causes much time to be lost by the sailing convoys. It would at least be necessary that the use there of small steam-tugs should be authorized.

I also consider as very meager and very timid the terms used by the yamun to open the foreigners access to the coal mines. "The employ of foreign material will be permitted, and the presence of foreigners for the exploitation of the coal mines." Could it not have said clearly: "The government authorizes foreigners to exploit coal mines, using their own material," and to make the establishments necessary for this purpose? The right of temporary residence in the interior is not a concession. We already possess it; at least, according to the terms of the French treaty, there is no doubt about it. But as no use has been made of the privilege up to the present time, it is not a bad idea that an imperial decree should render public this right. The only limitation to it which we could admit, in my opinion, is that of owning real estate in full proprietorship; the privilege of having houses and stores, and of residing in them, ought to be complete.

With the reserve made in these observations, I ask nothing better than to recommend to the cabinet at Paris in their totality the propositions which you have received from the yamun, and it is probable that if they satisfy the (English) Foreign Office there will be no greater difficulty at Paris than at London. I do not think, however, that we shall be disposed to renounce expressly and beforehand the right of revising our treaty in 1870; it does not appear to me that it would be for the common interest that we should do so. There are besides, in the treaty, one or two clauses relating to the liberty and security of missionaries and Christians, which are not explicit enough, and which have not had the effect we contemplated.

I should be of opinion, if my advice were asked, that these clauses should be revised; but they relate only to France, and do not affect the condition of other nations which have treaties with China.

*

With a thousand kindly compliments,

*

A. DE LALLEMAND.

F.

Mr. Williams to Sir Rutherford Alcock.

PEKING, August 13, 1868.

MY DEAR COLLEAGUE: I have carefully looked over the papers which you gave me relating to the revision of the British treaty, and desire to express my gratification at the encouraging evidences they exhibit of progress on the part of the Chinese in understanding their political and commercial relations with other nations. The different position of things between Great Britain and China, under which the present discussions have been carried on, and those attending the two former treaties of 1842 and 1858, forms of itself one of the most marked evidences of beneficial progress in this part of the world.

The two noteworthy points in this précis relate to the establishment of the mixed court, and to the regulation of the li kin and other unauthorized taxes on the tradepoints which, if once well established, will gradually work out most desirable results. The mixed court will become a school of instructive practice to the native officials connected with it, and I should think serve even as the beginning of a reform in the jurisprudence of the country; and we both know that that means to change judicial wrong and torture into just and legal punishment, directed by officials acquainted with their duties. It is a great step to get the Foreign Office to initiate such a court, even though its slow progress be attended with many drawbacks, and I shall most earnestly support its establishment.

It will be of lasting service to the trade if you can induce this government to subject such capricious levies as the li kin taxes to some well-understood control. In a country where an income tax is impossible and an excise tax is vexations, and the duty on imports and exports fixed by a treaty, the rulers may, perhaps, be excused for increasing their uncertain_revenue by imposing transit and other charges on produce and cargoes as they can; but if they can be only brought to see the advantages of a legal well-known rate of charges, by seeing that they produce more revenue with less irritation, the advance will be great. I think that your proposition to have all these uncertain charges brought under the cognizance of authorized accountable officers has everything to recommend it as a practicable solution of the present grievances. I am afraid that it may fail of doing even what we reasonably look for, but it is much to have the new plan agreed to and tried.

In regard to alterations in the tariff, (whose revision comes within your plan,) it will perhaps be advisable to restrict them to bringing every article under a uniform rule of five per cent. ad valorem on all imports and exports. The list of free might be made more precise with advantage, so as to avoid in future some disputes which have already

arisen as to the kind of articles included under such general terms as ships' stores and household stores.

