worthy to fill consular functions. It is much to be desired, for our own reputation, that Congress would institute a similar service for the American consulates, and raise up a body of men able to conduct intercourse with native officials in their own language.

I have the honor to be, sir, your obedient servant,

Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

S. WELLS WILLIAMS.

A.

Minutes of a meeting of the commission, May 4, to recapitulate the British demands. (This table of proposals was laid before the Chinese members in Chinese.)

I.-LIKIN TAXES AND INLAND TRANSPORT.

That no levy of taxes whatever may be permitted, whether upon foreign goods or Chinese produce forming a part of foreign export trade, within a radius of 30 li (10 miles) from the custom-house at each port opened by treaty.

To take into consideration whether sums received on account of transit dues might not be divided among the treasuries of the differeut provinces through which the goods may pass, with advantage, as tending to give the provincial authorities a direct interest in the increase of foreign trade.

II. TARIFF.

IMPORTS-HOUSEHOLD STORES AND SHIPS' STORES.

1. In addition to the second rule in the tariff, providing that household stores and ships' stores should not pay duty, it shall be allowed that all articles destined for foreigners' consumption exclusively, and not for sale to Chinese, shall be duty free. Under the head of ships' stores shall be classed all stores used in docks for the repair of foreign ships, and stones and machinery used exclusively in the dock establishments. The importation of these to be limited to dock companies under a license, and a sufficient bond not to lend their names, and not to import for sale to Chinese.

2. Foreign goods imported in Chinese junks shall be subject to the same duty as if imported in foreign vessels; and to effect this, such importations shall be placed under the supervision of the imperial maritime customs.

3. Guano and manure shall be free.

4. Foreign coal shall be free of duty.

5. Woolen and cotton goods shall be reduced to a standard of 24 per cent. ad valorem. 6. White pepper shall pay 4 mace, and black pepper 3 mace, per pecul.

7. Watches shall pay a duty of 5 per cent. ad valorem, as clocks now do.

8. Tin plates to pay 2 mace per pecul.

9. A conference shall be held at Shanghai between her Majesty's council, assisted by the Chamber of Commerce and the commissioner of customs, to arrange an equitable tariff of timber duties on a basis of 5 per cent. ad valorem.

10. Foreign salt shall be allowed to be imported under special provisions, to secure the Chinese government from loss by the competition with native produce.

EXPORTS.

11. Foreign grain landed and stored shall be re-exported free of duty.

12. Tea shall pay 5 per cent. ad valorem.

13. The duty on native coal shall be reduced.

14. Coal shall be exempt from coast trade duty.

III.-PAYMENT OF CUSTOM DUES.

1. At each port the amount to be paid as customs duties in the currency of the place, as compared with the established standard, shall be fixed.

2. Government assayers shall be appointed, to assimilate the currency of the open ports.

3. Drawbacks for duty on goods re-exported shall be made payable in silver on presentation at the government banks.

4. No limitation shall be placed upon the time during which duty will be returned upon re-exported goods.

IV. FACILITIES OF TRANSPORT, ETC.

1. British merchants shall have a recognized right to have unimpeded access, and carry their own articles of commerce, whether foreign goods or Chinese produce, in which they have a bona fide interest in their own vessels, whether propelled by oars, sails, or steam, through the interior, to and from specified marts and producing districts, under customs regulations and permits to be agreed upon between her Majesty's minister and the Foreign Office.

2. The places and districts to which access is required shall be specified; three points have been already mentioned-the Yaugtsze river above Hankau, the Poyang lake, and the North, East, and South rivers of Canton.

3. British merchants availing themselves of this right of navigation shall be permitted to own warehouses at points where the convenience of their own commerce may require them; and for this purpose a license shall be given by the consul at the nearest treaty port, who shall exercise due circumspection in the issue of such license, and have the power to cancel it.

4. Such foreign employés as may be required for the supervision of these houses shall be permited to reside in them, and suffer no molestation from officials or people.

5. To prevent possible inconvenience from the operation of the exterritorial clause, there shall be a consular agent at certain central points, to be hereafter determined; and whatever his nationality, he will be empowered, by the concurrence of all the treaty powers, to take cognizance of all misconduct or infringement of treaty on the part of foreigners.

V.-LANDING-STAGES-NEW PORTS.

1. Landing-stages for goods, produce, and passengers, shall be permitted at the following places on the Yangtsze river, between Wusung and Hankow, viz: 1. Hwang-Chau; 2. Wu-such; 3. Tung-lin; 4. Ngan-king; 5. Ta-tung; 6. Wu-hu; 7. I-ching; 8. Kiangyin; 9. Wu-sung, besides the open ports of Kinkiang, Nanking, and Chinkiang. The use of these stages shall be accorded to British vessels under license and regulations hereafter to be settled by the British minister and Foreign Office in concert.

