THE FIVE PER CENT AD VALOREM TREATY TARIFF 11 10 CHINA'S STRUGGLE FOR TARIFF AUTONOMY of ascertaining,they were of opinion that nothing could be Revenue for the drawing up of an equitable tariff.In the gained by preparing the suggested report,requested the meantime Pottinger issued on 14th November 1842 a proclama- Plenipotentiary to procure for them from the Canton authorities tion forbidding British merchant vessels to go to any of the a copy of the Imperial tariff,and desired to be informed what ports,Canton excepted,about to be opened by.treaty.until arrangements were to be made for the carrying on of the trade the tariff and scale of duties should be fixed.1 On 28th at Canton after the co-hong had been formally abolished. December the Plenipotentiary went in person to Macao intend- Thereupon Sir Henry Pottinger administered a tart and well- ing to have there a conference with the British merchants on deserved rebuke,and the merchants thinking better of their this tariff issue;but on second thoughts decided to get their uncomplying attitude,carried out a partial investigation of the views in writing.In doing this,he requested them to "bear in rates levied on some of the principal articles of trade,pointed mind that the benefits of a commercial treaty beyond all others, out especially that,although the regular Imperial export duty must be so far as possible reciprocal if we hope and wish that on tea was less than two taels per picul yet the total charges they shall be permanent,and that you will also remember that actually collected amounted to six taels per picul,and put the nearer the points now to be fixed can be made to approach forward the suggestion that "if the Chinese authorities would to,and assimilate with,what is at present in force in China, prefer stating the amount which at the present estimate of the and the more simple the whole system,the better hope may trade they consider should be collected as Imperial duty",the be indulged in that it will work well".?The British merchants merchants"might without difficulty prepare a tariff dividing each on being thus appealed to were at first not sanguine about being duty on the several articles of trade."As an additional reason able to supply the desired information,and were inclined to for their inability to provide further details they pointed out wait for the production of the Imperial tariff and other "that the invariable custom in Canton has been for the foreign documents by the Chinese authorities.However,at a meeting merchants to purchase exports at prices including all duties and held on the last day of the year 1842 they appointed a committee charges,and to sell imports at rates excluding such items." of five "to draw up such recommendations in regard to the alteration of the tariff,and other commereial matters as might $3.But the business of preparing "a fair and appear to be beneficial to British interests,"and to act as the Preparation of regular tariff of export and import Customs and channel of communication with the Plenipotentiary.s The the tariff.Rates latter urged them to submit a report,based on their 'long adopted based other dues"called for something more reliable on old Imperial and more thoroughgoing than scrappy informa- experience of the trade of China,showing what alterations in tariff,not on fixed five per tion and naive suggestions.That the merchants the system then prevailing they would wish to see effected and sent ad whose interests were those most at stake should what tariff duties and other charges they.would recommend basis.Analysis have proved unable,after several generations of for the future.The Plenipotentiary also pointed out that in of tariff rates. trading,to supply such information is an case the recommendations of the merchants'report and the indication that so long as profits were good there was no findings of the Peking Board of Revenue were in substantial compelling necessity for them to acquire by hook or by crook accord,the tariff could be settled without delay or trouble,but full and clear details of the exorbitant Customs levies of which that if there were important discrepancies he would be in a they complained.Pottinger had no doubts on this point. position to urge a reconsideration of the Chinese proposals.4 Writing to Lord Aberdeen on the unhelpful attitude of the To this the merchants replied that as the new tariff was to be British merchants he states;"I now think there are some based on the regular Imperial duties,which they had no means whose conduct proceeds more from downright ignorance of the 1 F.O.17/59 F.O.228/20;Pottinger to Aberdeen;desp.No.70;10th questions under discussion,and a consequent dread of exposing December,1842. 2F.O.17/59 F.O.228/20;Pottinger to Aberdeen;desp.No.76;81st 1Ch.Rep.Vol.XII;1843;p.42. December,1842. 2Ibid.Vol XII;1843;pp.98-99.Merchants'Committee to Sir Henry a Ch.Rep.Vol.XII;1843;p.41. Pottinger,8th February,1843:F.O.17/66;enclo.No.2 in desp.No.12. 