The 10 points specified in your minute include some of considerable importance, and I agree with most of them as beneficial and practicable. I am afraid that all rules will be inoperative in respect to the fourth rule, however, as long as the money of China is of account, and no currency in the proper sense of the word is issued by government. I do not believe any rules can regulate the purity of sycee; for when the Chinese are able to maintain a gold and silver currency, then only will their bullion conform to it. From the nature of the case, all efforts to regulate its supply, quality, or exchange will, I fear, fail.

The opening of new ports involves so many other points than merely finding new marts for trade, that we hesitate, especially when it is seen that of the old ones Kwing-Chan, in Hainan, has not been occupied, and others have disappointed their promise. To the three proposed stopping places on the Yangtse, I would add Kwnchau, or a convenient place opposite Chinkiang, unless this port can be extended so as to include a landing place on the northern bank of the river, within its own jurisdiction. Then, too, the port of Kinkiang might be extended to include Hukan, at the mouth of the Poyang lake, for the strong current prevents native boats from getting up to Kinkiang, about 18 miles distance. This disability is so great, and causes so much delay at the entrance of the lake waiting for a fair wind, that many of them take a circuitous inland route in preference. But on this last point I suppose a joint commission could get all the information in good time respecting all the ports to be used as stopping places along the river, and their report would furnish reliable data.

The minute furnished you from the Foreign Office respecting the modifications which its members can see their way clear to adopt in the treaty, does them much credit in its spirit and argument, and is another evidence of progress and assimilation of ideas. While we are urging our privileges, they claim that native merchants should not be, in their own country, placed on a worse footing than foreigners-a most reasonable demand.

In fine, my dear Sir Rutherford, I congratulate you on the progress made, as shown in the result of your discussions upon the proposed alterations in the British treaty. It is a victory of peace, and perhaps more permanent than one of another kind. The points which the Chinese have refused are those on which they feel that neither they nor their subjects are yet ready; but these, and still greater changes, will, I hope, be introduced among them, in the same peaceful manner, as they are prepared to receive others by the natural, gradual results of the causes now going on. In effecting this, however, harmony of action among those engaged in the work is exceedingly desirable. Very respectfully, your obedient servant,

Sir RUTHERFORD ALCOCK, K. C. B., &'c., &c., &c.

S. WELLS WILLIAMS.

G.
[Translation.]

TA-CHIAO-SZE, August 18, 1868.

MY DEAR COLLEAGUE AND DEAN: In sending you the adjoined documents, in which Sir R. Alcock has communicated to us the result of his negotiations with the Chinese government respecting the revision of the treaty of Tientsin, I hasten to give you an account of the impression which their persual has caused me, as our colleague from Great Britain has desired I should do.

But before entering upon the examination of the different questions which here occur, I ought first to recall to you that in the treaty concluded in 1861 between Prussia and the other German states on one side, and China on the other side, a period of 10 entire years from the day of the ratification was stipulated for the revision of the treaty, so that the states interested are not called upon to demand any changes whatever, either in the tariff or in the commercial regulations in general, until the expiration of this period of 10 years, i. e., in 1872. In taking, then, an active part in the negotiations between Great Britain and China concerning the revision of the treaty of Tientsin, the German states cannot and ought not to renounce their right of demanding in their turn, in 1872, the changes which they shall judge expedient to solicit. Much the less ought they, in my opinion, to renounce that privilege, since that year bids fair to be more favorable than the present moment for obtaining important concessions, in consequence of the changes which will then have taken place in the highest spheres of government, as well as in the spirit and the sentiments of the people. This very natural reservation will, I am convinced, be also made by the other governments which have made treaties with China, and I might perhaps have omitted to touch upon this. point if the concluding passage of the Chinese memorial, in the following terms, “We

ought to communicate with the other representatives of foreign countries in Peking, in order that the arrangement concluded between us may have a general effect," did not afford reason for supposing that in the opinion of the Chinese ministers an adhesion on the part of other governments to the present arrangements between China and Great Britain would necessarily imply, on their part, a renunciation of any eventual revision at the period fixed upon by the different treaties. If such were the intention of the yamun, it would be an unacceptable condition, and the other governments would not, in that case, have any other alternative than to demand simply, by virtue of the clause of the most favored nation, all the advantages now obtained by Great Britain, and to await the period fixed for the revision of their respective treaties. In such a case, I should consider it a duty not to leave the Chinese government in any doubt in this respect.

