No. 174.
Mr. Denby
to Mr. Bayard.
Legation of
the United States,
Peking, February 15, 1888.
(Received April 21.)
No. 572.]Sir: I have the honor to inclose herewith a
translation of the reply of the Yamen to my dispatch (No. 1) of January 25,
relating to the levying of lekin on goods bought at a treaty port in Formosa
for export.
It will be seen that the Yamên defends the lekin chiefly on the ground that
the foreign merchants have generally failed to take out transit passes, and
as they do not thus pay half duty should pay lekin.
The foreign ministers insist that the provincial authorities should collect
lekin in the interior; that, if they fail to do so, it is their fault; and
that there is no warrant for collecting lekin on goods owned by foreigners
at a treaty port.
There will be further correspondence on this subject, which will be reported
to you.
I have, etc.
[Inclosure in No. 572.]
The foreign office to Mr.
Denby.
Peking, February 11,
1888.
No. 2.]Your Excellency: Upon the 25th of January,
1887, the prince and ministers had the honor to receive a communication
from your excellency in the matter of the levy of lekin in Formosa (from
foreign merchants) on native produce, which you regarded as a violation
of treaty stipulations, etc.
It appears that lekin has been levied on tea in northern Formosa for a
long time, and in southern Formosa there has been in force what is
termed “chuan huo lekin,” or lekin on ships and goods. The rules
governing the two systems are not exactly the same. Since Formosa was
changed into a provincial government the necessary funds (adequate to
meet the expenses) have been very large. The governor, therefore,
decided to do away with the name “chuan huo lekin” and adopt the mcdus operandi existing in other provinces and
impose lekin on all articles of merchandise, a system universally
carried out there. Formosa is somewhat different as compared with other
provinces. In the other provinces the places where native products are
produced are a very long distance from the sea-ports, and there are also
a great many lekin stations. Hence native goods in
transitu to a treaty port have to pay the lekin duties exacted
en route. If foreign merchants procure transit passes and purchase
native produce in the interior, on the arrival of the goods at the
barrier nearest the port the transit dues due thereon shall be paid.
The trade in the interior of Formosa has not, as yet, been fully opened.
In South Formosa the principal articles are sugar and sugar-cane. These
are produced in close proximity to the capital city, and it is
absolutely necessary that lekin should be collected near there. Further,
there is only one route where lekin is levied, and the tax is much
lighter than the impost of a similar character in other provinces. The
object of levying this tax is to provide revenue, still at the same time
to regard the interest of the mercantile classes. The lekin barrier
established is at a place called Si Lei, 5 li (little over 1½ English
miles) from An Ping. The barrier at An Ping is solely for the
examination of goods; the system in force in Nantai and Amoy, in the
province of Fukien, has been followed—there is no difference.
If foreign merchants purchase produce in Formosa and under the
regulations apply for transit passes they pay half duty; otherwise lekin
is levied on the goods. This rule is certainly not in the least at
variance with the provisions of treaty.
The Yamên, some time ago, sent a note of inquiry to the governor of
Formosa and that officer made a report setting forth in a clear and
concise manner every detail (regarding this business). The governor
further stated that during the sugar season this year no transit passes
have been applied for by foreign merchants who have exported sugar and,
under the regulations, to pay lekin can not in the least be a matter of
inconvenience to them.
A necessary communication, etc.
