The Washington herald., 1921-11-24
China Demands Right to
Rectify Her Gus
toms Duties.
FULL AUTONOMY
is PEKIN'S GOAL
Would Increase Present
Limitation to 12Ha
Per Cent.

China last evening explained her
position to the Limitation of arms
conference so far as her customs
duties are concerned. She appealed
directly to the delegates to the con-
ference from the eight nations as
sembled here in Washington for
authority to rectify her customs du-
ties SO that she can meet her obliga-
tions as a nation. She asked that
the present Limitation of per cent
Immediately be increased to 1874
per cent, effective as of January !
next; that later on she be allowed
authority to fix the rate of customs
impositions to meet her complete
needs, and that. after this has been
IN effect for a trial period, she be
given complete customs autonomy.
The discussion of the Chinese pro-
posals was initiated by Senator I'm
derwood. of the American delega-
tion. He set forth that in the opin-
ion of the Americans the Chinese
should be afforded every opportu-
n.ty to explain their case.
subcommittee To Act.
There was a general discussion.
after which the entire question of
the Chinese customs tariff was
transferred to the subcommittee
named for that purpose, which is
made up of Senator Underwood.
chairman: Baron de Cartier. for
Belgium: Sir Robert Borden, for
Great Britain: .Dr. Koo. for China:
NJ Sarraut. for France; Senator Al
bertini. for Italy: Mr.. Hsnihars. for
Japan: Jonkheer Beelaerts Won
Blokland. for Holland, and Capt. Err
nesto Vasconcelles, for Portugal.
The committee then adjourned TO
meet again on Friday at IL o'clock.
The subcommittee will meet at the
call of Chairman Underwood.
/ The statement made by DIR. Koo
on behalf OF China was very COM
plete. First of all. he emphasized
that the Chinese government had
no desire TO interfere with the pres
ent administration of maritime Gus
/ toms. or with devotion of the pro-
ceeds of the customs revenue to the
I Liquidation of various foreign loans
secured thereon.
Gives History Of Tariffs.
4 brief account was given by him
4 about the origin and the history OF
| the Chinese treaty tariffs. Prior TO
I 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. a 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 current prices
| then prevailing. In 1858, as prices OF
commodities began to drop and the s
per cent actually collected appeared to
/ be somewhat in excess of the 5 per
cent prescribed, a revision was asked
for by the treaty powers. A revision
was accordingly made.
Revision Made I'm 1902.
Later. however. as prices mounted
no request for a revision was forth
coming, and the Chinese government
on her part did not press for revi-
sion. 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 per cent stipulated for. 1t was
| only in 1902 that a 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 1t failed,
owing to the difficulty of securing the
unanimous consent of sixteen or seven
teen powers. 1t was only after six
years Of long negotiations that in 1918
another revision was effected. The
tariff of 1918 is in force and yields
only 31z per cent.
Seeks, More Freedom.
Mr.. Koo proposed to restore to China
| the right to fix and to differentiate
the import tariff rates. but as II ap-
peared hardly possible to establish
new regime all at once, he said that
full autonomy should be restored to
China after a certain period TO be
agreed upon. In the meanwhile. China
would impose a maximum rate and
would like to enjoy and have full
freedom with that maximum. such as
the right Of differentiation among the
| different classes Of commodities. But
as the present financial condition OF
the Chinese government was such as
to require some immediate relief. It
was. proposed that<on and after Jan
uary 1, 1922, the Chinese import tariff
be raised to 12h per cent. as it was
stipulated for in the treaty with the
United States. Great Britain and
Japan.
| Gives Seven Reasons
Among the reasons he alleged in
support of the proposals of the Chinese
delegation are the following:
1. The existing customs regime In
China constitutes an infringement
of China's sovereign right to hx
the tariff rates at her own discre-
ton.
9. 1t deprives China Of the power
to make reciprocity arrangements
4 Continued On Paes Two.