Evening star., 1925-11-07

There is rejoicing among the
friends of the Chinese Republic over
the successful issue OF the interna-
tional conference, which assures au-
tonomv in the matter of Chinese
tariffs. 1t Is agreed that q surtaX of
2ia per cent and iuXury tax OF .
per cent will be added TO present
tariffs and come into force next wear.
and that. after 1929, China will be
free from foreign restrictions. and
may fix her policies of tariff for rev.
enue and protection.
There is en- undercurrent of Amer
lean satisfaction in this internationa
acceptance of the american plan,
not only in it's effect in strengthening
China's income, but in strengthening
the republic and, eventually, giving 1t
autonomy in other matters. II IS ira
ditional of American diplomacy TO aid
China whenever possible, so as 10
make her independent of the en-
croachments of other nations.
X x X x
Yet not all Chinese have the vision
of q Greater China which would bring
them optimism in the present increa Sc
Of Chinese independence. A prominent
Shanghai merchant writes that tariff
autonomy will prove a great dis
aster," even to China. because, here
to keep their agents at the ports, with
authority to control the revenues as
they came from the customs. These
agents first applied such amounts az
were needed in settling interest
charges on foreign bonds, after which
the balance. if any remained, would
be turned over to the Chinese treas
ury. Now. under autonomy, there will
be no foreign agents and the Chinese
federal government will get nothing,
for the tuchans governors of the
coast provinces will seize the receipts
for the support Of their rebel armies
The critic has no faith that the fed
eral government could ma aintain it's
own revenue collectors al the ports,
Is 10 done in other lands.
Another phase of the "disa ster'' of
tariff autonomy, as predicted by the
merchant, is that if China becomes
free to make its own tariff laws,
China will discriminate against GER
tain nations in a spiteful spirit. To-
day that discrimination would be
against Great Britain and would
amount to a boycott against all Brit
ish importations into China. Tomor-
row. a similar discrimination might be
aimed against the United States. ac-
cording to the Chinese pessimist.
The answer is that treaty stipula-
tions guaranteeing to each nation all
the benefits OF "the most favored ma
tion" are common in all diplomacy
and would make special discrimina-
ton impossible.
The objector predicts that the
struggle of the border tuchans to
seize import revenues from the CEN
trail government will lead to wars, but
that does not seem to be taken seri-
ously. by the diplomats who have ia
vored the new arrangement. They
say the present situation is one of
persistent wars between the govern
ment and the independent tuchans,
in which the government Is weak for
lack of revenue, hence the right to
fix its own rates OF tariff will carry
with it the privilege and power of
protecting the income and give the re-
public the means of maintaining Of
ficials and armies.
+ X X
The control Of Chinese tariffs by
foreign powers dates back TO 1912,
beginning with the treaty of Nanking
between China and Great Britain.
Under this treaty five ports were open
ed for foreign commerce, with a 5
per cent ad valorem schedule for both
exports and imports. The United
States duplicated the British treaty in
1874.
A downward revision Of the rate
was agreed to in 1858, owing to the
fall in values Of goods. Although val
ues increased later, no increase of
tariff rates was asked by China until
1909. when the Boxer rebellion indem-
nifty necessitated an increased reve.
nue.. The indemnity was raised at the
expense Of the importers from the
very nations receiving the compensa-
lion.
That 1902 inclssse did not prove 10