James Burrill Angell to Walker Blaine, September 24, 1881

No. 180. Mr. Angell to Mr. Blaine.

Sir: It will be remembered by the Department that Sir Thomas Wade has been charged by the diplomatic body here with the conduct of the negotiations in their behalf with the Tsung-li Yamên concerning a proposed substitution of an addition to the present import duty in place of the lekin taxes, to which goods carried into the interior are now subjected.

I have the honor to forward to you herewith copies of a communication from the British minister to the Tsung-li Yamên and their reply. I received the papers September 7; since that time no further progress has been made.

You will observe that the British minister, by the instruction of his colleagues, pressed the foreign office with the inquiry how far they were prepared to go, in really securing the emancipation of foreign goods from the lekin burdens, provided an import duty of 10 per cent, was paid in lieu of the 5 per cent, now levied, and informed them that he and his colleagues could not recommend the adoption of this change to their respective governments, unless certain other provisions asked in their collective note of November, 1879, were conceded.

The Tsung-li Yamên express their readiness to abide by the proposition to accept 10 per cent, import duty and abolish the lekin, but owing to the demand for certain other regulations, defer action for the present.

It has been a tedious and difficult task to bring them to accept a proposition for a 10 per cent, duty in lieu of the present duty and lekin. There is every reason why they should prefer some such change as that suggested, because the import duties collected by the so-called foreign customs all go to the imperial treasury, while the lekin taxes go to the provincial officers. But they have feared that the provincial authorities would not endure the change.

The diplomatic representatives are, without exception, I think, of the opinion that, if certain safeguards can be secured, it is worth the while to try, as an experiment, say for five years, the scheme proposed. But all deem it necessary to have some sort of court of reclamation, in which redress can be gained if lekin is really assessed. Yet, it must be confessed, that it is very doubtful whether, for some time to come, the government can prevent the levying of lekin. The people hate the tax, and would gladly be rid of it. But it is extremely convenient for the local authorities, and the whole weight of the influence of the provincial officials will be thrown in favor of the continuance of it. The temptation for them to collect it in violation of any engagements made by the imperial government will be great—perhaps, in many cases, irresistible. But the lekin assessment now loads foreign goods circulating in the interior with so grevious burdens, and at a certain distance from the ports, in so many cases, becomes prohibitory in effect, that the representatives of the nations which trade with China agree in the belief that some such arrangement as that now under consideration had best be tried for a limited period.

Still, the negotiations have not proceeded far enough to justify any prediction as to the time of their completion.

I have, &c.,