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Rule II.

The following will not be liable to import duty: Foreign rice, cereals, and flour; gold and silver, both bullion and coin; printed books, charts, maps, periodicals, and newspapers; samples in reasonable quantities, and certified to be for show and not for sale; Government stationery for consulates in China; passengers' baggage for bona fide private use; circulars, etc., distributed gratis by mercantile houses; and private effects (not including wines, stores, and tobacco) of individual foreigners imported by themselves for their own personal use and not for sale, provided that the customs authorities are satisfied that the articles in question fulfill these conditions. A freight or part freight of duty-free commodities (personal baggage of less than twenty passengers and gold and silver bullion and foreign coins excepted) will render the vessel carrying them, though no other cargo be on board, liable to tonnage dues. Drawbacks will be issued for ships' stores and bunker coal when taken on board.

Rule III.

Except at the requisition of the Chinese Government, or for sale to Chinese duly authorized to purchase them, import trade is prohibited in all arms, ammunition, and munitions of war of every description. No permit to land them will be issued until the customs have proof that the necessary authority has been given to the importer. Infraction of this rule will be punishable by confiscation of all the goods concerned. The import of salt is absolutely prohibited.

Subject to the approval of His Imp. & Roy.

SHENG HSÜAN-HUAI.
LÜ HAI-HUAN.

Apostolic Majesty's Government E. V. HIRSCH.
Ad referendum D. SIFFERT.
DR. BOYÉ.

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NOTE.

To accompany slip prints of the treaty between the United States and China for the extension of the commercial relations between them.

Signed at Shanghai, October 8, 1903.

YOUR EXCELLENCIES,

SHANGHAI Aug. 29th 1902.

With reference to the New Tariff which has just been signed, this note puts on record that the following words have been erased from Rule II of the Rules at the end of the Tariff;-"Samples in reasonable quantities & certified to be for show, & not for sale; Government stationary for Consulates in China, passengers' baggage for bonâ fidê private use; circulars, &c, distributed gratis of Mercantile houses; and private effects (not including wines, stores & tobacco) of individual foreigners imported by themselves for their own personal use & not for sale provided that the Custom Authorities are satisfied that the articles in question fulfil these conditions"; and also "personal baggage of less than twenty passengers and"

It is understood between the Foreign & Chinese Commissioners that, though the above words have been eliminated from the Rules, the matter therein referred to will be dealt with by the Inspector General of the Imperial Maritime Customs at his discretion in accordance with

the instructions issued by him subsequent to the Final Protocol of the 7th September 1901.

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Vide T. G. Circulars Nos. 979, 984, 1016, 1020, 1022, 1025, 1026. Instructions received.

12th Oct. 1901.

12th Oct. 1901

7th Nov. 1901

19th Apl. 1902

1 May, 1902

31 May, 1902

10th May, 1902

3 June, 1902

12th Oct. 1901 3 June, 1902

3 June, 1902

31 May, 1902

1. Foreign Rice, cereals and flour, gold and silver coined and uncoined.

2. Legations supplies from abroad.

3. Supplies for the use of Foreign forces Military and Naval.

4. Official stationary actually transmitted by foreign Government Departments for Foreign Consulates.

5. Supplies under Government stores Certificates.

6. Materials for Railways the import of which "free" is provided for by agreements antedating the Peace Protocol.

7. Samples; in reasonable quantities certified for show and not for sale.

8. Circulars, etc., distributed gratis by mercantile houses.

9. The bona fide baggage of travellers i. e. passengers luggage arriving either with the owner or by a vessel other than that by which the passenger travels.

10. Clothing, books, pictures and furniture already in use when brought in by residents and not for sale.

N. B. Ships Coal and provisions are entitled to drawbacks.

The figures in the Import Tariff schedule express amounts in haikwan taels.

RIGHTS OF FOREIGNERS IN PEKING.

Mr. Conger to Mr. Hay.

No. 779.]

LEGATION OF THE UNITED STATES,
Peking, October 16, 1901.

SIR: I have the honor to transmit herewith translations of correspondence between the foreign office and this legation upon the ques

tion of the continued residence in Peking of foreign merchants who located here during its occupation by the allied forces.

* * *

The treaties do not permit the residence of any foreign merchants in the city of Peking, but several years ago permission was given for the opening of stores here by a Dane, a German, and a Frenchman for the especial accommodation of the legations, but their trade soon developed into a very large business with the Chinese. The Hongkong and Shanghai and the Russo-Chinese banks have also been established here for several years, so that the city has, in fact, by precedent at least, been opened to special if not to general trade.

It is true that the banks and stores mentioned are located within the limits of the legation quarter, but their business extends throughout the city. I have consequently, as have most of my colleagues, thought best to keep the question open, with the hope that its final settlement would result in opening the city generally to foreign trade. Further action will be promptly reported.

I have, etc.,

E. H. CONGER.

[Inclosure 1.-Translation.]

Prince Ching to Mr. Conger.