2. The port of Wan-chow shall be regularly opened to foreign trade, but no demand shall be made for separate foreign concession or settlement, and it is rather to be regarded as a port of call for foreign shipping, where they may take in or discharge cargo.

VI.-BONDED WAREHOUSES.

A system of bonded warehouses shall be established at the open ports, either by govment warehouses, or permission to merchants to bond goods in their own godowns, whenever a majority of two-thirds of the mercantile community shall represent such an arrangement to be desirable.

VII.-COAL MINES TO BE WORKED.

It is important to provide for the large number of steamers running on the coast a sufficient and cheap supply of coal. This can only be done by opening native sources; and therefore (referring to a previous dispatch of Sir R. Alcock) the following proposal is added: Permission shall be given by the Chinese government and high provincial authorities to foreigners to work certain specified coal mines by foreign machinery and agencies under regulations.

VIII.-MONOPOLIES.

All monopolies being strictly interdicted by treaty, it is deemed unnecessary to make any further provision on this head. But as certain monopolies have been persevered in to the great injury of foreign trade, and entailing pecuniary loss on merchants individually, notably in the article of camphor at Tamseng, of rice at Taiwan, and (there is reason to believe) of iron at Amoy, the British minister deems it advisable that all such attempts at monopoly should be put down and formally prohibited, either by offi cial injunctions upon the high provincial authorities or by imperial edict; and that these three should be more especially denounced.

Further, as this will not indemnify merchants who have actually suffered by such breach of treaty stipulations, that indemnity should be paid, where any clearly avouched loss can be established, in like manner as means of exaction and squeezes, whether by the illegal levy of transit dues or li kin taxes on foreign goods at the ports.

B No. 1.

Reply of the Foreign Office to proposals for revision of treaty.

On the 2d of January the Foreign Office received your excellency's memorandum containing five clauses for a revision of treaty, and on the 4th of May a memorandum containing 29 clauses of a like import. The prince has carefully considered both these documents. The expression of sympathy with China therein contained are gratefully acknowledged as evidence of your excellency's friendly feelings, and of your generous interest in our affairs. Mr. Burlingame's mission to the friendly foreign states last year will certainly bring about a mutual understanding and increase those friendly feelings.

Now, with regard to the war taxes, the fundamental revenue of China is the land tax; the system of popular loans is unknown. In time of war his Majesty has, out of compassion for the sufferings of his people, remitted the land tax wholly or partly in the disturbed districts; and as a temporary measure the national necessities must be supplied by these extraordinary levies. Even now military operations are not ended, and funds are still much required. Indeed, the apprehension that the people will not be able to bear their burden is a source of constant anxiety to the government. As peace returns and order is restored, their taxes will surely be reduced or entirely removed. Besides, the foreign merchants, relieved of all taxes on their inland trade by the payment of a full and half duty, have the advantage of the native merchants, on whom these war taxes have been levied in full.

It may be true, as your excellency states, that British merchants have sustained heavy losses during the past two years, but the increased number of ports has increased the foreign merchant's trade expenses, while competition has tended to restrict his business. The reckless competition of so many foreign merchants must inevitably diminish the profits of trade. The prince thinks that your excellency's experience in China will have shown this.

With regard to the complaints of the foreign merchants of inland exactions, the proclamation which your excellency has approved, and which is about to be issued at all the barriers, will remove that evil. Previous complaints may have arisen from the merchants having allowed this produce to be separated from their transit papers, as well as from an actual illegal levy, but authentic cases shall be settled on their individual merits.

Ever since the opening of the Yangtsze river the native trade there has declined, and in November of last year Tsang Kwohfan presented a petition from the native merchants begging, as remedial measures, for the withdrawal of the right to navigate it and to carry on inland traffic. These statements seemed to the prince reliable and worthy of attention, but in view of the difficulty your excellency would have of dealing with their request, though pitying the decadence of their commerce. These feelings I trust your excellency will also appreciate. If mutual advantage is to result from the present revision, consideration must be shown to the native merchants as well as to favor the foreigner.

The five points of the memorandum as contained in the 29 clauses have been repeatedly discussed by our commissioners and Messrs. Fraser and Adkins, and are now replied to seriatim.

