14 CHINA'S STRUGGLE FOR TARIFF AUTONOMY THE FIVE PER CENT AD VALOREM TREATY TARIFF the old system and its manner of distribution,and (d)a rough 15 estimate of the gross sums to be collected on the foreign trade For instance,among the exports,the rates for aniseed star, with China according to the new system and the probable camphor,gamboge,rhubarb,raw silk,and vermilion were manner of its distribution.By the middle of June the import reduced by approximately fifty per cent;those for capoor and the export schedules of the new tariff,showing the rates cutchery,glass beads,grasscloth and sugar candy by proposed were ready for submission to Sir Henry Pottinger. approximately sixty-six per cent;those for mats,nankeens,and He considered them very satisfactory,but,judging from other sugar by approximately seventy-five per cent;and those for information at his disposal,thought.that as regarded the china root,brass ware,and turmeric by approximately eighty import schedule-"the scale proposed ..is more advanta- per cent.The only two exports of importance which it was geous for the importer than even the merchants themselves thought should contribute a larger revenue were silk piece goods have ventured to bring forward."His only apprehension was and silver and gold ware,the rate for the former being that the Chinese Government might object to it as being too increased almost fifty per cent while the rate for silverware favourable to foreign importers.The same held true of the and goldware was more than trebled..The rate for tea,the export schedule,and if the Chinese Government were to raise most important export of all,was fixed at two and a half taels objections to either.schedule on the ground of the rates quoted a picul,a rate about twenty-five per cent higher than the old being too low,he authorized the British delegates to sanction rate,of combined imperial and local charges.Among the reasonable increases.1 By the 10th July the Chinese negotiators imports the duty on ginseng 1st quality was reduced by.sixteen had signified their approval of the proposed rates,but at the per cent;the rates for asafoetida,birds'nests 2nd quality, same time insisted that the tariff must be submitted to the long cloths,cow bezoar,lead,steel,tin and smalts were reduced Throne for approval,on the two-fold ground that the treaty by approximately fifty per cent;grey twilled cotton,cutch, stipulated that the tariff should be made known by the Board iron,nutmegs,pepper,putchuk,rattans,and long ells by of Revenue and that if the tariff were not clearly defined by approximately sixty-six per cent;raw cotton cambrics and Imperial decree it was to be feared that the various Customs muslins,gambier and sandalwood by approximately seventy-five Superintendents at the new treaty ports would refuse to act per cent;birds'nests 1st quality,cloves,broadcloth and Spanish in obedience to notifications issued only by the Chinese stripes by approximately eighty per cent;the rate on sapan negotiators.2 In view,however,of the fact that no fewer than wood by approximately eighty-seven per cent;and that on thirty British vessels were waiting to discharge their cargoes, Dutch camlets by approximately ninety per cent.On three but were unwilling to enter because the tariff and the new trade articles of import the duty was increased,namely,cochineal, regulations had not been promulgated,Keying yielded to linen,and quicksilver.In the case of the first article it was Pottinger's urgent representations and declared the port of more than doubled,and for the latter two almost doubled. Canton open under the new system from 27th July 1843. There is nothing to indicate that these new rates were worked Pending receipt of final instructions from Peking the other four out on a five per cent ad valorem basis,in spite of the note ports were,however,still to remain unopened.a The rates, appended to the tariff that articles not enumerated,whether then,of the new tariff agreed upon by the Chinese and the exports or imports,would be liable to duty at that rate.On British negotiators were based on those of the old Imperial the contrary,in the import schedule of the tariff it is expressly tariff of regular duties,exclusive of local charges and fees. stipulated that gums,metals,and woods not enumerated are to These new rates were in the great majority of cases for both pay duty at the rate of ten per cent ad valorem,a fact which exports and imports much lower than those formerly prevailing. clearly shows that a fixed inflexible five per cent ad valorem rate applicable in all cases was not then the fetich that it 1F.O.228/24;enclos.Nos.21 and 22 in desp.No.85,Pottinger to Aberdeen;19th July,1843. afterwards became.A further proof,however,of this will be 2Ibid.enelos.Nos.6;8 and 13 found in the returns of trade for Canton during the year ending 3 F.O.17/68;F.O.228/24;Pottinger to Aberdeen;enclo.No.15 in desp. 31st December,1844,as submitted by the British Consul at No.85,19 th July,1843. 