4F.O.17/66 F.O.228/23:Pottinger to Aberdeen;enelo.No.6 in desp. Pottinger to Aberdeen,21st February,1843. No.3,12th January,1848.Ch.Rep.Vol.XII;1843;p.42.10 CHINA'S STRUGGLE FOR TARIFF AUTONOMY Revenue for the drawing up of an equitable tariff. In the meantime Pottinger issued on .14th November 184'2 a proclama￾tion forbidding British merchant vessels to go to any of the ports, Canton excepted, about to be opened by· treaty until the tariff· and scale of duties should be fixed. l On 28th December the Plenipotentiary went in person to Macao intend￾ing to have there a conference with the British merchants on this tariff issue; but on second thoughts decided to get their views in writing. In doing this, he requested them to "bear in mind that the benefits of a commercial treaty beyond all others, must be so far as possible reciprocal if we hope and wish that . they shall be permanent, and that you will also remember that the nearer the points now to be fixed can be made to approach to, and as.similate with, what' is at present in force in China, and the more simple the whole system, the better hope may be indulged in that it will work well".2 The British merchants on being thus appealed to were at first not sanguine about being able to supply the desired information, and were inclined to wait for the production of the Imperial tariff and other documents by the Chinese authorities. However, at a meeting held on the last day of the year 1842 they appointed a committee of five "to draw up such recommendations in regard to the alteration of the tariff, and other commercial matters as might appear to be beneficial to British· interests,"· and to act as the channel of communication with the Plenipotentiary.3 The latter urged them to submit a report, based on their long experience of the trade of China, showing what alterations in the system then prevailing they would wish to see effected and what tariff duties and other charges they, would recommend for the future. The Plenipotentiary also pointed out that in case the recommendations of the merchants' report and the findings of the Peking Board of Revenue were ·in substantial accord, the tariff could be settled without delay or trouble, but that if there were important discrepancies he would be in 8,' position to urge a reconsideration of the Chinese proposals.4 To this the merchants replied that as the new tariff was to be based on the regular Imperial duties, which they had no means 1 F.O. 17/59 F.O. 228/20; Pottinger ,tc> Aberdeen; desp. No. 70; lOth December, 1842. 2 F.O. 17/59.F.O. 228/2'0; Pottinger to Aberdeen; desp. No. 76; 31st December, 1842. 3 Ch. Rep. Vol. XII; 1843; p. 41- 4F.O.17/66 F.O. 228/23: Pottinger to Aberdeen;enclo. No.6 in desp. No.3, 12th January, 1843. Ch. Rep. Vol. XII; 1843; p, 42. THE FIVE PER CENT AD VALOREM TREATY TARIFF 11 of ascertaining, they were of opinion that nothing could be gained by preparing the suggested report, requested. t.he Plenipotentiary to procure for them from the. Canto.n authontIes a copy of the Imperial tariff, and desired to be informed what arrangements were to be made for the carrying on of the trade at Canton after the co-hong had been formally abolished.l Thereupon Sir Henry Pottinger administered a tart and wel!- deserved rebuke, and the merchants thinking better of theIr unco.mplying attitude, carried out a partial investigation o~ the rates levied o.n so.me of the principal articles of trade, pomted out especially that, altho.ugh the regular Imperial export duty on tea was less than two taels per picul yet the total charges actually collected amounted to. six taels per picul, and put forward the suggestion that "if the Chinese authorities would prefer stating the amount which at the present estimate of the trade they consider should be collected as Imperial duty", the merchants "might without difficulty prepare a tariff dividing each duty on the several articles of trade."2 As an additional reason for their inability to provide further details they pointed out "that the invariable custom in Canton has been for the foreign merchants to purchase exports at prices including all duties and charges, and to sell imports at rates excluding such items." § 3. But the business of preparing "a fair and Preparation of regular tariff of export and import Customs and the tariff. Rates other dues" called for somethinO' more reliable adopted based . '''. on old 11llperial and more thoroughgomg than scrappy mforma￾tariff, not on tion and naive suggestions. That the merchants fixed five per d "ent ad valorem whose interests were those most at stake sho~l basis .• Analysis have proved unable, after several generatio.ns of of tarIff rates. . t.. trading, to. supply such mforma IOn IS an indication that so. long as profits were good there was no compelling necessity for them to acquire by hook or by crook full and clear details of the exorbitant Customs levies of which they complained. Pottinger had no doubts on this point. Writing to Lord Aberdeen on the unhelpful attitude of the British merchants he states ;-"1 new think there are some who.se co.nduct proceeds more from downright ignorance of the questions under discussion, and a consequent dread of expo.sing 1 Ch. Rep. Vol. XII; 1843; p. 42., 2 Ibid. Vol. XU i 1843; pp. 98-99. Merchants' Committee to Sir Henry Pottinger, 8th February, 1843: F.O. 17/66; enclo. No.2 in Jesp. No. 12. Pottinger to Aberdeen, 21st February, 1843