1. Repayment in full of exactions on foreign trade in the mterior.

A proclamation will be issued from this office requiring the authorities at the barriers to act in accordance with treaty, thus avoiding illegal levies in future. Previous claims will be treated as they are found to be acts of extortion by officials, or the result of the separation of the goods from their transit papers.

2. No levy of likin to be made on produce for export, or on foreign imported goods, within a radius of 30 li, to be measured from the custom-house at each port.

The war expenses of foreign countries are met by loans negotiated with the merchants. Having no such resource, China is compelled to resort to the likin. The import comes on the native, and not on the foreigner. Endless confusions and evasions would result from the adoption of this suggestion to do away with the likin within 30 li, (10 miles.) The military supplies, too, would be interfered with. After all, this is a matter for the consideration of China herself. With the disbanding of her armies and restoration of tranquillity alterations may be made in her fiscal arrangements, and out of consideration for the merchants the li-kin will be abolished.

3. That the inland transit dues leviable by treaty be divided among the treasuries of the provinces through which the goods pass with advantage, as tending to give the provincial authorities an interest in encouraging trade.

These dues as levied by treaty are applied by China for military purposes, or are remitted to the treasury, as the case may be. How, then, can the several provinces help themselves? As to fostering commerce, if the foreign merchant has proper papers, he may pass through many provinces and be protected in all alike. No official will dare to make any distinction, no matter whether any duties had been paid within his particular

jurisdiction or not. The Foreign Office are issuing a stringent proclamation on this point, about which there need be no further anxiety.

4. In addition to ships' stores and household stores, declared to be free by rule II of the tariff, goods imported for foreign consumption, and not for sale to the Chinese, to be duty free.

The intention of this rule in the tariff was to admit such articles for personal use duty free, but to impose a duty on those intended for sale. A list of articles so required for personal use will be drawn up, and regulations issued, to avoid confusion.

5 and 6. Under the head of ships' stores come all stores used in dock for repairing foreign ships, and stores and machinery used in docks, to be imported only by dock companies established under license, and guaranteed for use of dock, not for sale. The opening of a miscellaneous store to be also under license.

As a dock is a trading establishment, it is considered that, except ships' stores and machinery used in repairing ships, all materials used for building new vessels should pay a duty of five per cent. on the value of the vessel constructed. The necessary securities and regulations to be made permanent after three years, if satisfactory. 7. Manure and guano to be imported free.

Free, the discharge being under permit.

8. Foreign coal to be free.

Free under permit.

9. Duties on cotton and woolen goods to be reduced to two and one-half per cent. ad valorem.

There are many varieties of these goods; their several values can be estimated with a view to a reduction of duty.

10. Watches, like clocks, to pay five per cent. ad valorem.

A reduction of duty to this amount can be granted.

11. Tin plates to be reduced to two and one-half per pecul.

Reduction in accordance.

12. Timber to pay ad valorem five per cent.; the valuation to be made by the consul, commissioner of customs, and Chamber of Commerce at Shanghai.

Tariff rate can be reduced, but not to reckon ad valorem.

13. White pepper, four mace; black pepper, two mace.

14. Foreign grain to be re-exported free. [Conceded under permit.] Foreign salt to be imported under such rules as would prevent injury to the salt revenue.

The regulations in force in Kiangsu and Chehkiang are suggested as available. The salt tariff is wholly imperial, and is a matter under special government control. The traffic in salt is not an ordinary one; not even the highest officers in the state can engage in it at their pleasure; much less can the merchants take upon themselves to do so. This item cannot be admitted,

15. Tea to pay an ad valorem duty of five per cent.

The Foreign Office contemplates an increase of duty on tea. A separate list is made of the articles on which an increased duty is contemplated.

16. Duty on native coal to be reduced.

17. Coast-trade duty to be abolished.

18, 19. Currency to be assimilated to the Canton standard, and assays made at the ports to that end.

Shall be done.

20. Drawbacks to be made payable in cash.

The payment of drawbacks in cash will confuse the accounts, and will be troublesome from the fluctuations in the value of specie; but if this is absolutely necessary, the limit of the drawback will be only three months.

21. British merchants shall have the right to have unimpeded access, and carry their articles of commerce, whether foreign goods or Chinese produce-their own propertyin their own vessels, whether propelled by sails or steam, through the interior, from specified marts and producing districts, under customs passes (Canton,) and regulations to be agreed upon between her Majesty's minister and the Foreign Office. (The places and districts to which access is required shall be specified; three points are now indicated, viz: the Yangtsze above Hankow, the Poyang lake, the waters above Canton.) The places named are on the inner waters, whither foreigners can proceed under proper customs passes. The use of steamers is inadmissible. The coast and (Yangtsze) river trade is already in the hands of foreigners; with steamers on the inland rivers. and lakes, they would usurp the entire trade of the empire. Such preference given to the foreigner over the native would not be fair. The latter have no steamers running on the inner waters, and the foreigner availing himself of the inland traffic must use the native means thereto.

