Rutherford Alcock to To his Excellency A. Vlakgaly, September 10, 1868

I.

Monsieur le Ministre and Cher Doyen: The Prussian minister, in his reply to my former communication respecting the negotiations in which I am engaged with the Foreign Office, in anticipation of a revision of the commercial articles and tariff of the treaty of Tientsin, expressed a regret that he had no cognizance of the three memoranda to which the ministers made reference in the note I forwarded to you for the information of my colleagues. I beg, therefore, to inclose the memoranda in question for communication to the foreign representatives.

I have sent a collective reply to them, with a separate memorandum on the general revision of the tariff, stating my reasons for concluding the present time to be inopportune, and proposing to defer all further consideration of the subject. In my general reply I have availed myself of the frank expression of opinion of my colleagues as to the proposed modifications in the commercial rules, &c., to point out to the prince and ministers the unanimous feeling of regret and dissatisfaction at the restrictions attached to navigation of the inland waters, residence in the interior, and the working of mines; these otherwise large concessions being deprived of much of their value by limitations calculated to render them practically useless. This joint remonstrance may possibly induce the yamun to reconsider the subject, and in some degree modify their views as the expediency of a less restrictive policy. In any case I feel assured that you and colleagues will approve of my having communicated our common sentiments on the subject.

The Baron de Rehfues will see that I entirely concur with him in deprecating at this moment any general readjustment of the tariff, and have never contemplated proposing it. As to the right of revision reserved by the French and Prussian treaties at later periods, I do not conceive that any concurrence in the partial revision which may follow, of the British treaty, can be rightly construed as prejudicing their independent action when their respective periods for revision may arrive. But my colleagues will take such steps, of course, as they may deem expedient to prevent misapprehension in such a matter. I have only sought their co-operation because any changes, either in the commercial rules or tariff of one treaty, react on all; and in some cases, as in the proposed compulsory payment of the transit due of two and one-half per cent. upon all imports of foreign goods, and their collection by the maritime customs in the manner of other tariff duties, can only be carried out as a general measure and by common consent. And as the object is to strike at the root of all irresponsible powers of taxation upon foreign trade, and to take from the local authorities all pretext for levying the li kin or any other tax upon foreign trade, such transit duty once paid, and thus remove the greatest grievance of the merchant, and the worst obstruction to the extension of trade in the interior, I conceive this would be cheaply purchased even by an addition of two and one-half per cent. to the import duties.

Such, however, is not the effect of the proposed arrangement; for as much the greater part of foreign imports are sold to proceed into the interior, they necessarily have to pay the two and one-half per cent. transit due, or to run the gauntlet of a hundred barriers with unlimited powers of exaction and taxation. Even for the small fraction sold for consumption at the ports, the foreign merchant has everything to gain, if by payment of the transit due of two and one-half per cent. he can secure their exemption from the li kin and other local taxes which have been persistently imposed upon the native purchasers even within the limits of the port to a large extent.

You and some of my other colleagues have expressed great doubts as to the efficacy of any arrangements to put down these illegal and wholly uncontrolled taxes. Nor can any one feel perfectly assured of the result until tested by experience. Yet it is much to have obtained a distinct renunciation of the right, hitherto obstinately maintained, of taxing all trade within the Chinese territories for state purposes, and a declaration that under no circumstances can any overcharge beyond the tariff be levied on foreign trade in exports or imports, without imperial authority and the previous sanction of the foreign representatives. Whatever difficulty may be experienced at first in giving practical effect to these fundamental principles, their publication by imperial edict will strike at the root of the present abuse of taxing power in the hands of irresponsible and provincial authorities; and I cannot doubt be productive of far greater benefit to trade than many more imposing-looking concessions—than any rights of residence of foreigners, or their navigation in the interior, or working of mines—for which, in my opinion, neither foreign merchants nor the Chinese people are yet prepared, in their ignorance of each other’s language and the unsettled state of the country, to turn to much present advantage.

I avail myself of the present opportunity to assure your excellency of my highest consideration and respect.