Robert Hart to Angell, November 8, 1880

Mr. Hart to Mr. Angell.

Dear Mr. Angell: In reply to your inquiry concerning special advantages allowed to the Chinese Merchants’ Company’s steamers, I have now to give you the result of my reference to the Tientsin customs. It is, in a word, this: The rule is still in existence and has never been rescinded, notwithstanding my belief that it has fallen into desuetude.

The rule stands thus: Chinese junks bringing government rice from the Yangtsze to Tientsin are allowed to carry a two-tenths cargo of native produce free of duty; that is to say, a junk may bring 200 bags of produce free of duty for every 800 bags of rice carried. Chinese steamers carrying government rice are to be dealt with similarly. It is only the custom-houses at Ningpo, Shanghai, and Chinkiang (starting point) and Tientsin (destination) that are to pass produce in this way, and the exemption applies solely to Chinese produce and not to foreign goods.

I do not think it likely an exemption of this kind creates any specially favorable condition for Chinese vessels as against foreign flags, seeing that it is limited to a few ports and a special cargo, while that cargo only comes forward at a special season, and the exemption of the two-tenths produce accompanying it is part of the payment of freight on the government eight-tenths rice. Owners of such produce have probably to pay the amount of the duty exempted to the steamer company, in addition to ordinary freight, and the arrangement appears to be a sort of guarantee to the rice carrier; that whether the government is in funds or not he, himself, can secure the payment of whatever freight (sometimes more, sometimes less, according to the nature of the produce) the duty exempted may be held to represent. A freighter would, therefore, find it as cheap to send his produce by another vessel.

Yours, &c.,