Under the present rules and regulations we are laboring under great disadvantages as compared with the Hongkong merchants, and we will be glad if you can see your way clear to put the matter before the inspector-general of the imperial maritime customs at Peking, with a view to affording us relief. As previously pointed out, the Hongkong merchant can ship oil from Hongkong to ports of call on the West River by the payment of one full import duty at the treaty port of Samshui. We, in order to ship to the same ports, are compelled to take out transit passes for oil on which we have already paid full import duty at Canton. The discrimination in favor of Hongkong merchants is obvious. We wish to be allowed to ship oil from Canton to West River ports of call under exemption certificate issued by the imperial maritime customs at Canton. The oil will be conveyed by our own lighters, towed by our own Americanregistered towboat Comet (trading under inland water regulations). In support of our request, we beg to point out that we have erected a large installation at Canton in order to develop and improve trade throughout this territory. We are paying out thousands of dollars every year to local Chinese to whom we give employment. Our big ships, both steam and sail, are bringing us cargo direct from America, and the tonnage dues they pay to the Chinese customs are considerable. Our tanks are bonded, but we do not take advantage of bonded privileges; instead, we pay duty on all cargo as soon as received. This does away with the inconvenience of having a customs officer visit our plant to measure tanks every time we draw oil from them. We wish to avoid having to call at Samshui, for not only is it a loss of time to our vessels if we are compelled to do so, but it is dangerous. The lighters we are now using, as well as the one in course of construction, are large craft and difficult to manage in narrow channels such as exists at Samshui. Our oil, both case and bulk, having duty on importation at Canton and examined by a customs officer when shipped to some other port, either under exemption certificate or transit pass, we think you will agree that we are incurring unnecessary risk if we are forced to call in at Samshui. If the present discrimination is allowed to continue, you can readily understand that it will mean that we in Canton can not compete with other oil merchants in Hongkong, our Canton territory business will suffer, and our output curtailed, so that our importations at Canton will be less, and ships that would bring us cargo will be sent to and discharged at Hongkong instead. If there are any points not covered in this letter on which you wish further information or particulars, we shall be pleased to furnish them. We have, etc., [Inclosure 2.1 D. H. CAMERON, Attorney. To F. O. No. 266.] Minister Rockhill to the Prince of Ch'ing. AMERICAN LEGATION, Peking, June 19, 1907. YOUR IMPERIAL HIGHNESS: Certain American merchants have established themselves at Canton, China, and have erected at great expense godowns, warehouses, etc., for the sale and distribution of American merchandise in southern China. These merchants find themselves unable to compete with the foreign merchants of Hongkong in trading at the open ports and "ports of call" on the West River, by reason of the "Regulations of trade on the West River." According to these regulations goods carried on steamers from foreign ports, Hongkong, Macao, etc., and intended for West River treaty ports, pay a single import duty at the port of destination, and at Kongmoon, Samshui, or Canton, if destined for a port of call. Merchants at Hongkong, therefore, can ship merchandise to any of the ports of call by paying a single duty at either of the three treaty ports just mentioned. The foreign merchant at Canton, however, must pay full duty and a half, i. e., full duty at Canton, and the half duty for a transit pass to ship his goods to West River ports. It becomes my duty, therefore, to call the attention of your imperial highness to the fact that by the special article in the British treaty of 1897, and by Article X, of the British treaty of 1892, Samshui, Wuchoufu, Kong Kun, and Kongmoon, have been opened as treaty ports, and that in addition to these, six other places viz., Kumchuck, Paktauhau, Shuihing, Lottinghau, Takhing, and Dosing, have been opened as ports of call, "where," it is stipulated, "British steamers shall be allowed to land or ship cargo and passengers, under the same regulations as apply to the ports of call on the Yangtze River." A most casual reference, however, to Article IV of the regulations of 1898 governing trade on the Yangtze River will show that the regulations of trade on the West River are greatly at variance with those in force on the Yangtze, and I have the honor, therefore, to request your imperial highness to issue instructions to the end that the former regulations be altered to agree in all points with the latter. Trusting that I may receive an early and favorable reply to this reasonable request, YOUR EXCELLENCY: I have the honor to acknowledge the receipt of your excellency's note of June 19th in which you state that there are certain American merchants at Canton who have erected godowns, warehouses, etc., for the sale and distribution of American merchandise; that these merchants find themselves unable to compete with the foreign merchants of Hongkong in trading at the open ports and "ports of call" on the West River by reason of the "Regulations for trade on the West River;" that according to these regulations goods carried on steamers from foreign ports, Hongkong, Macao, etc., and intended for West River treaty ports, pay a single duty at the port of destination, and at Kongmoon, Samshui, or Canton, if destined for a "port of call;" that merchants at Hongkong, therefore, can ship merchandise to any of the treaty ports or "ports of call" on the West River by paying a single duty, while foreign merchants at Canton must pay full duty and a half, i. e., full import duty at Canton, and a half duty for