Chester Holcombe to Evarts, July 6, 1878

No. 97. Mr. Holcombe to Mr. Evarts.

Sir: I have the honor to inclose herewith, for your information, a copy of a dispatch addressed to Prince Kung by Mr. Seward, in October last, and the response of the prince, received some few weeks ago.

The subject of this correspondence was the issue of transit passes for native produce to be exported from the province of Szchuen, and it was caused by the refusal of the customs intendant at Hankow to continue the issue of such papers, since Ichang, which is an open port, is nearer to the province named. Mr. Seward requested that the former custom be adhered to, and the prince yielded a modified assent.

Mr. Seward, as you will see from his letters to Prince Kung and Mr. Consul Shepard, considered the proposed temporary arrangement to be satisfactory.

I have, &c.,

Prince Kung, chief secretary of state for foreign affairs, herewith makes a communication in reply:

I have had the honor to receive your excellency’s dispatch, of October 26 last, stating that an American merchant at Hankow desired to export from Chung King, in Szchuen, certain white wax, raw silk, and other articles; that the intendant at Hankow informed the consul that, as Ichang was an open port, the transit certificate must be issued by the Ichang intendant, and that that officer agreed to issue the certificate, but required that the transit dues be paid at Ichang. Upon this, your excellency observes that at the present time, there being no United States consul nor American merchants at Ichang, and no foreign vessels running between that port and Hankow, you feel bound to call my attention to the matter, &c.

This office forwarded a copy of your excellency’s letter to the northern and southern superintendents of foreign trade, and to the viceroy of Hupeh and Hunan, with instructions for a report upon the subject. I am now” in receipt of the earlier and later responses of these officers.

From the statements of the Ichang intendant and others, it appears that an English firm at Hankow has exported Szchuen produce from Ichang, paying the transit dues at Ichang, and, in the absence of steamers at that port, has sent the merchandise to Hankow for shipment. The exportation of local produce from Szchuen by the American firm of M A. Jenkins & Co., is, in its conditions, similar to the transactions of the English firm, and should be guided by the same rule.

If it be said that there is no United States consul at Ichang, Mr. Consul Shepard, of Hankow, has also jurisdiction at Ichang. If it be said that there are no American merchants at Ichang, and no steamers regularly running thither, British mercantile houses will be established at an early moment, steamers will be put upon the route, and American merchants will closely follow. Besides, in advance of the establishment of steamship lines, native boats may be hired to carry produce to Hankow for transshipment to steamers, all of which considerations have in view mercantile interests.

As it is held that in the absence of steamers and American merchants the payment of transit dues at Ichang is not convenient, a procedure may be allowed similar to the rules under which customs at Chin-Kiang collects duties on tea, for the Hankow customs Blank transit forms may be prepared by the Ichang intendant, and deposited with the customs at Hankow. Whenever a merchant provided with this form arrives at Ichang with native produce the Ichang customs will examine the goods as to quality, weight, &c., and affix upon the packages the stamp of the Ichang customs. The amount of regular and transit duties will also be determined, and a transit certificate given permitting the exporter to take his merchandise to Hankow, at which place the customs will collect the dues. For the time being, because there are no American merchants and no steamers at Ichang, this procedure will be quite satisfactory, but will be terminated when merchants establish themselves and steamers appear at Ichang.

Upon this report I beg leave to remark that the plan proposed by which the Ichang customs will issue transit passes in blank for merchants living at Hankow, and by which these merchants can pay the transit duties to the customs at Hankow for the Ichang customs, appears to meet entirely the convenience of the merchants concerned. I ought, therefore, to approve the temporary procedure proposed. I have accordingly addressed the northern and southern superintendents, of foreign trade and the viceroy of Hupeh and Hunan, instructing them in this sense, and beg leave thus to inform your excellency.

His Excellency George F. Seward, &c., &c., &c.,