8 CHINA'S STRUGGLE FOR TARIFF AUTONOMY THE FIVE PER CENT AD VALOREM TREATY TARIFF 9 trade the five ports of Canton,Amoy,Foochow,Ningpo and Shanghai (Article II).It abolished the co-hong,leaving to fulfil the duties of an impartial umpire between the two merchants to trade with whomsoever they pleased (Article V), countries",and that he did not wish "to see the duties so high arranged for the appointment of superintendents or Consular as to encourage or foster smuggling,nor yet so low as not to officers to reside at the opened ports "to be the medium.of form a fair and legitimate source of Imperial revenue,after communication between the Chinese authorities and the said paying the expenses of establishments,etc."The Imperial merchants,.and to see that the just duties and other dues of Commissioners agreed that the tariffs in force at the five ports the Chinese Government,as hereafter provided for,are duly were different;2 but were of opinion that the tariff of regular discharged by Her Britannic Majesty's subjects"(Article II); duties,as originally authorized by the Emperor for use at Canton,should be re-examined by the Board of Revenue specified the terms which the officials of each country were to at Peking and be taken as the standard on the lines of which use when corresponding with each other (Article XI);and, the new tariff should be constructed.They also pointed out above all,stipulated for the promulgation at all the ports opened that any irregular levies and exactions would not be counten- by the treaty of 'a fair and regular tariff of export.and import anced by the Board,but that as the revenue aceruing from the Customs and other dues"(Article X).This tariff,which was regular duties was for remittance to the Imperial treasury, proclaimed at Hongkong on 22nd July,1843,2 was in two separate provision would have to be made for the funds schedules,one for exports and the other for imports,the former necessary to maintain the Customs establishments.To this the containing sixty-one items and the latter forty-eight.The Plenipotentiary replied that "whatever the amount of duties preparation of these schedules meant the fixing of the rates and charges,whether import,export,or transit may be,it to be levied,and to this end Sir Henry Pottinger,the British should be specifically defined,and not in the smallest degree Plenipotentiary,not only carried out negotiations with the two left to the arbitrary pleasure or option of the local officers." Chinese Imperial Commissioners appointed to settle the terms He pointed out that this had been the great evil at Canton,out of the treaty,but also requested the assistance of the British of which so much discussion and discontent had sprung,and merchants trading in China.To the two Imperial Commissioners urged that "the necessary salaries to clerks,writers,and other the British Penipotentiary suggested that "the authorized functionaries,high or low,be included into the scale of duties, tariff and duties of the five ports should be called for and so that merchants shall know precisely what they are to pay compared and an average struck for the whole."He assured on their merchandise,whether on importation or exportation." the Commissioners that "on the questions of import and export In order then to safeguard all the various interests up till then duties,as well as transit dues,his sole and anxious object [was] dependent on the Canton Customs,the Imperial Commissioners ordered the Hoppo,or Superintendent of Customs at Canton Seienee Review,Vol.XV.No.3,pp.422-444,and Vol.XVI,No.1, pp.75-109.For English text of the "open door"proclamation issued by the "to direct the hong merchants engaged in foreign trade to make Chinese authorities vide Appendix A. a complete return of all charges and fees"and requested the 1 This article was resented by British merchants as no corresponding Plenipotentiary "to direct some officers well experienced in,and article was inserted in the American and the French treaties.It was unilaterally abrogated by the British Government in May 1851,on the acquainted with commercial matters to learn what amount of ground that it was no longer the duty of Her Majesty's Consuls to prevent charges is actually paid on each article of their imported and the Emperor of China from being defrauded of his just dues,as the exported goods by the British merchants",+so that the necessary Emperor's own servants did not deem it necessary to do this for him.The data from both sides might be submitted to the Board of sixth of the Custom House regulations issued by the Shanghai Taotal in August,1851 provides that in future the receipts issued by the Customs banker for dues and duties are to be handed in directly at the Custom House 1Sir Henry Pottinger to Imperial Commissioners,5th September,1842; and not through the Consal N.C.H.No.56;23rd August,1851.Vide Ch.Rep,Vol.XII;1843;p.37. postea Chap.II.s 2.The capture of Shanghai in September 1855 by the 2F.O.228/18 Pottinger to Aberdeen,Enclo,No.21 in desp.No.38; Triad Society led once more to Consular intervention,as did also the im- 3rd September,1842. position of certain of the so-called Washington Surtaxes in 1928. 3 Sir Henry Pottinger to Imperial Commissioners,17th September,1842; 2Ch.Rep.Vol XII;1843;p.391.B.P.P.Orders,Ordinances,Rules Ch.Rep.Vol.XII;1843;p.39. and Regulations concerning 'he Trade in Ghina.1847;pp.5-6. 