PREFACE PREFACE xi The story of China's struggle for tariff autonomy is one that War and the subsequent conferences at Versailles and Washington touches many aspects of China's relations with foreign Powers. prepared the way for China's release from foreign dictatorship That autonomy was lost-unwittingly one might say-through a of what her tariff should be,and how at last that release came treaty imposed by a victor,and was regained after almost through the Peking Conference with its aftermath of surtaxes, ninety years not by one but by a series of treaties,born of and through the reborn spirit of national independence.The the spirit of China's national renascence and the slow-moving spirit of restitution of her foretime exploiters.Those ninety story is but an episode in China's history,but,slight as that episode may be,it is one which in the interests of peace and years were fraught with greater changes,political,economic, and social,than any that had taken place in any previous century goodwill men would do well not to forget. of China's age-long history,and in those changes this rigid treaty No apology is offered for devoting a whole chapter to the tariff,the revenue derived from it,and especially the conditions Peking Tariff Conference of 1925-1926,it will,no doubt,be which maintained.that.tariff played no insignificant role.The found heavy going,a Sahara of facts,figures,and opinions where the hapless reader may well founder and perish.But the follow- treaty tarif,devised as a measure of relief from what were felt to be intolerable trade conditions,became as time went on the ing of the battle of wits as it developed from day to day at that symbolic expression of a policy.Foreigners had come to China conference helps materially to a clear and full understanding of both the Chinese and the foreign points of view.In fact,that in quest of trade;their chief requirement was an outlet for their conference is an outstanding landmark in China's tariff history, manufactured products,and in.ignoranee of actual conditions and a knowledge of what was discussed and of what happened they believed that in China they had found an illimitable market. there is essential.to a correct appreciation of the tariff develop- Having forced the gate,and having become acquainted with the conditions obtaining within,they decided that the interests of ments that have taken place since then.For over eighty years prior to.the holding of that conference China had been in a.state their trade demanded not only firm adherence to a low standard tariff,but also insistence on the concomitants of privileged of tariff bondage.The resolution to break those fetters was sealed at that conference,and within two years from the closing taxation of transit trade,and of privileged.protection of the of the conference she had regained her freedom,but freedom foreign trader from the law of the land in which he traded.To in a world gone mad on economic nationalism. be fully understood,therefore,the story of China's struggle for What of the future?It is no part of the purpose of this tariff autonomy from the Treaty of Nanking to the treaties of yesterday must embrace not simply the dry as dust facts'concern- book to prophesy;but China's tariff freedom is once more at stake.Is 'she fated to lose it again,and,if so,will that not ing the origin and composition of the treaty tariff,but also some account of how under pressure of internal disorder that tariff inevitably result in fresh states of increasing economic conflict? came to be administered under a foreign Inspectorate,how by the Or,is it possible that the present phase may be but a stage in that evolutionary process which 'some day may ultimately lead stress of unsettled political conditions it was made applicable to the coastwise conveyance of native goods in foreign bottoms,how to economic internationalism?"Il n'est point de secrets que le temps ne revele." the collecting of half its rates as transit dues on goods to and Grateful acknowledgments are due to the late Sir Francis from the interfor clashed with the trade-taxing interests of the provincial governments and became the source of endless bicker- Aglen,K.B.E.,G.C.M.G.and to his successor Sir Frederick Maze, K.B.E.for their permission to make use of the voluminous archives ing between foreign ministers and Consuls on the one hand and Chinese authorities,provincial and eentral,on the other,how at the Inspectorate of Customs;to His Excellency Dr.H.H.Kung, Minister of Finance,for writing the Chinese title which adows Hongkong.as a foreign free-trade port on China's coast grew into a hotbed of smuggling and a constant menace to China's the front cover;and to the authorities of the British Foreign revenue rights,how some projected revisions of the tariff failed, Office for so graciously and readily permitting me to consult their invaluable collection of documents and State papers. while others were carried out but always'in such a manner as to give China the barest minimum of revenue and the foreign negotiators the maximum of trade advantage,how the Great S.F.W. Shanghai.26th April,1938.x PREFACE The story of China's struggle for'tariff autonomy