12 CHINA'S STRUGGLE FOR TARIFF AUTONOMY THE FIVE PER CENT AD VALOREM TREATY TARIFF 13 themselves than from any positive design to thwart me.Others, G:Balfour,afterwards Consul at Shanghai,to take up their however,seem to me to be influenced by the latter motive alone, residence in the consoo house and to deal there with the co-hong and all have carried on their traffic of late years under a system merchants and the Chinese officials,but Morrison,alive to the which I am.quite certain is unparalleled in any other country, interpretation that would be placed on the acceptance of such and for adopting which the only excuse that can be made is an invitation,wisely declined it.At an early stage in the that it was universal,and that any individual shrinking from discussions,the Chinese delegates,who were supplied with copies it must have been outdone and ruined by his less scrupulous of the Imperial tariff and with details of all the local charges, mercantile competitors.The fact is every individual has.been and who were under pressure from those whose interests were used.to make the best bargain he could for himself and his threatened,handed to Mr.Thom a memorandum proposing that employers through hong merchants,linguists,and other such all articles of import and of export be listed,and that opposite persons;all open to corruption and ready to evade payment of each entry there be inserted in three columns-(a)the Imperial the just dues of the Chinese Government by the most baneful duty,(b)the officially recognized charges,and (c)all other fees and wholesale smuggling,which was moreover winked at and and charges.The proposers suggested that the two former be its unlawful gains shared in by the whole of.the local authorities left untouched,and that the third be divided into ten parts of from the highest to the lowest grade.The consequence is that which so many parts should be retained to cover all costs of no merchant can tell (even supposing he.wished it)what he Custom House maintenance,the remaining number of tenths has actually paid in the shape of duties."1 In spite of the to be done away with.The completed tariff would thus show co-hong and their natural desire to keep foreign traders in (1)the regular duties,that is the combined totals of (a)and ignorance of what actually were the officially recognized taxes (b)above,and (2)the recognized official levy to be used for on trade,that information by a little ingenuity and patience the upkeep of Customs offices and staff.?The proposal was could have been obtained by the foreign merchants if they had not acceptable to the British delegates,but the data tabled were. made up their minds to get it.For the British Plenipotentiary The final result of these tariff negotiations was embodied in a it was all-important that it should be obtained,and so.to make set of tables,prepared by Mr.Thom,giving for all the articles sure that he would have as much reliable data as possible he enumerated in the import and export schedules of the tariff deputed in January 1843 Messrs.J.R.Morrison and R.Thom (a)the duties and charges authorized by the old Imperial tariff, to proceed to Canton to carry out the necessary investigations, (b)the duties and charges actually levied by the Canton and to make preparations for putting into operation the new Customs authorities,(c)the duties proposed,(d)the average Customs procedure called for by the Nanking treaty.?The quantities annually exported or imported,(e)the average price, co-hong wished these deputies,who were assisted by Captain (f)the values of the total annual export or import,(g)the percentage of the proposed duties on these valuations,and (h) 1F.O.228/23;Pottinger to Aberdeen,desp.No.7;6th February 1843. the estimated annual amounts of duty to be realized by the Pottinger's opinion of the British merchants then trading in China was not a flattering one.Writing on 19th January,1843 to-Lord Aberdeen he rates proposed.s In addition to these carefully elaborated tables states:-"I am unwillingly forced to confess that I believe there are others there were also statements showing (a)a comparative estimate who from selfish and interested motives,regard with regret and dissatisfaction of the charges on shipping according to the old and the new the peace that has been concluded,and the prospect of things being placed on a permanent footing alike beneflcial to all the subjects of both Empires, systems,(6)how the apparent loss to the Imperial Treasury who are engaged in trade."F.O.228/23 desp.No.6.Again on the 6th on cotton manufactures,woollen manfactures,and shipping February of the same year he writes:"From some [British merchants]I under the new system is provided for,(c)a rough estimate of have experienced nothing but querulous cavilling and indirect opposition to my anxious measures to place the trade on a permanent and liberal.footing." the gross sum collected on the foreign trade with China under F.O.228/28,desp.No.7;while on 19th July when negotiationg for the tariff were practically completed,he puts it on record that"as a body I 1Ch.Rep.Vol.XII;1848.p.94.F.O.17/66;Pottinger to Aberdeen, can only repeat that the merehants have rendered me no kind of assistance." F.0.228/24desp.No.85. desp.No.6,6th February 1843. iF.O.17/66 F.O.228/23;Pottinger to Aberdeen;desp.No.7.6th 2F.O.228/28;Pottinger to Aberdeen;enelo.No.24 in desp.No.24, February 1843,enclo.No.14,Pottinger to Elipoo,2ist January,1843. 