transit pass to ship his goods to West River ports. Your excellency then pointed out that by the special article in the British treaty of 1897, and by Article X of the British treaty of 1902, Samshui, Wuchoufu, Kong Kun, and Kongmoon were opened as treaty ports, and that in addition six other places viz: Kumchuck, Paktualiau, Shuishing, Lotinghan, Takhing, and Dosing, were opened as ports of call, "where British steamers shall be allowed to land or ship cargo, and passengers, under the same regulations as apply to the ports of call on the Yangtze River." You then further stated that reference to the regulations of 1898 governing trade on the Yangtze River, would show that the regulations for trade on the West River were greatly at variance therewith, and you requested, accordingly, that instructions would be issued to the end that the West River regulations be altered to agree with those in force on the Yangtze. In reply to the above, I have the honor to state that your note was referred by my board to the superintendent of customs for his consideration and reply, and that such reply has now been received from him, as follows: * "Section III (entitled 'Trade') of the Chinese-British agreement, signed September 13, 1876, provides that at certain points on the shore of the Great River, namely, Tat'ng, ard Anching in the province of Anhui, Huk'ou in Kiangbsi, Wusueh, Luch-ik'ou, etc., in Hukuang * steamers shall be allowed to touch for the purpose of landing or shipping passengers or goods; but in all instances by means of native boats only, and subject to the regulations in force affecting native trade.' "The same section provides also that foreign goods will be passed free of likin upon exhibition of half-duty certificates. "It is clear, therefore, that foreign goods are required to pay the regular import duty upon arrival at a treaty port, and if transshipped to the ports of all on the Yangtze River they must pay the transit duty of one-half in addion. That is what the regulations demand. "It is now pointed out that Canton merchants are required to pay full import drty upon foreign goods at Canton, and an additional half duty if they wish to ship the same to the West River ports. But this is exactly in accordance with the requirements of the Yangtze River regulations. There is not the slightest difference in their stipulations, and it is therefore unnecessary to make any alterations. Will you kindly reply to that effect? It becomes my duty to send this dispatch, incorporating the reply of the superintendent of customs, to your excellency for your information. A necessary dispatch. [SEAL OF THE WAI-WU PU.] [Inclosure 4.]. To F. O. No. 266.] Minister Rockhill to the Prince of Ch'ing. AMERICAN LEGATION, YOUR IMPERIAL HIGHNESS: I have the honor to acknowledge the receipt of your imperial highness's note of the 26th of July, replying to one which I addressed you on June 19 last in reference to the preferential treatment accorded by the imperial maritime customs to ships from Hongkong, Macao, and other foreign ports at ports of call on the West River. In the note under acknowledgment your imperial highness quotes the Shui Wu Ch'u as saying in reply to my representations: "It is clear, therefore, that foreign goods are required to pay the regular import duty upon arrival at a treaty port, and if transshipped to the ports of call on the Yangtze River they must pay the transit duty of one-half in addition. That is what the regulations demand. "It is now pointed out that Canton merchants are required to pay full import duty upon foreign goods at Canton, and an additional half duty if they wish to ship the same to West River ports. But this is exactly in accordance with the requirements of the Yangtze River regulations. There is not the slightest difference in their stipulations, and it is unnecessary, therefore, to make any alterations. Will you kindly reply to that effect?" This is quite correct, so far as it goes; it states very exactly the point I have raised, but it does not answer my contention, which is that steamers from foreign ports can and do land goods at any of the ports of call on the West River after payment of the tariff duty only, while foreign goods imported to these same ports of call via Canton are paying (in accordance with the Yangtze regulations) not only the tariff import duty, but inland transit dues as well. It is patent, therefore, that preferential treatment is accorded foreign trade from foreign ports at these localities against foreign trade from Canton, a Chinese port, and, I may be permitted to remark, to the no less evident prejudice of the Chinese treasury. Article V, paragraph 6, of the West River regulations of 1904, drawn up by the Canton, Samshui, and Kongmoon customs, provides that foreign-going steamers trading in the West River shall pay import duty on cargo from abroad either at the destination treaty port or, when the merchandise is for a port of call, at the port of entry from abroad; and the second half of that paragraph, on domestic trade, states plainly that if goods go from treaty port to port of call and do not pass another treaty port, such goods will pay the import duty only, the result being, as said above, that goods from Hongkong and Macao reach ports of call on the West River after payment of import duty only. This paragraph 6 is clearly not in accordance (1) with the provisions of Article X, section 2, of the British treaty of 1902, which provides that "British steamers shall be allowed to land or ship cargo and passengers at certain specified ports on the West River under the same regulations as apply to the ports of call on the Yangtze River," and (2) it completely ignores the provisions of section 3 of the Chefoo agreement (relating to collection of likin at ports of call on the Yangtze), to the effect that at such points, "except in the case of imports having transit-duty certificates or exports similarly certificated, which will be severally passed free of likin on exhibition of such certificate, likin will be duly collected on all goods