is one that to'uches. many aspects of China's relations with foreign Powers. That autonorny was lost--unwittingly one might say-through a treaty imposed by a victor,and was regained after almost ninety years not by one but by a series of treaties, born of the spirit of China's 'national renascence and the slow-moving spirit of restitution of her foretime exploiter!!. Those ninety years were fraught with greater changes, political, economic, and social, than any that had taken place in any previous century of China's age-long history, and in those changes this rigid treaty , tariff, the revenue derived from it, and especially the conditions which maintained, that, tariff played no insignificant role. The treaty tariff, devised asa measure of relieffrorn what were felt tq be intolerable trade conditions, became as time went on the symbolic expression of a policy'. , Foreigners had come to China in quest of trade; their chief requirement was' an ou~let for their manufactured products,and in. 'jgnoranceof actual conditions they believed that in China they had found .anillimitable market. Having forced the gate, a,nd having become acquainted with the conditions' obtaining within, they decided that the interests. of their trade demanded not only firm adherence to a low standard tariff, but also insistence on the concomitants of privileged taxation of transit trade,and of privileged., protection of the foreign trader from the law pf the land in which he traded.' 'To be fully understood, therefore, the story of China's struggle for -tariff ·autonomyfrom the Treaty of Nanking to the treaties of yesterday' mustembrace not simply 'the dryas dust facts'concern￾ing the origin and composition of the treaty tariff, but also some account of how under pressure of internal disorder that tariff came to be administered under a foreign Inspectorate, hoW by the stress of unsettled political conditions it was made appli~able to the coastwise .conyeyance of native goods in foreign bottoms, how the collecting of' half .its rates as transit dues on ,goodE! to and , from the interior clashed with the trade-taxing interests of the provincial governments and became the source of endless bicker- , ilW between foreign ministers and Consuls on the one hand' and Chinese authorities, provincial and eentral, on the other, how Hongkong, as a foreign free-trade port on China's cpast grew into a hotbed of smuggling and a constant menace to China's revenue rights, how some projected revisions of the tariff failed, while others we.re carried out but always'in such a manner as to give China the barest minimum of revenue and the foreign negotiators the maximum of, trade I advantage, how the Great PREFACE xi War and the subsequent conferences at Vers-ailles and Washington prepared the way for China's release from foreign dictatorship of what her tariff should be,and how at last that release came through the Peking Conference with its aftermath of surtaxes, and through the reborn spirit of national 'independence. The story is but an episode in China's history, but, slight as that episode may be, it is one which in the interests of peace and goodwill men would do well not to forget. No apology is offered for devoting a whole chapter to the Peking 'l'ariff Conference of 1925-1926, it will, no doubt, be found heavy going, a Sahara of facts, figures, and opinions where the hapless reader may well founder and perish. But the follow￾ing of the battle of wits as it developed from day to -day at th~t conference helps materially to a clear and full understanding of both the Chinese and the foreign points of view. In f.act, that conference is ,an outstanding landmark in China's tarifl; history, and a knowledge of what was discussed arid of what happened there is essential to a correct appreciation of ' the tariff develop￾ments that have taken place since then. For over eighty years prior to. the holding of that conference China had been ill a' state of tariff· bondage. The resolution to break those fetters was sealed' at that conference, and withIn two years from the closing of the conference she had regained her freedom, buto freedom in a world gone'mad on economic nationalism. What of the future? It is no part of the purpose of this book to prophesy; but' China's ,tariff freedom is once more at stake. Is 'she fated to lose it again, and, if so, will that not inevitably result in fresh states of increasing-economic conflict? Or is it possible that the present phase maybe but a stage in th~t evolutionary process which some day may ultimately lead to economic internationalism? "Ii n'est point de secrets que le temps ne reveleo" , Grateful acknowledgments are due to the late Sir Francis Aglen, lLB.E., G.C.M.G. and to his successor Sir Frederick Maze, K.B.E. for their permission to make use of the voluminous archives at the Inspectorate of Customs ;to His Excellency Dr. H, H. Kung, Minister of Finance, for writi;ng the Chinese title which ad OMS the front cover' and to the authorities of the British Foreign Office fOISO gra~iously and readily permitting me to consult their invaluable collection of documents and State papers. S. F. W, Shanghai, 26th April, 1938