Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-24
Eastern C0mmunique
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Eastern COmmunlQue
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right Of levying customs duties. In
lS42, however. and in the subsequent
years after having made treaties with
Great Britain, France and the Uni
ted States, a limitation upon this
right was for the first time imposed.
The rule of i've per cent. ad valorem
was thereby established. and the
rates were based upon the current
prices then prevailing. In 1858, as
prices of commodities began to drop
and the five per cent actually COL
lected appeared to be somewhat in
excess of the five per cent. pre-
scribd. revision was asked for by
the treaty powers. A revision was
accordingly made. Later, however.
as prices mounted. no request for a
revision was forthcoming, and the
Chinese government on her part did
not press for a revision, seeing that
the revenue then collected from other
sources was not inadequate to meet
its requirements. But the fact was
that the customs rate then prevail
ing was much less than the five per
cent. stipulated for. 1t was only in
1902 that a revision was made in or
der to afford sufficient funds to meet
the Chinese obligations arising out of
the Boxer protocol. In that tariff the
rate was calculated on the basis of
the average prices of 1897 to 1899.
In 1902, an attempt was made by the
Chinese government to have another
revision, but it failed, owing to the
dificulty OF securing the unanimous
consent of IL or II powers. 1t was
only after six years of long negotia-
tons that in 1918, another revision
was affected. The tariff of 1918 is in
force and yields only 3 IL per cent.
mr.. Koo proposed to restore to Chi
ma the right to fix and to diffcrentiate
the import tariff rates, but as it ap-
peared hardly possible to establish a
new regime all at once. he said that
full autonomy should be restored to
China after certain period to be
agreed upon. In the meanwhile China
would impose a maximum rate and
would like to enjoy andshave fall free
dom within the different classes OF
commodities. But as the present IL
Earcial condition of the Chinese gov
eminent was such as to require some
immediate relief it was proposed that
on and after January l. 1922. the CHI
nesc import tariff be raised to 12a per
cent. as it was stipulated for in tn,
treaty with the United States. Great
Britain and Japan.
Among the reasons he alleged in
support of the proposals of the Chinese
delegation the following is the gist:
1.-The existing customs regime In
China constitutes an infringement OF
Ckina's sovereign right to fix the tar
| ifR rates at her own discretion.
| sN2-1t deprives China Of the power
| to make reciprocity arrangements with
the foreign powers. While all foreign
goods imported into China pay only 5
| per cent, Chinese goods exported to
foreign countries have to pay duties
of a maximum rate. Examples were
given to show this lack of reciprocity
| git constitutes a serious impede
mont upon the economic development
of China.
"4-As the system now stands, there
is only one uniform rate and 10 differ
| entiation of rates. The disadvantage
| is obvious, because it does not take
into account the economic and social
needs of the Chinese people. China Is
in need of machinery and metals for
| which Chinese would like to impose
tariff rate even lower than the per
cent. For luXuries, such a cigars and
cigarettes, they ought to pay heavy
tax. perhaps. in order to prevent their
injurious effects upon the moral ana
social habits of the people. AS it
stands, therefore, the Chinese tariff Is
not scientific at all.
! 1.-The present tariff has occasion
ed a serious loss OF revenue upon the
Chinese exchcquer. The item of Gus
toms duties is an important onc in the
budget Of nearly all countries. For
instance, Great Britain raises 10 Der
cent. of it's revenue from customs du-
ties France Is per cent and the United
States 35 per cent. before the Word
War, but the customs revenue in the
Chinese budget as, it now stands be-
comes = comparatively insignificant
| feature.
! '6-The present regime makes it
exceedingly difficult for the Chinese
government to ask for a revision as
it was shown in the past experiences
in 1912 and in 1918.
"7-Even il the effective five per
cent. should be levied the revenue re-
sulting therefrom will still be hardly
adequate to meet the requirements of
the Chinese government, as the gov
eminent has many functions to per-
form in matters of modern educa-
ton. sanitation and public utilities,
etc.
after general discussion Of the
customs tariff question. this subject
was transferred to the sub-commit-
tee agreed upon at the meeting held
Nov. END, the members of which
were announced to be as follows:
| "Chairman-Sen. Underwood, Unit :
ed States of America.
| Belgium: Baron De Cartier; NJ.
Gather, alternate.
| british Empire: Sir Robert Bor-
den; MIR. Lampson, alternate.
| China: DR.. Wellington koo.