1Ch.Rep.Vol.xI1;1843;pp.393-897.14 CHINA'S STRUGGLE FOR TARIFF AUTONOMY the. old system and its manner of distribution, and (d) a rough eS~lmate .of the gross sums to be collected on the foreign trade wIth Chma according to the new system and the probable manner of its distribution. By the middle of June the import and the export schedules of the new tariff, showing the rates propose~ were ready for submission to Sir Henry Pottinger. !Ie consIdered them very satisfactory, but, judging from other ~nformation at his disposal, thought, that as regarded the Import schedule-Hthe scale proposed . . . is more advanta￾geous for the importer than even the merchants themselves have ventured to bring forward." His only apprehension was that the Chinese Government might object to it as being too favourable to foreign importers. The same held true of the . export schedule, and if the Chinese Government were to raise ob!ections to either. schedule on. the ground of the rates quoted bemg too low, he authorized the British delegates to sanction reasonable increases'! By the 10th July the Chinese negotiators had signified their approval' of the proposed rates but at the same time insisted that the tariff must be submitted to the T~rone for approval, on the two-fold ground that the treaty stipulated that the tariff should be made known by the Board of Re~enue and .that if the tariff were not clearly defined by Imperial decree It was to be feared that the various Customs Superintendents at the new treaty ports would refuse to act in obedience to notifi.cations issued only by the Chinese negotiators.2 In view, however, of the fact that no fewer than thirty British. v.essels were waiting to discharge their cargoes, but were unwIllmg to enter because the tariff and the new trade regulations had not been promulgated, Keying yielded to Pottinger's urgent representations and declared the port of Cant~n open. under the new system from 27th JUly 1843. Pendmg receIpt of final instructions from Peking the other four ports were, however, still to remain unopened. 3 The rates, then, of the. new tariff agreed upon by the Chinese and the Bri~ish negotiators were based on those of the old Imperial tanff of regular duties, exclusive of local charges and fees. These new rates were in the great majority of cases for both exports and imports much lower than those formerly prevailing. 1 F.O. 228/24; enclos. Nos. 21 and 22 in desp. No. 85 Pottinger to Aberdeen; 19th July, 1843. ' 2 Ibid. enclos. Nos. 6; 8 and 13 3 F.O. 17/68; F.O. 228/24; Pottinger to Aberdeen; enclo. No. 15 in desp. No. 85, 19th July, 1843. 'fHE FIVE PER CENT AD VALdREM TREATY TARIFF 15 For instance, among the exports, the rates for aniseed star, camphor, gamboge, rhubarb, raw silk, and vermilion were reduced by approximately fifty per cent; those for capoor cutchery, glass beads, grasscloth and sugar candy by approximately sixty-six per cent; those for mats, nankeens, and sugar by approximately seventy-five per cent; and those for china root, brass ware, and turmeric by approximately eighty per cent. The only two exports of importance which it· was thought should contribute a larger revenue were silk piece goods and silver and gold ware,therate for the former being increased .almost fifty per cent while the rate for silverware and goldware was more than trebled. The rate for tea, the most important export of all, was fixed at two and a half taels a picuI, a rate about twenty-five per cent higher than the old rate. of combined imperial and local charges. Among the imports the du'ty on ginseng 1st quality was reduced by. sixteen per cent; the rates for asafoetida, birds' nests 2nd quality, long cloths, cow bezoar, lead, steel, tin and smalts were reduced by approximately fifty per cent; grey twilled cotton, cutch, iron, nutmegs, pepper, putchuk, rattans, and long ells by approximately sixty-six per cent; raw cotton cambrics and muslins, gambier and sandalwood by approximately seventy-five per cent; birds' nests 1st quality, cloves, broadcloth and Spanish stripes by approximately eighty per cent; the rate on sapan wood by approximately eighty-seven per cent; and that on Dutch camlets by approximately ninety per cent. On three articles of import the duty was increased,. namely, cochineal, linen, and quicksilver. In the case of the first article it was more than doubled, and for the latter two almost doubled. 1 There is nothing to indicate that these new rates were worked out on a five per cent ad valorem basis, in spite of the note appended to the tariff that articles not enumerated, whether exports or imports, would be liable to duty at that rate. On the contrary, in the import schedule of the tariff it is expressly stipulated that gums, metals, and woods not enumerated are to -pay duty at the rate of ten per cent ad valorem, a fact which clearly shows that a fixed inflexible five per cent ad. valorem rate applicable in all cases was not then the fetich that it afterwards became. A further proof, however, of this will be found in the returns of trade for Canton during the year ending 31st December, 1844, as submitted by the Brltish Consul at / 1 Ch. Rep. Vol. XII; 1843;pp. 393-397