22. Inland residence at marts and en route.

Such foreign employé's warehouse can be built at the open ports. Such establishments in the interior would injure native commerce, and both parties would have trouble, from the necessity of surveillance in an extensive and thickly populated

country.

23. Jurisdiction of a foreign official was not discussed.

24. Opening of places above Wusung as landing stages.

It is not advisable, perhaps, to establish jetties on the river in addition to the four ports of Chinkiang, Nanking, Kinkiang, and Hankow. In the year 1862 Sir Frederick Bruce was anxious for liberty to trade temporarily at Ta-tung, Wuhu, and Nanking; but the matter was dropped, as Sir F. Bruce could not entertain some transit duty arrangements proposed in Hupeh. The present requisition for landing places may be met by the establishment of custom-houses for the levy of duty at these three places. But as the necessary funds will not be forthcoming, for the duties collected will probably not suffice to pay the expenses, it will be necessary to consider maturely as to the mutual advantages of the measure.

25. A port to be opened on the coast-Wanchow.

Yes; in exchange for Kiungchow, which has never been used.

26. Bonded warehouses where desired by a majority of merchants.

Where a majority of merchants are willing, the superintendent of customs and the commissioner can establish official bonded warehouses, under regulations.

27. On account of the large consumption of coal, it is advisable to allow foreigners to work native coal mines with foreign appliances; the mines in Wan-ping-hien are indicated. [The coal districts of China are her own estate; the working of these, whether with or without foreign aids or appliances, must be left to the minister of the southern ports, who will act as local circumstances require; he will have regard to the sovereign power of China and to the requirements of trade.]

28. Monopolies of camphor and rice.

Camphor wood is used in the government works, and has hitherto been considered to be government property. The camphor trade is not an ordinary menopoly. The merchant shall be at full liberty to purchase what he requires, without official interference; but to avoid trouble, the foreigner must not go among the savages to get the camphor for himself.

The liberty to export rice depends on the abundance or scarcity of the season. In a time of scarcity the prohibition to export will fairly lie on native and foreigner alike; it will not be specially directed at the foreigner.

29. International commercial code.

The establishment of such a code would be very advantageons, and the minister's superintendent shall depute some properly experienced officer to confer with the chief judge on the matter.

B No. 2.

The 29 articles laid before the commission by Mr. Fraser have been carefully consid ered by the prince and his colleagues. Certain articles were found to be inadmissible, but everything which was not detrimental to the sovereign power of China, while it was advantageous to the foreign merchant, has been conceded; of this a detailed statement, with remarks, has been already submitted to your excellency.

The prince has received various representations from superintendents of customs and from the mercantile communities, embodying numerous demands on your excellency; but, lest you should have difficulty in dealing with them, they have not been mooted, and a reply is requested on the points already conceded.

In the reduction of duties or abolition of them, and in putting a stop to inland exactions by proclamation, China has dealt liberally by the men from afar. The merchants (on their part) must not pervert this consideration for their commerce into a means of injuring the revenue.

In the proclamation just issued, lest the foreign merchant should suffer by being wrongfully taxed, a broad distinction has been made between him and the native trader. It would be to the advantage of both parties, and save much future confusion, if the merchants themselves would observe such distinctions. For instance, when a native craft runs under a foreign flag, there is no means of ascertaining whether she is really under a foreign charter and with a flag issued by the consul, or whether a native merchant, in fraudulent collusion with a foreigner, has obtained the flag to enable him to smuggle the more easily. Then, Chinese-owned cargoes, leaving or entering port in foreign ships, assume a quasi foreign character, and as such pay duty according to a lower tariff scale.

These two grievances, by which a foreigner gains no advantage while our revenue suffers, arise from the want of a marked distinction between the foreigner and native. It is now suggested that your excellency instruct the merchants that in future the consular papers of a native craft chartered by a foreign merchant must bear the seal of the superintendent of customs before the charter can be effected, and that the want of such papers and seal renders vessel and cargo liable to confiscation; also that Chinese consignees themselves shall report at the customs and pay the duties on goods coming to them in foreign ships, without being backed by the foreigner; non-compliance to subject the Chinese to a penalty of a double duty and the foreigner to be fined by his con