Denny to Angell, October 25, 1880

Mr. Denny to Mr. Angell.

Sir: Referring to your dispatch No. 11, submitting interrogatories relating to the arrival at San Francisco of the Chinese steamer Hochung, I have the honor to submit the following:

• First. There are no other or higher tonnage dues exacted in the open ports of China from the vessels of the United States resorting thereto than are paid by Chinese vessels (not junks) or any foreign vessels engaged in like trade therewith.
• Tonnage dues on vessels are collected by the Imperial Maritime Customs, at the rate of 4 mace per ton of 40 cubic feet, if over 150 tons, and 1 mace per ton, if 150 tons or under.
• Second. American citizens pay the same import duties on all merchandise imported by them as are paid by the Chinese and subjects or citizens of all other powers, according to those specified in the tariff. No higher duties are exacted or paid by them.
• Third. There is no discriminating or additional customs duty imposed on American or other merchandise imported into China in American vessels, a uniform tariff exists for all nations.

The dues and duties levied by the native customs at the treaty and non-treaty ports upon junks and merchandise carried in them vary considerably. Their trade, however, is of a purely, native character, between coast and inland ports, and does not materially affect the interest of foreigners.

I informed the Department in a dispatch dated the 15th of May last of the intention of the China Merchant Steam Navigation Company to establish a line of steamers between China and San Francisco via Honolulu, and the Hochung is the first one of that line to arrive in United States waters. The Meifoo (Benclutha) a fine iron ship of 2,000 tons, just built at Shanghai, will be the next to follow. There are to be three in all, I believe.

While it is gratifying to see China step out of the narrow path she has trod in this direction for ages past, and modestly bid for a portion of the carrying trade between the United States and her own country, it is humiliating to Americans, with all their boasted enterprise on sea and land, to have Chinese steamers entering our harbors, while there is not a single steam merchant ship entering Chinese waters, flying the American colors.

Now, that the Chinese have concluded to enter upon this new departure, it is certainly an appropriate time to settle discriminations, if there be any.

In this connection I may add, that as tonnage dues collected from Chinese ships entering harbors of the United States will be, like others, expended in the improvement of her harbors and bars, so those paid by United States vessels entering Chinese harbors should be used for the same purpose, as originally intended by the treaties with China.

I am, &c.,