Aside from this limitation, I am of the opinion that the interests of all the foreign governments in regard to China are identical, and that they owe to each other mutual assistance in all cases in which an effort may be made, either to obtain new concessions of general interest, or the redress of just grievances on the part of all the governments, or of one of them. In this connection, I think that all the governments are interested in the revision of the treaty of Tientsin, which is, so to speak, the foster-father of all the other treaties, and that they ought to sustain, as towards the yamun, all the reclamations of a general interest which the representative of her Britannic Majesty is now advancing with a view to the revision of the treaty of Tientsin. I am thus entirely ready to act in this spirit whenever I may be called upon to do so, feeling certain beforehand of meeting in this way the approbation of my government.

As to what relates to the different questions which have been discussed in the mixed commission, and to which Sir Rutherford alludes in his letter, I must avow, to my great regret, that I have not advanced as far as I should desire to have done before giving an opinion on the subject, with reasons therefor. I could wish to be cognizant of the negotiations which have taken place respecting some of these questions, especially those which concern the tariff and the proposition to double the duties on tea and silk; and the communication of the three memoirs of which the yamun's last memoir makes mention would, perhaps, be very useful, in order to judge of the opportuneness and the possibility of these important changes in the tariff.

If I have fully comprehended the spirit of the negotiations which have taken place upon the revision of the treaty of Tientsin, the representative of Great Britain would seem to have taken, as his point of departure, a conviction that the treaty in itself is good, and does not demand any alteration in its principal stipulations, which are in harmony with the actual state of China, but that it is chiefly the strict execution of the treaty which has hitherto been wanting, and which it is necessary to assure for the future. It is in this point of view that the interests of all the powers are a unit, since they all equally suffer obstacles regarding these stipulations with which the ill-will and the rapacity of the Chinese administration has succeeded in surrounding all commercial transactions between foreigners and natives, notwithstanding the clear stipulations of the treaties. But nothing, in my opinion, has more contributed to denaturalize the commercial relations of China with foreign countries, than this system of arbitrary taxation, which, under the names of likin, taxes of war, transit duties, and others, have long weighed upon all foreign merchandise-and even upon native merchandise-when it passes from hand to hand, and I cannot but applaud the determination to make these abuses cease by virtue of a revision of the treaty of Tientsin. As far as I am now able to judge, the proposals made for this purpose seem to me well conceived, and they offer perhaps the only means of remedying the abuses mentioned. In general, the principle of placing natives and foreigners upon the same footing seems to me founded in justice. It offers, besides, the advantage of terminating the animosity produced between the two parties in consequence of their difference of position and the inequality of the burdens weighing upon them. We cannot, however, refuse to take into consideration the fact that the foreign merchants will lose some advantages under the new order of things, and that they will be obliged to purchase the execution of a right guaranteed by treaties, by the payment of a transit duty of two and a half per cent. on all imported goods. The result will depend exclusively upon the spirit with which the central government and the local authorities undertake the execution of the new measures, and I do not see any other guarantee against the renewal of infractions of the treaties than the good-will-at the least, doubtful-of the local authorities.

As to the proposal to replace all the provisions of the tariff, except tea and silk, by a duty of five per cent. ad valorem, I cannot now pronounce an opinion, and I must reserve upon this subject the opinion of my government. To double the duty upon tea and silk, almost the only articles of exportation which China affords, seems to me a measure which certainly would produce serious reclamations from the Chambers of Com merce in all countries. But as the interest of Germany in relation to these two articles is secondary to that of Great Britain, France, Russia, and America, it seems to me that the decision will depend solely upon the opinion of these governments.

