The times., 1899-10-20
DUTY ON FoRMosA TEA.
Suggestions Concerning II From
Consul General GOOdnow.

Consul General GOOdnow.
United States Consul General Goodnow
writes the State Department from shang-
hal regarding export duty now levied on
Formcsa tea. the bulk Of which comes to
this country. He says:
From the coming into operation of the
new treaties. export duties in Japan have
been abolished. but not in FormOsa. Here
the old duties have been taken off, and in
their place a new duty of l.06 yen $50
centsD per picul on OoIoongs, and 1.20 yen
go cents) on Pcuchongs is imposed on all
shipments to places other than ports in
Japan. and on shipments to these latter
their place new duty Of 1.60 yen go
cents and so cents) per picul, respectively,
is payable. These changes were made with
out any notice being given to the general
public. or the firms interested. and it was
first arTangd that they should go into effect
On July II, but this was afterward changed
10 August (. The object of these new
duties, at first sight TO one unacquainted
with the actual circumstances of the case,
would appear to be simply 10 encourage
/ trade between the island and Japan; but
the result is really, while observing the
letter of the treaties, 10 set aside their gen
eral spirit and intention and effect a very
substantial discrimination in favor or
route which happens to be under the con-
troll Of japanese steamship companies only,
as against one which is not so controlled
/ The general purpose and intention of the
treaties is to put foreigners and Japanese on
( exactly the same footing as regards both
( imports and exports. and to allow no dis
4 elimination in favor Of either one or the
other; but here, while obeying the letter
4 Of the treaty. the general tenor and spirit
+ is entirely cast aside and a state Of things
I inaugurated, which amounts to a very
/ practical discrimination against the for
! eigner Moreover, as at present. there are
no sailings direct from FOrmosa 10 Ameri-
/ ca-which is far and away the largest con-
sumer of FoTmosa OOloongs. but only via
Annoy and Japan. and as ali shipments
( from Formosa to America must therefore,
! go either to Japan or TO Annoy for trans
shipment, the effect Of this law discrmin-
/ ating in favor Of the route 10 Japan is to
/ place shippers via Annoy at a positive dis
/ advantage in the markets OF America as
against shippers via Japan, and as such
/ is not only unfair in our opinion, but ar
I bitrary in the extreme The tea trade of the
island has been built up in the past with
( capital introduced from Annoy and Annoy
f. houses have large interests here and are
amongst the principal purchasers and ship
! pers of the crop so that discrimination
! against Amcy is the last thing one would
/ expect from the Government, especially
! when one considers that trade was in full
I swing and well established long before
! the Japanese came TO the island. We must
say IL seems to US a mistake and, what
ever may be their legal rights on the
+ subject, looking at the mere letter OF the
/ treaties, We can not but think they are un-
( wise in making any discrimination at all.
/ Furthermore. as a matter CT policy, and in
/ their own interests. it seems TO US very
4 shortsighted.
Shipments 10 America during past
/ years have been so heavy that at the pres
( ent moment the stock Of Ooloongs in that
( country amounts TO quite eighteen months
+ supply, at the average rate of consumption
! for all America. and the trade there is
! practically at a standstin, except for ac
count OF direct consumers. so that it be-
comes imperatiyely necessary, in the in
I teTests Of the islands, to encourage new
/ outlets wherever they can be found. if pro-
duction is not 10 be curtailed. Is this the
way 10 encourage the finding of these new
I markets? We hardly think so. Competi-
I ton is so keen nowadays, that the very
/ best thing the Government could do TO pro-
mote the sale Of the islands teas and to
1 encourage the finding OF new outlets.
/ would be TO take of all duties altogether if
( only revenue interests would permit it.
1 Formosa teas would then be placed in
better position to compete with the teas
! produced in other countries, and the ISL
and's welfare and prosperity promoted ac-
coTdingly."