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Leaving for all other countries only ~ S1,97l ,907


The returns for 1916 are not yet completed SO
lar as they 60 they indicate the same results What
then was the state Of the Chinese trade for the
year lS45!


The imports were, have been stated 500 3s6, 1884
Add the cost Of opium sold on British or Anne


rican account. ................... 30 000, ,000
Making together, TO be paid for either by exports


or Dy casn 43 1856, 7S4
Inc exports we have stated at 36,93l, 900
Leaving as a balance against the country and to


be provided for r.........-........... S6,465, 7s4


This has to be paid for in silver the unrecognis-
ed nature of the opium trade requires prompt set
tlement and this absorbs the silver to the great in
convenience of the general traffic of the Chinese
lea and silk fprm the bulk Of the exports from
China, and unless the demand for these in Europe
and America can be increased, and the import of
foreign goods and the consumption is not dimin-
ished, the question is, how long can the Chinese
sustain this annual drain of from gl 100000 to
go 100000 of silver!


England and the United States are the principal
consumers of Chinese tea and silks and il is evident
that the advantages which were so naturally ex-
pected from commercial intercourse with civilized
empire of three hundred millions of people, will be
practically limited by the extent to which those
countries are willing or able to consume the two
principal products of the soil of China. The ex-
ports oi silk from China steadily on the increase
the amount to England in 1916 being in value
gl,2l l,245 This article is not liable to any heavy
taxation either in England the United States, and
its increased demand will keep pace with the grow
ing wealth and luxury of those nations and progress
sively become an element of greater importance in
fhlaI ItI1gt,, oG. I'M
ever, be slow operation. and it is to tea and to its
increased consumption only that England must look
for the means of maintaining or if possible extend
ing its trade with this vast empire. This increased
consumption can only be caused either by an in
crease OF our population by reduction in its
price. Since the former would be too slow an ope-
ration to reach the emergency of the case the latter
means must be looked to- and this reduction of price
can only, say the committee, be produced by a re-
duction of the import duty upon it, which duty now
ranges from 200 10 $50 per cent. upon its first cost
that first cost being only from Sd. l0d. per pound
In the ports OF China, possible reduction Of that
cost would effect any purpose.


Now, the revenue derived from tea during the
last year amounted to 95,llO.s97, and it is too
large an item in the income of the country TO be
lightly dealt with. That the consumption of tea
has not reached its maximum, and that its not hav-
ing approxlmated more nearly to it has been occa-
stoned by It's high price, is evident, say the COM
mittee, from the following considerations In Eng
land, under existing duties, the average annual con-
sumption is only one pound ten ounces per head !;
in the Isle of Man, under lower duties, it is two
pounds ten ounces in Jersey and Guernsey four
pounds four ounces, and in Newfoundland and Aus
traa much larger. Again, the consumption of
coffee and cocoa, the duty upon which has been re-
duced from Is. to i'd. and I'd. per pound respec-
lively. has incrpacel tho fnrp,ar II,
per cent. whilst tea, the duty upon which has re-
manned, with ony slight alteration, has only ncreas
ed In consumption l30 per cent. yet even this in
creased consumption amounts to 24,000, 900 pounds
The committee believe that the cultivation of tea in
China may be indefinitely extended. After going
very elaboraely into all the arguments usually ad-
duced, the committee recommend considerable
reduction in the duty tea at the earliest praciica-
bic period This, they say :" is desirable in ITSELF
with view TO the comforts and social habits of
the people, as involving but temporary loss to
the revenue, and as essential to the extension of
our trade with China, nay, to its maintenance
at the point which it has already reached" The
committee appear to repudiate the idea of an al
Uatorem duty on tea, and recommend single fred
duty upon tea of all qualities attended with the
least commercial inconvenience, and having
greater tendency to draw better article into con-
sumption, as they say has been the case in many
other similar cases of taxation.


The provisions of the treaty have been, say the
Commissioners, all honorably carried out by the
Chinese, except at Canton, where difficulties have
arisen, which TO be attributed more to the tur-
buent character Of the people, and the weakness of
remote Government, than from the want of good
faith on the part of the ruling powers.


The port of Shanghai appears to be the most
formidable rival to Canton. Ii furnished $1,000
outof the 10000 bales Of silk and 10000 900 out OF
the 57,OO0,000 pounds of tea last year furnished
to the British market.


The next in importance is Annoy, which pur-
chased last year near g500,000 sterling of opium
and British manufactures and paid for nearly the
whole in silver.


With Ningpo and Foochowpoo the trade has
hitherto been very triAng. The opium trade, how
ever, already fourshes at the latter place, and is
attended with its usual demoralizing influences on.t
the people, and embarrassing effects upon the mo-
netary condition of the place.


Scientific surveys have been made of the coast
and some of the harbors, which are recommended
to be continued, and also the fixing of Buoys, bea-
cons, and moorngs.


The committee urge the establishment of post
Office by steamboats, from Hong Kong both to Can
ton and the northern ports.


Very little commercial advantage appears to have
been hitherto derived from Hong Kong; its position
is said TO be against it..


The remaindar nft nccur,;nI with