In the Chinese memoir, nothing is said of the articles which have been hitherto imported duty free, and it remains to be known if, in the opinion of the yamun, they will continue to enjoy this exemption, or if they are comprised in the general tariff of five per cent. which is hereafter to be collected. This question is quite important for Germany, as many articles of its industry are specified in the treaty of September 2, 1861, among goods imported duty free. The same is the case respecting materials intended for the construction and provisioning of ships, as well as objects of household use, and personal effects, which, according to the plan of reform will, in future, only enjoy an exemption from duties in case they may be destined to the personal use of the importer. To tell the truth, I fear that this idea of having only a uniform tariff of five per cent. for all kinds of goods may not present a great difficulty in coming to an understanding, as the tariffs of the different treaties are calculated according to the demands of the industries of each country, and I do not think that the government can. abandon this principle unless great compensating advantages be offered them. I do not see in this proposition of the Chinese government anything beyond a desire to simplify the operations of the custom-house; and, in this case, it would be only a measure of convenience for the administration, which could only be adopted in case that its execution should be possible without injury to the important interests of different States and their industries.

According to the opinions set forth in the famous memoirs of Tsang Kwohfan and his colleagues, I have not been surprised to learn that the yamun opposes the non possumus to the admission of foreign salt from steam vessels, and of the right of domicile in the interior. The refusal to admit salt is explained by the circumstance that this article is a monopoly in China, and that commerce in it is prohibited to the natives. The navigation in the interior, which, years ago, was eagerly desired by European commerce, was that by sailing vessels, which is no longer of great use at present, if steamers are excluded. Perhaps it would be possible to admit little steamers on the lakes and the great

rivers.

The vital question-that which presents at the same time the most serious difficulties-is, undoubtedly, the privilege of residing in the interior; that is to say, the right of acquiring property outside of the open ports on the coasts. If, on the one hand, the foreign representatives are not in a state to sufficiently protect their citizens established in the interior, outside of the sphere of action of the consuls, it appears inadmissible, on the other hand, that the Powers should renounce jurisdiction over their citizens established in the interior, according to the conditions proposed by the yamun, since they could not practically refuse their protection to those among them who may have serious grievances against the Chinese governmental authorities. The difficulty would remain the same if an occasional merchant had succeeded, under favorable circumstances, in establishing himself in the interior without having subscribed to the condition demanded of him by the Chinese government. Keeping in view these difficulties, one would be tempted to believe that the right of traveling, buying, and selling freely in the interior might, for the present, suffice the demands of foreign commerce. Unless I deceive myself, the views of our colleagues upon these different points are very nearly the same as my own, and it seems to me too difficult a thing to render uniform the interests of all parties concerned. The only serious difficulty might be brought about, as I have suggested above, by the unification of the tariff and the project of doubling the imposts upon tea and silk. In every case I avow myself incompetent to pronounce, at present, upon this matter with a decisive opinion.

While submitting to you these observations, my dear colleague, and begging you to communicate them to our colleagues, it only remains for me to add that I shall hasten to report in the same spirit to my government, and that, meanwhile, I am entirely ready to concur, to the limit of my powers, and with the restrictions above indicated, which are imposed upon by the nature of things, for the establishment of a preliminary understanding in relation to the revision of the treaty of Tientsin. I have thought it useless to enter anew here upon a discussion of the questions which would need radical changes in the politics and the administration of China, since the exchanges of ideas which have recently taken place show an entire identity in the views of our colleagues, and the conviction of us all that the present moment is not favorable to put them forward. Please to accept, &c., &c.,

REHFUES.

H.
[Translation.]

KWANG-SHAN-Sz', August 26, 1868.

MY DEAR COLLEAGUE: The minister of France having replied to you directly upon the subject of your letter of the 5th instant, and of the Chinese memoir annexed to it,

I hasten to send you adjoined the communication of our colleague of Prussia, adding to it my own impressions.

