CHINA: Customs Proposals

Despatches from China last week were concerned almost exclusively with the Customs Conference at

Peking (TIME, Nov. 2). The movements of the great rival War Lords, Wu and Chang, remained shrouded in obscurity in the interior; and General Feng, so called “Christian protector of Peking,” was contradictorily reported to have cast in his lot with Wu and with Chang.

The Customs Conference proceeded with its sessions in the magnificent Winter Palace of the old Forbidden City. And the delegates, secretaries, assistants, representing the U. S., Britain, France, Italy, Belgium, the Netherlands, Portugal, Japan and China*— with those of Norway, Sweden and Denmark participating by special adherence—swelled the assembly to well over 500 persons, of whom more than half were Chinese, all but one Occidentally clad.

The Chinese Foreign Minister, Sen Jui-lin, spoke to the delegates in general terms and deplored the fact that China, “a sovereign power,” should be restricted in setting her own tariff schedules. Marshal Tuan Chi-Jui, “Chief Executive” of China, delivered himself to much the same effect. Then up rose Dr. Cheng Ting Wang, a graduate of Yale University, sometime Premier and Foreign Minister of China. In loud clear tones, speaking in flawless English, he outlined China’s specific proposals to the Powers:

1) The Powers are asked to give China complete tariff autonomy, which she has not enjoyed for the better part of ae century.

2) In return China offers to abolish “likin.”*

3) It shall be agreed, as an integral part of this arrangement, that China shall enforce a National Tariff Law not later than Jan. 1, 1929, with the consent of the powers, raising tariff schedules to between 7½% and 40% for most imports and to between 50% and 80% for luxuries.

4) In the interim before the enforcement of the new law a surtax, in addition to the present uniform 5% tariff, shall be levied as follows: 5% on ordinary goods, 20% on luxuries, 30% on wine and tobacco.

The Replies of the Powers, in view of the present highly complicated situation in China, were disappointingly guarded. Keynotings—John V. A. MacMurray (U. S.) : “The Government of the United States is prepared to consider open-mindedly and generously any reasonable plan with a view to realizing China’s aspirations”; Eki Hioki (Japan): “China can expect to reach her goal only by successive stages. . . .The granting of tariff autonomy presupposes a strong, unified Chinese Government”; Sir Ronald Macleay: “Great Britain is prepared to discuss tariff autonomy either at this conference or at a later one.”

The Chinese Press was generally unfriendly toward the conferees, and reflected less violently the attitude of 2,000 Chinese students, who rioted and reviled the Chinese Government for “inviting” the Powers to Peking under the Washington treaties, which envision the addition of a surtax of only 2½% on everything but luxuries, and only 5% on them.

Said the Chen Pao (organ of War Lord Wu): “Britain is going to shelve our demands. Let us withdraw now.”

“Added the non-partisan Yi Shih Pao: “The tariff autonomy proposal is a mere formula. . . .The result of the conference is easy to predict.”

An irrepressible Chinese delegate declared: “We have the Powers on the run and we know it!”

Meanwhile the formal sessions of the conference have given way to deliberations among the experts.

*Signatories to the Nine-Power Washington Treaty, to which the Scandinavian countries have given “special observance.”

*”Likin” is the tax collected on goods in transit through China at numerous towns and “barriers.” Literally “likin” means “the contribution of a thousandth part.” Actually it often totals 20% of the value of goods in transit for any great distance. Theoretically foreign goods are exempt from “likin” taxation, but the wily and corrupt tax gatherers are said to collect it very generally on all goods.