File No. 788/57–59.
Minister Rockhill
to the Secretary of State.
American Legation,
Peking, February 22,
1907.
No. 545.]
Sir: In continuation of my No. 504, of January
12 last, in reference to the question of customs regulations and
taxation of foreign merchandise at the city of Mukden, I have the honor
to inclose herewith the translation of a note from the foreign office,
dated February 7, which is in reply to my note of December 29, 1906
(inclosure 3 in legation dispatch No. 504).
I also beg to submit to the department a copy of my reply to the Waiwu Pu
of the 21st instant, in which I request that His Imperial
[Page 232]
Highness Prince Ch’ing direct
the customs authorities to issue exemption certificates for all foreign
goods imported into Manchuria which have paid import duty, and to
instruct the Tartar general of Shenking to cause such certificates to be
duly recognized.
I may add that I do not expect a settlement of the customs question until
the delimitation of the foreign settlements at Antung and Mukden has
been definitely determined.
In connection with this latter subject I beg to say that my note of
February 5 to His Imperial Highness Prince Ch’ing, a copy of which was
forwarded to the department in my dispatch No. 537, of the 15th instant,
remains as yet unanswered.
I have, etc.,
[Inclosure
1.—Translation.]
The Prince of Ch’ing
to Minister Rockhill.
Foreign Office,
Peking, February 7,
1907.
Your Excellency: I have the honor to
acknowledge the receipt, on the 29th of December, 1906, of your
excellency’s dispatch stating that a consumption tax was being
levied on all native and foreign goods shipped to any place in
Shengking Province; that foreign goods which have paid the import
duty can not be further taxed; that, as the city of Mukden has been
opened as a port of international trade, the rules which apply to
other treaty ports are equally applicable to it. Your excellency
therefore requested me to inform the Tartar general at Mukden that
foreign goods in the ports of international trade in the Province of
Shengking, having already paid the import duty, are not liable to
the imposition of a consumption tax in addition thereto, and that
goods of this class shipped to any of the ports of international
trade in Manchuria and covered by inland transit passes, according
to regulation, ought to be free from additional duties.
Immediately upon the receipt of your excellency’s dispatch my board
communicated with the Tartar general at Shengking, and is now in
receipt of his reply stating that the English, American, German, and
Japanese consuls-general at Mukden had presented a joint dispatch to
him in which they claim that the whole commercial area of Mukden is
open to international trade and residence and they propose to ask,
with a view to obviating the exaction of duties outside of the
settlements, that the whole commercial area of Mukden be taken as an
international trading mart, which contention he, the Tartar general,
could not admit. With regard to the statement that goods covered by
inland transit passes, according to the regulations, are free from
the payment of any additional duties whatsoever, he says that when,
as will be clone shortly, negotiations are opened for the
establishment of general regulations for the ports of international
trade these proposed customs regulations may be discussed with the
various consuls-general, an agreement arrived at, and action taken
accordingly.
My board finds that Mukden was opened as an international trading
port by China herself, as agreed upon in Article XII of the
commercial treaty between the United States and China, and in
Article X of that between Japan and China. It is clearly stated in
these treaties that suitable localities for international use and
occupation shall be set aside at the international trading marts,
not that the whole commercial area of Mukden shall be considered
open to international trade and residence. The contention of the
consuls-general at Mukden is therefore at variance with the treaties
and can not be admitted.
As to the manner in which the consumption tax was to be levied in
Shengking Province my board, not having seen the regulations, made
inquiry by telegraph of the Tartar general at Mukden and has now
received his answer to the effect that the regulations for the
collection of this levy in Shengking Province apply only to native
goods not intended for export, and to foreign goods not covered by
customs passes. My board would point out that native goods not
intended for export and foreign goods not covered by customs passes
are quite distinct from goods covered by inland transit passes, and
that such
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goods are liable
at any place for all internal taxes levied by the Chinese
authorities, and that foreign consuls must not interfere in the
matter.
It becomes my duty, therefore, to send this reply to your excellency
for your information, in the hope that you will direct the American
consul-general at Mukden to amicably arrange with the provincial
authorities of Shengking all questions which may arise.
A necessary dispatch.
[seal of the wai-wu pu.]
[Inclosure 2.]
Minister Rockhill to the Prince of
Ch’ing.
American Legation,
Peking, February 21,
1907.
Your Imperial Highness: On the 7th of
February I had the honor to receive from your imperial highness a
reply to my dispatch of December 29, 1906, referring to the levy of
a “consumption tax” in the Province of Shengking on all goods,
native or foreign, imported into that Province, no matter what their
destination.
Your imperial highness states that you had communicated the contents
of my note to the tartar-general at Mukden, and that your highness
had received a reply to the effect that the consuls-general of Great
Britain, the United States, Germany, and Japan had presented a joint
note to him, in which they claimed that the whole commercial area of
Mukden was open to international residence and trade, which he could
not admit, and that the question of customs regulations for the
ports of international trade in Manchuria can be taken up when that
of the general regulations for these marts is taken up, which will
be done shortly.
Your imperial highness regards the contention of the consuls with
respect to the area of residence and trade at Mukden to be at
variance with the provisions of the commercial treaty. As to the
“consumption tax,” your imperial highness says that, not having seen
the regulations, you had telegraphed to the tartar-general and had
received his reply, stating that the regulations for the collection
of this levy apply only to native goods not intended for export and
to foreign goods not covered by customs passes.
With regard to the question of the area of foreign residence and
trade at Mukden and other marts of international trade in Manchuria,
I had the honor to express the views of my Government to your
imperial highness under date of February 5, and I have the honor to
again invite your imperial highness’s attention to them.
Inasmuch as his excellency the tartar-general of Shengking admits
that the “consumption tax” is not to be levied upon foreign goods
provided with customs passes, I have the honor to request your
imperial highness to direct the customs authorities to issue
exemption certificates to all foreign goods imported info Manchuria
which have paid import duty, and to instruct the tartar-general of
Shengking to direct the collectors of the “consumption tax” to duly
recognize such exemption certificates, and relieve such goods from
the imposition of this tax at the towns and ports in Manchuria
opened to international trade. This will be in harmony with the
provisions of the commercial treaties which clearly exempt all
articles duly imported into China from the imposition of any tax
save the import duty while such goods are lying at an open port or
in transit from one open port to another.
Trusting that your imperial highness will comply with this request, I
avail myself, etc.,
