No. 190.
Mr. Denby
to Mr. Bayard.
Legation of
the United States,
Peking, March 27, 1888.
(Received May 5.)
No. 602.]Sir: I have the honor to inclose herewith a
translation of a dispatch received from the Tsung-li Yamên on the subject of
“drawbacks,” in reply to my note inclosed in my dispatch to you numbered
554, of date January 26, 1888.
The Yamên proposes that from the fourteenth year of the reign of the present
Emperor, beginning on the 112th customs quarterly period (July 1, 1888), all
drawback certificates will be received in payment of all kinds of duties at
the customs where they were issued. This rate, however, shall not apply to
outstanding drawbacks.
Under the present system, drawbacks being receivable only for coastwise
duties, it is plain that to make them receivable for all duties will greatly
appreciate their value and prevent their accumulation.
I would have preferred that the merchant should only be required to give bond
that he would export the goods sent from the interior to a port of shipment
in one year, or failing to so export them would pay the penalty of the
bond.
My impression is, however, that the merchants and the foreign ministers will
cheerfully accede to this settlement of a troublesome question.
I have, etc.,
[Inclosure in No. 602.]
The Foreign Office to Mr.
Denby.
Your Excellency: In January last the Prince and
ministers had the honor to receive a note from your excellency in the
matter of drawbacks on native produce exported from the Yangtze ports,
wherein you observed that the rules in force seemed to be detrimental to
the interest of foreign merchants, and you therefore requested that they
be modified, etc. In regard to this matter the Yamên have repeatedly
communicated with the northern and southern ministers-superintendent for
foreign trade to instruct the several customs authorities under their
respective jurisdictions to take under consideration the question as to
whether or not a modification in the present system could be effected,
and to present a report embodying the true facts of the case. These
officers have now presented a report, as follows:
“When native produce is shipped at a river port the shipper must pay both
export and coast-trade duty before he ships it. Drawbacks issued can be
tendered in payment of coast-trade duties. This rule was adopted with a
view to guard against shippers secretly carrying out schemes and
smuggling. It has been in force for a long time. Moreover, when the
special rules for tea were framed, some years ago, it was clearly made
known that these could not be taken as a precedent governing other
articles of native produce, and it was no easy matter to alter the
established rules.”
The Yamên would observe that in regard to this question, since there are
in force fixed rules, it has not been convenient to suddenly make a
change in them; but since your excellency has stated that they are
working disadvantageously to the interest of merchants, and requested
that they may be modified, the Prince and ministers could not but
consider how an arrangement could be made, thus manifesting a desire to
befriend the foreign merchants.
It is therefore proposed that from the fourteenth year of Kwanghsü,
beginning on the one hundredth and twelfth customs quarterly period
(July 1, 1888), all drawback certificates issued before that date will
be received in payment of all kinds of duties at the custom-house where
they were issued. Drawbacks that were issued previous
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to that period will he received in payment
of coast-trade duties at the office from whence they emanated. Under
this rule on the one hand new drawbacks will not accumulate, and on the
other hand old drawbacks can, from time to time, be all redeemed. This
system will not prove detrimental to either the customs or the
merchants—the modification made is just and equitable, of which the
Prince and ministers believe your excellency will approve.
Now besides having written to the northern and southern
ministers-superintendent for trade in turn to instruct the customs
authorities on the Yangtze River to alike observe the new regulation,
the Prince and ministers send this communication for your excellency’s
information.