25th Mareh,1843 :3 B.P.P.Statement of the Foreign Trade with China,ete.1844.12 QHINA'S STRUGGLE FOR TARIFF AUTONOMY themselves than from any positive design to thwart me. Others, however, seem to me to be i1)fluenced by the latter motive alone, and all have carried on their traffic Qf late years undet a system which I am ,quite certain is unparalleled in any' other country, and for adopting which the only excuse that can be made is that it was universal, and that any individual shrinking from it must have been outdone and ruined by his less scrupu!OllS mercantile competit()rs. The fact is every individual has, been used. to make the best bargain he could for himself and his e:tllployers through hong merchants, linguists, and other such persons; all. open to. corruption and. ready to .evade payment of the just dues of the Chinese Government by the most baneful and wholesale smuggling, which was moreover winked at and its unlawful gains shared in.by the whol~ of.thelocaI authorities from the highest to the lowest grade. The consequence is that no .merchant ,can tell (even supposing he. wished it) what\he has actually paid in the shape of duties." 1 In spite of t'ije co~hong .and their n~tural desire to keep' foreign traders in' ignoranc'e of what actually wer.e the officially recognized taxes on' trade, that information by a little ingenuity and patience could have been obtained by the foreign merchants if they. had. made up their minds to get it. For the British Plenipotentiary it was all-important that it should be obtained, and so, to make sure that he would have as much reliable data as possible he deputed in January 1843 Messrs. J. R. Morrison and R. Thom to' proceed to Canton to carry out the neces:;;ary· investigations, . and to make. preparations for putting into operation the new c.ustoms procedure called for by the Nanking treaty.2 The co-hong wis~ed these deputies, who were 'assisted by Captain 1 F.O. 228/23; 'Pottinger to Aberdeen, des'p. No.7; 6th February 1843. Pottinger's' opinion of the British merchants then trading in China was not a flattering one. Writing on 19th January, 1843 to,Lord ,Aberdeen he states :-"1 am unwillingly forced to confess that 1 believe there are others. who from selfish and interested motives, regard with regret and dissatisfaction the peace that has been concluded, and the prospect of things being placed on a permanent footing alike beneficial to all the subjects of both Empires, who are engaged in trade." F.O.228/23 desp. No.6. Again on the 6th February of the same year he writes: "From some [British merchants] 1. have. experienced nothing but querulous cavilling and indirect oppositiontp my a.nxious measures to place the trade Q,rt a permanent and Jiberal.footing." F.O. 228/23, d~sp. No.7; while on 111th July when negotiation~ fOr the tariff were practically completed, he puts it on record that-"as a body I ca.n .only repeat that the merchants have rendered me no .kind of assistance." F.O. 228/24; desp. No. 85. 2 F.O. 17/66 F.O. 228/23; Pottinger to Aberdeen;desp .. No.7. 6th February 1843, enClo. No. 14, Pottinger to Elipoo, 21st January, 1843. THE FIVE PER CENTAD'VALOREMTREAT.Y TARIFF 13 G; Balfour, afterwards' Consul at Shanghai, to take up their residence in the consoohouseand to deal there with the co-hong merchants and the Chinese officials, but Morrison, alive to the interpretation that would be placed on the. acceptance of such an invitation, wisely declined it.I At an early stage ill the discussions, the Chinese delegates, who were supplied with copies of tM Imperial tariff and with details of all the local charges, and who were under pressure from those whose interests were threatened, handed to Mr. Thoma memorandum proposing that all articles of' import and of export be listed,. and that opposite each entry there be inserted in three columns-(a) the Imperial duty, (b) the officially recognized charges; and (c) all other fees and charges. The proposers suggested that the two· former be left untouched, and that the third be divided into ten parts of which so many parts should be retained to cover all costs of Custom House maintenance,the remaining nUmber of tenths to be done away with. The completed tariff would thus show (1) the reguhir duties, that is the combined totals of( a) and (b) above,.and (2) th~ recognized official levy to bensed for the upk€ep of Customs offices and staff.2 The proposal was not acceptable ~o the British delegates, but the data tabled were. The final result of these tariff negotiations was embodied in a set of tables, prepared by Mr. Thom, giving for all the articles enumerated' in the import and export schedules of the tariff (a) the duties and chatges authorized by the old Imperial tariff, (b) the duties and charges actually levied by the Canion Customs authorities, (c) the duties proposed,(d) the average quantities annually exported or imported, (e) the average price, (f) the values .of the total annuai export or import, (g) the percentage of the proposed duties on these valuations, and (h) the estimated annual amou.nts of duty to be realized by the ratesproposed. 3 In addition to these carefully elaborated tables there were also statements showing (a) a comparative estimate . of the charges on shipping according to the old and the new systems, (b) how the apparent loss to the Imperial Treasury on cotton manufactures, woollen manfactures, and shipping· under the new system is provided for, (.c) a rough estimate 'of the gross sum collected on the foreign trade with China under 1 Ch. Rep. Vol. XII; 1843.p. 94. F.b. 17166; Pottinger to Aberdeen, desp. No.6, 6th February 1843. 2 F.O. 228/23; Pottinger to Aberdeen; enclo. No .. 24 in desp. No. 24, 25th March, 1843 . 3 B.P.P. Stateme.nt of the . Foreign Trade Ulith China, etc. 1844