Ministers of the Yamên to Frederick F. Low, June 21, 1872

Ministers of the Yamên to Mr. Low.

Your excellency is aware that some time ago the tsungli yamên sent instructions to the superintendent of trade and the inspector-general of customs to investigate and decide, in concert with the taotai of Shanghai, the claim against the China and Japan Trading Company growing out of the importation and transshipment of eighty-four cases of shell.

On the 15th instant we received a communication from the superintendent of trade in which his excellency states that Mr. Hart, after his arrival at Shanghai, wrote on the 27th April to Taotai Shên to inform him that the object of the importation of shell by the aforementioned company had actually been to transship these goods for conveyance to Japan; permission ought, therefore, to be given to send them on, and the bond issued by claimants should be cancelled; but this case having been settled, no further importation of munitions of war ought to be allowed.

Mr. Commissioner Dick issued his first notification on the 30th July, 1871, thinking that it would come to the knowledge of everybody near and far. It seems advisable, however, that Mr. Dick should now publish another notice to the effect that munitions of war, arriving from foreign ports at Shanghai, will, after having been duly reported to the customs, either be sent off again in the same vessel, or allowed to be transshipped for re-exportation, but all on condition that the vessel has sailed from the foreign port before the 7th May, 1872. If, however, munitions of war should arrive within the limits of the port of Shanghai in any vessel which left home after the before-mentioned date, such goods will neither be allowed to leave again in the same vessel nor to be transshipped and re-exported, but will be regarded as contraband and forthwith seized and confiscated by the customs. Thus a uniform rule will be established, and the merchants will understand that a violation of the rules takes place as soon as a vessel with munitions of war on board enters the limits of the port, though no landing of these goods be effected; and they will further understand that the transshipment of munitions of war being interdicted, it is of no use to import these articles with a view of shifting them from one vessel to another.

These propositions of the inspector-general were communicated to Mr. Dick by Shên, taotai, and a definite course of action will be decided upon as soon as Mr. Hart, who left for Kuangtung on the 4th May, shall have returned.

The tsung li yamên beg to add the following remarks:

Rule 3 of the treaty distinctly prohibits the export and import of contraband goods, and although transshipping such goods is different from selling them, the fact is they have been transported to the place, and not less a fact that they have been imported and exported.

Even granting that nothing but the simple transshipment takes place, and no fraudulent action be intended or perpetrated, yet such action constitutes, properly speaking, a violation of the treaty prohibition.

Now, as regards the claim of the China and Japan Trading Company, the inspector-general has ascertained that nothing but the transshipment of the goods in question was intended, and that otherwise no irregularity was connected with the affair; we shall, therefore, in this case follow an exceptional course of forbearance and release the goods without a fine, as well as allow the bond given by the company and deposited with the customs to be cancelled. To effect, however, an efficient arrangement it will be necessary to hereafter set distinct bounds with regard to the importation of the forbidden article, and to draw up a special and severe rule based on the treaty regulations. The inspector-general’s proposition, to let the commissioner of customs issue a notification informing the merchants that the 7th of May is the limit by which it will be decided whether munitions of war are to be released or confiscated, is not only distinct, comprehensible, and easy to apply, but it also prevents the merchants from committing errors at the outset, and thus subjecting their goods to seizure and subsequent embarrassment. While insisting upon this prohibition, founded on treaty rules, we at the same time show our willingness to make allowance for the merchants.

We have sent a reply to his excellency the superintendent of trade, who will instruct the taotai that as soon as the inspector-general shall have returned from Kuang-tung to Shanghai he is to meet him and they are to effect the publication of the proposed decree.

We request your excellency likewise to give notice of this arrangement to your consul.

The date mentioned, however, being already past, the inspector-general will, after his return to Shanghai, again have to decide in concert with the taotai what other month shall be fixed as the term by which the proceedings in cases of importation are to be regulated. As soon as their decision shall have been reported to us, we shall not fail to apprise your excellency of its purport. In the meantime we avail ourselves of this opportunity, &c.