whatever by the native authorities." I must therefore take exception to the conclusion reached by the Shui Wu Ch'u, as quoted by your imperial highness, when it ends its communication by saying that "it is unnecessary to make any alteration." Some alteration is, on the contrary, urgently needed to place the foreign trade of Canton with ports of call on the West River on a footing of equality with foreign trade to the same ports of call from foreign ports. Either foreign goods brought to these ports of call through Canton should be released from the payment of transit dues, as are goods brought there from Hongkong and Macao, or transit dues should be levied on goods imported to these ports of call from Hongkong and Macao in accordance with the provisions of treaty and regulations. I beg that your imperial highness will give this question your early consideration and favor me with a reply. I avail, etc., W. W. ROCKHILL. [Inclosure 5.-Translation.] The Prince of Ch'ing to Chargé Fletcher. FOREIGN OFFICE, Peking, October 8, 1907. YOUR EXCELLENCY: My board recently received a note from Mr. Rockhill with reference to the trade at the ports of call on the West River. In this note his excellency pointed out that foreign goods shipped from Canton to ports of call on the West River should be exempt from the extra half duty, as are goods shipped from Hongkong and Macao; or else that the Hongkong and Macao merchants should be required to pay the other half duty, in accordance with treaty stipulations. He requested that the matter be carefully considered by my board and a reply sent to the legation. Upon receipt of the above from Mr. Rockhill the matter was referred to the superintendency of customs, from which the following reply has now been received: "We find that foreign merchandise which has already paid the regular import duty at a treaty port and is then transshipped to a port of call should, according to treaty stipulations, pay an extra half duty for a transit pass before it can be landed. Merchandise not covered by such transit pass should upon arrival at a port of call pay likin duty according to the regulations of that port. This office has therefore instructed the inspector-general of customs to telegraph to the commissioners of customs in Canton and other places, directing them to issue notices to the effect that all foreign goods upon which the regular import duty has been paid, but not the extra half duty, shall upon arrival at a port of call from any port whatever be subject to likin duty, this being only, fair and quite in accordance with the treaties, it is not levying any new tax. "Under this arrangement no preferential treatment as regards duty will be shown to dealers in foreign merchandise, whether they be located at Canton or in a foreign city. Besides sending these instructions to the inspector-general of customs for transmission to the customs authorities in Kwangtung, and telegraphing to the same effect to the viceroy of Liang Kuang, it becomes our duty that you will transmit the information herein contained to the American minister." I send this reply of the superintendency of customs to your excellency for your information, and request that you will direct compliance with its requirements. A necessary dispatch. [Inclosure 6.] [SEAL OF THE WAI-WU PU.] Chargé Fletcher to Consul-General Bergholz. AMERICAN LEGATION, Peking, October 10, 1907. SIR: In continuation of my No. 1374 of August 16 last, and replying to your No. 127 of August 21, 1907, I inclose herewith a note from the Wai-wu Pu, dated the 8th instant, which is self-explanatory and which settles the matter of equality of treatment of goods reexported from Hongkong and Canton to West River ports. HENRY P. FLETCHER. I am, etc., File No. 788/112-118. No. 380.] The Secretary of State to Chargé Fletcher. DEPARTMENT OF STATE, Washington, December 16, 1907. SIR: I have to acknowledge the receipt of your dispatch, No. 759 of October 14 last, inclosing a copy of correspondence relating to the matter of the preferential treatment given by the Chinese customs regulations, in violation of treaty stipulations, to trade from Hongkong and Macao to the open ports and ports of call on the West River as against trade from Canton. You state that the matter was taken up by the legation with the Wai wu Pu, on the representations of the agent of the Standard Oil Company at Canton, and has been satisfactorily settled; and that hereafter foreign goods entering a port of call or open port on the West River will be subject to likin, unless they pay the extra half duty that is payable upon goods entering from an open port in China. The department is glad to learn that under the present arrangement, as set forth in the note from the Prince of Ch'ing, dated October 8, American trade at Canton will henceforth be able to compete on a footing of equality with the trade of Hongkong and Macao. The department is gratified that the action of the Chinese Government has removed so completely the discrimination against American trade which existed heretofore. I am, etc., E. ROOT. RECIPROCAL PROTECTION OF TRADE-MARKS AND COPYRIGHTS IN CHINA. [Continued from Foreign Relations, 1906, pp. 228 et seq.] File No. 406/22. No. 488.] Minister Rockhill to the Secretary of State. AMERICAN LEGATION, Peking, December 24, 1906. SIR: In further reference to the subject of the arrangement by exchange of notes with such of my colleagues as may be duly authorized by their Governments for that purpose for the reciprocal protection of our trade-marks in China, I have the honor to inform you that the Spanish minister has advised me that he was unable to exchange such assurances with me, as Spanish consuls in China were not empowered to hear cases involving infringement of trade-marks. I have, etc., W. W. ROCKHILL. File No. 406/22. No. 107.] The Acting Secretary of State to Minister Collier. DEPARTMENT OF STATE, Washington, February 18, 1907. SIR: In the year 1895, by means of an exchange of notes between the consul-general of the United States and the British minister at |