No. 176.
Mr. Denby to Mr. Bayard.

No. 577.]

Sir: I have the honor to inclose herewith a translation of the reply of the Yamên to my communication on the camphor monopoly in Formosa, which was forwarded to you in my dispatch No. 555, of January 26 last.

It will be seen that this communication is evasive and irresponsive. It is stated that camphor may still be bought by foreign merchants in places near the sea-ports “if procurable there,” and that “official control” of the trade is taken only in the disturbed districts.

In fact the objectionable proclamation made the trade in all the island a Government monopoly. I do not know that any American is interested in the camphor trade in Formosa, but the subject is important as being on the part of the ministers an effort to force the Imperial Government to compel the viceroys to comply with treaty stipulations. There will be further correspondence on the subject with the Yamên.

I have, etc.,

Charles Denby.
[Inclosure in No. 577.]

The Foreign Office to Mr. Denby.

Your Excellency: Upon the 25th January ultimo the prince and ministers had the honor to receive a communication from your excellency in the matter of the camphor trade in Formosa, in which you requested that the rules agreed upon in the eighth year of Tung Chih (1869) governing the trade in this article still be continued in force, and that it shall not be carried on as a Government monopoly. In regard to this case the Yamên has sent repeated communications to the governor of Formosa in which the question at issue has been discussed. During the summer of 1887 the Yamên received a report from the governor of Formosa as follows:

“Shui Ti Liao is over 300 li from the capital of Formosa, and conterminous with the borders of the districts inhabited by the aborigines. The passes issued by the customs authorities clearly stipulate that foreign merchants in purchasing camphor must not proceed to places in close proximity to the country occupied by the aborigines and their trade, to the end that trouble may be avoided, in the present case of the German merchant Tui Hsing (Lauts and Haesloop) proceeding to the said place to trade, this was a violation of the stipulations of treaty set forth in the customs passes. In a word, Formosa camphor is not produced in the outer mountainous region inhabited by the Chinese. Since the tenth year of Kuang-hsü, no exportation of camphor has been made, and as evidence of this fact there is the customs return [Page 263] which can he examined. The provincial monopoly in camphor is in that produced in the inner mountainous region inhabited by the aborigines which has been brought under subjection by the governor.

“The provincial government has, at its own expense, established military stations there as a means of protecting this business. It will thus be seen that the present condition of affairs is hot the same as formerly. Foreign merchants are still permitted to purchase camphor, if procurable, near the sea-ports, the same as the German firm Tui Hsing who have also made purchase at Lu Chiang, a place settled and free from disturbances. But to places conterminous to the region settled by the aborigines foreign merchants should not proceed, in due observance of the conditions prescribed in the customs passes.

“As to ShuiTi Liao, this is a place where the aborigines appear and disappear. A feud exists between the Chinese and aborigines there; they kill each other, and there are repeated cases of murder. There can be no harm by the foreign ministers at Peking instructing their respective consular officers, in conjunction with the local authorities, to proceed to said place for the purpose of ascertaining whether or not it is conterminous to the boundaries of the aboriginal region. Whether or not Chinese as well as foreign merchants formerly bought camphor there it is not convenient to accept the one-sided statement of foreign merchants, and these alone as authentic. The present system of conducting the camphor trade in Formosa is not in violation of the treaty and agreement.”

The Yamên would observe that from the above report at places near the sea-ports camphor, if procurable there, can still be purchased by foreign merchants without regard to whether it is official or not, but in the inner mountainous regions, settled by aborigines recently brought under subjection by the governor of Formosa, as the trade has been opened at the expense of the Government, makes it another matter, and the action taken by the Formosan authorities can not be regarded as a violation of treaty or of the agreement in their placing the trade in question under official control.

Disturbances easily arise in the districts settled by the aborigines, and in not wishing foreigners to proceed far into the interior is purely from a desire of complete friendliness. The action taken in the premises is in accordance with the treaties.

The prince and ministers believe that your excellency will, with a spirit of impartiality, look into the matter and regard the statements made in this communication as being in order.