But before entering upon the question, permit me to express to you my profound gratitude for the obliging communication which you have made us on the result of the inquiry which has been arrived at by the mixed commission which you had established by agreement with the Tsungli-yamun. I had scarcely hoped that the Chinese ministry would consent to the modifications and to the concessions emunerated in the documents which you have had the goodness to communicate to us; notwithstanding which, I doubt if they will satisfy the demands of foreign commerce, which are very frequently

excessive.

The tendency to put native merchants on the same footing as foreigners is very equitable, and we cannot but encourage the Chinese government to march in this direction, so beneficial to all.

One of the principal demands of foreign commerce is the privilege of residing in the interior. I think this is the only remedy against the abuses of custom-houses and of internal barriers. Since foreigners are permitted to travel in the interior, I do not see why they should not be permitted to buy there the products of the country for expor tation, and to sell foreign imported goods. I freely admit that the Chinese government would not wish to permit to individuals not subject to its jurisdiction the purchase of landed property outside of the ports open to commerce; but I think that foreign merchants may be permitted, without serious inconvenience, to make purchases of merchandise for exportation upon the spot of production, by paying the transit duty established for that purpose. The same in regard to imported goods; it is not just to prohibit the foreign merchant, who has paid the right of transit, from taking his goods to the places where he expects to sell them most easily.

It would then be desirable that the Chinese government should permit foreigners to have deposits of their goods in whatever places they may find convenient; whether in the centers of production or in the localities of the great fairs. It is necessary that the merchant, as he buys, should place in deposit some of the acquired productions; and likewise that, as he brings in foreign goods, he should have a place to store them. As there can be no property held outside of the ports open to commerce, he must necessarily hire store-houses, which is so far a disadvantage as compared with the native Chinese merchant, who, besides being able to own his own store-houses, has the means of renting them at fairer prices, and, above all, of opening shops and selling by retail not only foreign merchandise, but also the productions of the country whose sale may happen to be prohibited to foreigners.

I would even go further and say that we might provisionally forego the conceded privilege of transit, and consent to pay the duties charged at each barrier or custom-house in the interior, provided the amount of the imports were previously, and from a year in advance, made known to the consuls and to the public. This measure would also be a restraint upon the vexations to which Chinese merchants themselves may be exposed by the lesser mandarins of the customs barriers.

As to what relates to the difficulty presented to the Chinese government by the right of ex-territoriality which foreigners enjoy, I think that certain cases might be specified in which the local authorities of the country might be empowered to arrest a foreigner and conduct him to the nearest consulate, or even set seals upon merchandise, on condition of immediately turning over the matter to the consul, as in the previous case. These grave occurrences not being numerous, it would not be difficult to regulate the mode of procedure.

The permission of navigating the interior waters with sailing vessels is certainly a great concession on the part of the Chinese government, but for it to be profitable to foreigners they ought at least to be permitted to have little steam-tugs on the great lakes, as this would remedy the slowness of transport, of which there is so much com plaint.

There is still another question which I do not fully comprehend, i. e., the proposal of the yamun to double the imposts on tea and silk, in compensation of some other diminu tions in the tariff. Among the objects of exportation, tea and silk occupy the first places. I can understand that the forced exportation of silk may prove prejudicial to the manufactures of the country, and that the latter industry should seek encouragement in this way; but tea is upon a footing entirely the reverse, and the direct advantage of the country would require the encouragement of its production and exportation. The teas exported from China include species not used by the natives, so that they are, so far, a product purely for exportation. Besides, the imports on tea are already considerable, even much more than 10 per cent. ad valorem, and if there were to be any modification in the direction which the yamun desires, it would be rather to classify the teas in several categories, according to their values, since at the present time the yellow and green teas of highest value pay but the same duties as the black teas very inferior to them.

These are, my dear colleague, the principal points which, according to my ideas, would complete the work of the mixed commission mentioned at the outset of this