Evening star., 1922-01-06

the Chinese government more ma.
tional In character.
II explained the reasons why China
was desirous of recovering her free
ter Of levying customs duties. The
COMMITTEES. after some discussion, re-
| rerred the whole question to q sub
committee Of which Senator Under
wood has been the distinguished
chairman. The results Of the discus
sions in the subcommittee are en-
Dodied In an agreement which has
Just been laid before you. 1t Is q val
9aDle agreement. embodying. as 1t
does. number OF important points
connected with the effective applica-
ton Of the present regime Of treaty
tariff. But II will be noted that the
question Of the RESTORATION Of tariff
autonomy to China Is not included. 1t
Deing the opinion Of some members Of
the subcommittee that Vt would not
pc practicable to fix at present a
definite period within which the ex-
listing treaty provisions on tarfr were
20 oe brought to an end, and that the
question should be decided In the
HSnS OF conditions that might arise
IN the future.
Plea for Autonomy.
The Chinese delegation. however,
cannot but wish that different view
mad prevailed. Tariff autonomy is a
sovereign right enjoyed by all inde-
pendent states. Its free exercise is
essential to the well being of the
s,ste; bH 1s,,a The existing treaty provisions.
transit dues and other imposts is
regulated. constitute not only a re-
striction on China's freedom Of ac-
ton. but an infringement Of her SOW
ereiEnty. Restoration to her of tariff
a9tomony would only be recognition
she relinquished against her will.
ne maintenance Of the present
tarin regime means. moreover. a con-
tinued loss Of revenue to the Chinese
duty under this regime is limited to
the very low rate of per cent ad
Valorem for all classes of dutiable
goods. compared with the average
rate or 15 per cent to 60 per cent
because the duties are levied on the
basis OF a previously fixed schedule.
the actual collections amount to only
81 per cent effective. The customs
revenue therefore constitutes only
revenue, while the average for the
principal countries in the west ranges
from IL per cent to Is per cent at
present, and still higher before the
war. When the proposed surtax Of
~ per cent for ordinary articles and
- ~ SChS oH CcEtdln
eventually goes into effect more reve-
nue. will be produced. but even then
! it will hardly be commensurate with
! the rapidly growing needs Of the
Chinese government. Much of the
elasticity Of the fiscal systems of
other states depends upon their free
dom to regulate their customs duties.
To provide the fullest and most un-
embarrassed opportunity to China to
develop and maintain for herself an
| effective and stable government, it is
necessary to restore tariff autonomy
| to her at an early date.
"The necessity to levy a uniform
low duty has encouraged a dispropor-
| tionate increase in the import of lux
| uries such as wine and tobacco; and
apart from the loss OF revenue conse-
| quent upon giving these things the
| same rate as is levied on the neces-
saries Of life. the effect on the social
| and moral habits of the Chinese peo-
pie has been altogether deleterious.
A beginning has been made in the
| agreement before the committee in
authorizing a levy OF an additional
surtax of 2h per cent on certain ar
| ticles Of luxury. but it is apparent
| that greater increase is needed II q
restraining influence is to be exercised
in the use OF these articles of luxury.
Present Tariff Impeaiment.
'Nor is it to be overlooked that the