The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-24
PRESENT CHINESE
TARIFF IS UNJUST
DELEGATE SAYS
koo Explains Chiha'S Posi-
tion-UnderWood Chair
man of Committee to In
veStigate Subject

following communlque was ISSUED to-
day on the meeting of the committee
on Pacific and far eastern ques-
tons:
The committee on Pacific and far
eastern questions met at $3.50 p. m.
in the Columbus room of the Pan
American building. All the members
were present except Signor Media and
Baron Shidehara. M. Hanihara was
present for the first time as one of
the JAPANESE delegates The topic
of discussions was the revenue of
China Mr.. Koo, on behalf of the
Chinese delegation, made a statement
as follows:
First of ali, he emphasized that
the Chinese government had no de-
stire to interfere with the present
ADMINISTRATION maritime customs or
with devotion of the proceeds of the
customs revenue to the liquidation
Of various foreign loans secured
thereon. A brief account was given
by him about the origin and the his
tory of the Chinese treaty tariffs.
Prior to 1912, he said. China enjoyed
the full right of levying customs
duties. In 1912, however. and in the
subsequent years after having made
treaties with Great Britain, France
and the United States, limitation
upon this right was for the first time
imposed. The rule of per cent ad
Valorem was thereby established and
the rates were based upon the cur
rent prices then prevailing. In 1858,
as prices of commodities began to
drop and the per cent actually col
1ected appeared to be somewhat in
excess of the per cent prescribed,
( for ~ 6a
powers. A revision was accordingly
made.
Later, however, as prices mounted,
no request for a revision was forth
coming and the Chinese government,
on her part, did not press for re-
vision, 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 prevailing. was much less
| than the 5 per cent stipulated FOR.
1t was only in 1902 that revision
was made in order 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 1912 an attempt was
made by the Chinese government to
have another revision but it failed
owing to the difficulty of securing
unanimous consent of 16 or II pow
ers 1t was only after six years OF
long negotiations that in is that
another revision was affected. The
tariff of 1918 is in force and yields
only az per cent
koo Proposals
Mr. Koo proposed to restore TO
China the right to fix and to dlneren-
tiate the import tariff rates, but as
it appeared hardly possible to estab-
llsh a new regime all at once, he SAID
the full autonomy should be restored
to China after certain period to be
agreed upon. In the meanwhile CHINA
! would impose a maximum rate ana
would like to enjoy and have full
freedom within that maximum, such
as the right of differentiation among
the different classes of commodities.
But as the present financial condition
! of the government was such as to re-
ouire some immediate relief. 1t was
proposed that on and after January
l. 1922. the Chinese import tariH be
raised to 1914 per cent, as it was
stipulated in the agreement
"An,ong the reasons he alleged
In support of the proposals OF
the Chinese delegation the follow
ing II the gisti
/ Inc
in China constitutes an infring-
ment of Cbina's sovereign right
to fix the tariff mt her own dis
erection.
~. II depriyes China of the
| mower TO make reciprocity ar-
rangements with the foreign
mowers. While all foreign goods
Imported into China pay only
per cent. Chinese goods exported
| TO foreign countries hnve 10 pay
duties of a maximum rate EN-
amples were given 10 snow '"'s
lack of reciprocity.
"3-It constitutes serious impede
ment upon the economic development
of China.
One Uniform Rate
As the system now stands there
is only one uniform rate and no Diff
ferentiation of rates. xhe disadvan-
! tage is obvious because 1t does not
take into account the economic and
social needs of the Chinese people
China is in need of machinery and
metals for which China would ike to
| impose a tariff rate even lower than
7 the ! per cent For luxuries, such as
cigars and cigarettes they ought to
nav heavy tax perhaps, in order to
preyent their injurious effects upon
the morale and social habits of the
people. As it stands, therefore the
, Chinese tariff is not scientific at all.
"5-The present tariff has occa-
stoned serious loss of revenue upon
the Chinese exchequer. The item OF
customs duties is an important one
in the budget OF nearly all countries;
for instance. Great Britain raises IL
per cent of its revenue from customs
duties; France IS per cent, and the
Tfnfted states IS per cent before the
World war, but the customs revenue
in the Chinese budget as 1t now
stands becomes a comparatively lnsig-
nificaht factor.
n6--The present regime makes it
exceedingly difficult for the Chinese
government to ask for a revision as
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| nECEQTI0M EQ0M