.

As soon as Chinese steamers bring merchandise to Chun-Khing for trading purposes English steamers will be permitted to come also.

Article VI.

This Chun-Khing convention shall be considered in the same light as the Chefoo convention and be as binding in every respect as that treaty.