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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 daly 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.

SHENG HSÜAN-HUAI.

LÜ HAI-HUAN. Subject to the approval of His Imp. & Roy.

Apostolic Majesty's Government E. v. HIRSCH.

Ad referendum D. SIFFERT.

DR. BOYÉ.
Jas. L. MACKAY.
E. Hioki.
M. ODAGIRI.

J. YANAOKA.
Ad referendum advocaat F. B. v'JACOB.

JOHN GOODNOW.

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.

Shanghai Aug. 29th 1902. Your EXCELLENCIES,

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 fide 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 Inperial Maritime Customs at his discretion in accordance with

the instructions issued by him subsequent to the Final Protocol of the 7th September 1901. We have the honour to be, Your Excellencies' obedient servants

(signed)

HIRSCH (signed)

D. SIFFERT (signed)

DR. BOYÉ (signed)

Jas. L. MACKAY (signed)

E. HioKI (signed)

J. YAMAOKA

Advocaat (signed)

F. B. v JACOB (signed)

D. SIFFERT (signed)

John GOODNOW

DUTY FREE LIST.

Vide T. G. Circulars Nos. 979, 984, 1016, 1020, 1022, 1025, 1026. Instructions received. 12th Oet. 1901. 1. Foreign Rice, cereals and flour, gold and silver

coined and uncoined. 12th Oct. 1901 2. Legations supplies from abroad. 7th Nov. 1901 3. Supplies for the use of Foreign forces Military and

Naval. 19th Apl, 1902 4. Official stationary actually transmitted by foreign

Government Departments for Foreign Consulates. 1 May, 1902 5. Supplies under Government stores Certificates. 31 May, 1902 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. 3 June, 1902 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. 3 June, 1902 10. Clothing, books, pictures and furniture already in

use when brought in by residents and not for sale. 31 May, 1902 N. B. Ships Coal and provisions are entitled to draw

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

10th May, 1902

12th Oct, 1901 3 June, 1902

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 question 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 Ch'ing 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,

Your HIGANESS 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 dif

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 he correct, then, of course, citizens of the United States have

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.,

John HAY.

Mr. Conger to Mr. llay. 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.,

E. H. CONGER.

[Inclosure.] Prince Ching 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 of business in great number. Moreover, some have sent the deeds to the places bought, transmitting them through their ministers in Peking to our board to be for. warded to the prefect of Shun-t'ien Fu with fees for his seal, and our board has in each case made an exceptional arrangement and consented, but now, the general aspect of affairs being settled, we ought naturally to return to the old regulation, so as to conform to the requirements of the treaties, and we must therefore clearly state that henceforth merchants of the various powers will not be permitted to buy any more property in Peking for dwellings or to establish places of business, and should there be any additional purchases of property and request be made for official stamping of the deeds our board will not again agree to any exceptional arrangement in the matter.

As in duty bound, I send this dispatch to your excellency, the dean, and hope that you will transmit it to the various ministers for their information that they may generally 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).

Mr. Hay to Mr. Conger. No. 718.]

DEPARTMENT OF STATE,

Washington, October 9, 1903. Sir: Í have to acknowledge the receipt of your dispatch No. 1372, of August 21 last, inclosing a copy of a note received by the dean of the diplomatic corps from Prince Ch’ing, advising that thenceforth foreign merchants will not be permitted to buy property in Peking for dwellings or to establish places of business in that city.

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

John Hay.

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