Last year after the military disasters it became common for merchants of various foreign nationalities to rent or seize houses in all parts of the city and open, shops. The allied forces being in possession and control and the local administration not having been handed back, the circumstances were not those of ordinary times, but now that peace negotiations are concluded and friendly relations reestablished, seeing that Peking is not in the list of treaty ports, the shops and hongs established by these foreign merchants ought all be removed to the treaty ports in accordance with the treaty stipulations.

Should there be any who had put buildings in repair, they ought also to take these away immediately, and in order to avoid complications there ought to be no pretext of demanding compensation.

As in duty bound I send this dispatch to your excellency, that on examination you may issue orders accordingly.

Kuanghsu, twenty-seventh year, eighth moon, 22d day (October 4, 1901).

[Inclosure 2.]

Mr. Conger to the President and Ministers of the board of foreign affairs.

LEGATION OF THE UNITED STATES,
Peking, October 10, 1901.

YOUR HIGHNESS AND YOUR EXCELLENCIES: I have the honor to acknowledge the receipt of the dispatch of your highness and your excellencies, dated the 4th instant, in which you call attention to the fact that during the military occupation of Peking this past year many merchants of various nationalities seized or rented houses in different parts of the city and opened shops. You say that the conditions then were exceptional, but that now that the peace negotiations are concluded these shops and hongs ought to remove to the treaty ports in accordance with the treaty stipulations, etc.

In reply I beg to say that I am informed that merchants and other business men of various nationalities have already been given permission to carry on business in Peking.

If this information be correct, then, of course, citizens of the United States have the same right. But if all foreign business is to be excluded from the city, then the United States merchants, if there are any, will be instructed to go out with the others.

I, however, take the liberty to incidentally suggest to your highness and your excellencies that the present is a most opportune time for the Chinese Government to voluntarily place the city on the basis of a treaty port.

Peking should be the great and convenient entrepot for the vast and populous territory behind it, and if so opened Chinese revenue would be increased thereby, the recently reestablished peace and friendly intercourse would be strengthened, and mutual benefits result.

I avail myself, etc.,

E. H. CONGER.

Mr. Hay to Mr. Conger.

No. 416.]

DEPARTMENT OF STATE, Washington, November 23, 1901.

SIR: I have to acknowledge the receipt of your dispatch No. 779, of the 16th ultimo, inclosing a copy of correspondence between you and the Chinese foreign office upon the question of the continued residence in Peking of foreign merchants who located there during the occupation of that place by the allied forces.

The Department approves your reply to the Chinese foreign office, as given in the inclosure to the dispatch.

I am, etc.,

Mr. Conger to Mr. IIay.

JOHN HAY.

No. 1372.

LEGATION OF THE UNITED STATES,
Peking, August 21, 1903.

SIR: Referring to my No. 779, of October 10, 1901, I have the honor to inclose herewith a copy of a note received by the dean of the diplomatic corps from Prince Ch'ing, advising that henceforth foreign merchants will not be permitted to buy property in Peking for dwellings or to establish places of business thereon. He says that since the occupation of Peking by the allied forces in 1900 such purchases have been agreed to by the Chinese officials as an exceptional arrangement, but that since conditions are now settled the old regulations ought once more to obtain, and such exceptional arrangements will no longer be made. * *

My own opinion is that it were better not to formally agree to their request nor to so flatly reject it as to compel a direct and definite determination. I have, therefore, since the note is addressed to the dean only, thought best to make no reply at present, but leave the matter open for such future discussion as events may require.

I have, etc.,

[Inclosure.]

E. H. CONGER.

Prince Ch'ing to the dean of the diplomatic corps.

I have the honor to call your excellency's attention to the fact that Peking is not by any means a treaty port. According to the treaties, it was originally agreed that merchants of the various nationalties should not be permitted to purchase houses, reside, or establish business houses here.

Since the coming of the allied forces to Peking in 1900, the merchants of their several nationalities have followed them here, have bought houses and opened places

to conform to the requirements of the treaties, and we must therefore clearly state at henceforth merchants of the various powers will not be permitted to buy any ore property in Peking for dwellings or to establish places of business, and should ere be any additional purchases of property and request be made for official stampgof the deeds our board will not again agree to any exceptional arrangement in

e matter.

As in duty bound, I send this dispatch to your excellency, the dean, and hope
at you will transmit it to the various ministers for their information that they may
nerally instruct the merchants of their several nationalities to take note thereof.
A necessary dispatch.

Kuanghsu, twenty-ninth year, sixth moon, 15th Day (August 7, 1903).

D. 718.]

Mr. Hay to Mr. Conger.

DEPARTMENT OF STATE, Washington, October 9, 1903. SIR: I have to acknowledge the receipt of your dispatch No. 1372, August 21 last, inclosing a copy of a note received by the dean of e diplomatic corps from Prince Ch'ing, advising that thenceforth reign merchants will not be permitted to buy property in Peking r dwellings or to establish places of business in that city.

The Department approves your course in not making any reply the note at present, but leaving the matter open for such future scussion as events may require.

I am, etc.,

JOHN HAY.

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See Foreign Rela

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