4Imperial Commissioners to Sir Henry Pottinger,23rd January,1843; Ch.Rep.Vol.XII;1843;p.96.8 CHINA'S STRUGGLE FOR TARIFF AUTONOMY tr,ade the five ports uf Canton, Amoy, Foochow, Ningpo and Shanghai (Article II). It abolished the co-hong, leaving merchants to trade with whomsoever they pleased (Article V), arranged for the appointment of superintendents or Consular officers to reside at the opened ports "to be the medium of communication between the Chinese authorities and the said merchants, ,and to see that the just duties and other dues of the Chinese Government, as hereafter provided for, are duly discharged by Her Britannic Majesty's subjects" (Article II) ;1 specified the terms which the officials of each country were to use when corresponding with each other (Article XI); and, above all, stipulated for the promulgation at all the ports opened by the treaty of ' a fair and regular tariff of export.and import Customs and other dues" (Article X). This tariff, which was proclaimed at Hongkong on 22nd July, 1843,2 was in two schedules, one for exports and the other for imports, the former containing sixty-one items and the latter forty-eight. The preparation of these schedules meant the fixing of the rates to be levied, and to this end Sir Henry Pottinger, the British Plenipotentiary, not only carried out negotiations with the two Chinese Imperial Commissioners appointed to settle the terms of the treaty, but also requested the assistance of the British merchants trading in China. To the two Imperial Commissioners the British Penipotentiary suggested that "the authorized tariff and duties of the five ports shoUld be called for and compared and an average struck for the whole." He assured the Commissioners that "on the questions of import and export duties, as weI!. as transit dues, his sole and anxious object [was] Science Revie1.v, Vol. XV. No.3, pp. 422-444, and Vol. XVI, No.1, pp,75-109. For English text of the "open door" proclamation issued by the Chinese authoritie.i$ vide AppendixA. 1 This article was resented by British merchants as no corresponding article was inserted in the American. and the French treaties. It was unilaterally abrogated by the British Government in May 1851, on the ground that it was no longer the duty of Her Majesty's Consuls to prevent the Empsror of China from being defrauded of his just dues, as the Emperor's own servants did not deem it necessary to do this for him. The sixth of the Custom Heuse regqiatiQIIs issued by the Shanghai Taotai in Augt1st 1851 provides that in future the receipts issued by the Customs banker fOT dues and duties are to be handed in directly at the Custom ·House and not through the ConSUl. N.G.n. No. 56; 23rd August, 1851. Vide postea Chap. II, § 2, The capture of Shanghai in September 1853 by the Tri ad Society led once more to Conoular intervention, as did also the im￾position of certain of 'the so-called Washington"Surtaxes in .1928. 2 Ck, Rep. Vol. XII; 1843; p. 391. B.P.P.O,'ders, Q,'dinances, Rules and Regulations (;oncerning 'he Trade :in Ghinli. Ui47; pp. 5-6. THE FIVE PER CENT AD VALOREM TREATY TARIFF 9 to fulfil the duties of an impartial umpi~e between the two countries", and that he did not wish "to see the duties so high as to encourage or foster smuggling,nor yet so low as not to form a fair and legitimate source of Imperial revenue, after paying the expenses of establishments, etc."l The Imperial Commissioners agreed that the tariffs in force at the five ports were different;2 but .were of opinion that the tariff of regular duties, as originally authorized by the Emperor for use at Canton, should be re-examined by the Board of Revenue at Peking and be taken as the standard on the lines of which the new tariff should be constructed. They also pointed out that any irregular levies and exactions would not be cOi.)l1ten￾anced by the Board, but that as the revenue accruing from the regular duties was for remittance to the Imperial treasury, separafe provision would have to be made for the funds necessary to maintain the Customs establishments. To this the Plenipotentiary replied that "whatever the amount of duties and charges, whether import, export, or transit may be, it should be specifically defined, and not in the smallest degree left to the arbitrary pleasure or option of the local officers." He pointed out that this had been the great evil at Canton, out of which so much discussion and discontent had. sprung, and' urged that "the necessary salaries to clerks, writers, and other functionaries, high or low, be included into the scale of duties, so that merchants shall know precisely what they are to pay on their merchandise, whether on importation or exportation."3 In order then to safeguard all the various . interests up till then dependent on the Canton Customs, the Imperial Commissioners ordered the Hoppo, or Superintendent of Customs at Canton "to direct the hong merchants engaged in foreign trade to make a complete return of all charges and fees" and requested the Plenipotentiary "to direct some officers well experienced in, and acquainted with commercial matters to learn what amount of charges is actually paid on each article of their imported and exported goods by the British.rnerchants",4 so that the necessary data from both sides might be submitted to the Board of J Sir Henry Pottinger to Imperial Commissioners, 5th September, 1842, Ch. Rep. Vol. XII; 1843; p. 37. 2 P.O. 228/18 Pottinger to Aberdeel), Enclo, No, 21 in desp.No. 38.;· 3rd September, 1842. . 3 Sir Henry Pottinger to Imperial Commissioners, 17th September, 1842; Ch. Rep. Vol. XII; 1843;p, 39. 4 Imperial Commissioners to Sir Henry Pottinger, 23rd January, 1843; Ch. Rep. VoL XII; 1843, p. 96