Mr. Grosvenor to Earl Granville.—(Received January 22, 1883)

(No. 147)
Peking, December 4, 1882

My Lord,

I HAVE the honour to forward to your Lordship herewith a translation of the Regulations lately drawn up at Tien-tsin between the Corean Envoys and two Chinese officials acting under the orders of his Excellency Li Hung-chang, in his quality of Imperial Commissioner for Trade at the Northern Ports. These Regulations define the conditions under which the subjects of either Power may resort to each other’s country for purposes of trade.
I have the honour to forward the translation at once to your Lordship without further remark than that his Excellency Li Hung-chang would appear, according to these Regulations, to intend asserting a position for China in Corea more favourable than that accorded to the other foreign Powers who have already signed Treaties, and expressly to guard himself against the application of the most favoured-nation clause which Corea grants to China. That such a pretension as this, which is arrogantly put forward in the preamble of the Regulations, will be admitted by the other Powers who have signed Treaties with Corea, seems to me to be very doubtful.
The translation of these Regulations only reached me yesterday, and I have consequently not the time necessary before the departure of this day’s mail to subject them to a careful comparison with the Treaty signed by Admiral Willes.
I am indebted to Mr. Brenan, Acting Consul at Tien-tsin, for the translation of this important document. .

I have, &c.
(Signed)　　T. G. GROSVENOR

Inclosure in No. 7

Regulations for Trade between Chinese and Coreans,camed on by Sea.

(Translation)

COREA has long been considered a feudatory country, and all matters of ceremonial are by law prescribed. No change is called for in this respect, but as foreign ‘Powers are now to engage in maritime trade with Corea, it becomes necessary to rescind the prohibition against intercourse by sea, so that natives of both countries may similarly engage in commerce, and share its advantages. The Rules regarding trade over the frontier also require modification. The Regulations now framed respecting trade both by land and by sea are due to China’s wish to treat a tributary State with special favour, and are not such as other countries may claim the benefit of.
These Regulations are as follows:-
No. 1. The imperial Commissioner for the North will appoint Commercial Agents to reside at the open ports of Corea for the purpose of looking after Chinese merchants. These Agents, in their relations with Corean officials, will be on terms of equality, and they shall be treated with courtesy. Should any question of importance arise, these Agents shall not take upon themselves to settle it with the Corean officials, but shall refer to the Imperial Commissioner for the North, who will address the King of Corea on the subject, so that be may instruct his Executive Council how to deal with the matter.
The King of Corea will likewise appoint a high official to reside at Tien-tsin, as well as Commercial Agents to reside at the open ports of China. These Agents will be on a footing of equality with the Chinese Taotais, Prefects, and Magistrates at the several ports.
Should any difficult question arise, they shall be at liberty to refer it to the Corean high official at Tien-tsin, who will request the Imperial Commissioner for the North, or for the South, as the case may be” to settle the matter. The Commercial Agents of the two countries may not levy contributions, but shall defray their own expenses. Should any such official act in an improper rn.anner he will be recalled immediately the Imperial Commissioner for the North represents the case to the King of Corea, or vice versd.
No. 2. Disputes arising between Chinese subjects at Corean ports shall be referred to the Chinese Commercial Agent for settlement. In all civil and criminal cases, if the plaintiff is a Corean subject and the defendant a Chinese subject, the case shall be dealt with by the Chinese official; if the plaintiff is a Chinese subject and the defendant is a Corean subject, the Corean official shall produce the accused and, together with the Chinese official, try the case according to law. Corean subjects at Chinese open ports shall, in all civil and criminal cases, no matter what is the nationality of the plaintiff or defendant, be tried by the Chinese authorities, who will send a report of the case to the Corean Agent. Should the Corean subject be dissatisfied with the decision, the Corean Agent may request the high authorities to rehear the case.
Should Corean subjects, in their own country, have occasion to lay a plaint against a Chinese subject at the office of the Chinese Agent; or, in China, to make complaint at the office of a Chinese official, the Court underlings shall not extort fees of any kind. Offenders in this respect shall be severely punished by the official under whom they are serving. Subjects of one country who, having committed an offence against their own laws, either in their own country~ or at the open ports of the other country, take refuge in the other country, shall be delivered up by the local authorities to the nearest Commercial Agent for conveyance to their own country, on representation being made by the Commercial Agent of the country interested. While being so conveyed, however, the prisoner shall only be subjected to restraint, and shall not be exposed to any cruel treatment.
No. 3. The ships. of either country may frequent the open ports of the other for purposes of, trade, under the Regulations already agreed upon affecting the loading and unloading of merchandize and the payment of maritime duties.
Vessels which may be stranded on the shoI:es of either country may remain there to buy provisions or effect repairs, but any outlay shall be at the expense of the master of the vessel. Should any vessel break up, the local officials will give assistance, and send the passengers and crew to the Commercial Agent at the nearest port for conveyance to their home, and thus avoid the expense hitherto incurred in sending back distressed subjects to their own country. Except in case of vessels wrecked or seeking repairs, any ship of either country proceeding to a non-open port for purposes of trade shall, with her cargo, be confiscated. Fishing craft, however, of either nation, from the coast of Corea, or the shores of Shantung or Féngtien, may come and go at pleasure in pursuit of their avocation, and may purchase provisions or water ashore. They may not carryon a clandestine trade, and boats so offending will, with their cargo, be confiscated. Persons guilty of offences at such places shall be apprehended by the local authorities and sent to their national Agent at the nearest port, to be punished in accordance with Article No. 2. After the expiration of two years, Rules shall be framed regulating the fish duties to be paid by the fishing-boats of either nation. [Owing to the fish having been frightened by steamers over to the opposite coast, Shantung fishermen go by thousands to the islands on the Coast of Corea.]
No. 4. Subjects of either Power resorting to each other’s country for purposes of trade, being well-conducted persons, shall be at liberty to rent land and premises, or build houses; and also to trade in local produce, and any merchandize, not contraband. Imports and exports shall pay duty and vessels shall pay tonnage dues as specified in the Maritime Customs Regulations. Merchandize may also be carried from one port to another on payment of a half import duty at the time of reimportation, in addition to the export duty already paid at the time of exportation. Corean subjects are by law allowed to trade at Peking, and Chinese subjects to open establishments at Yanghua and Chinghan in Corea. But this apart, they are not allowed to convey merchandize into the interior.
Subjects of either country may proceed into the interior to purchase native produce, provided they first obtain a pass in the joint name of their Commercial Agent and the local official, specifying the place where the produce is to be purchased. The horses, carts, or boats shall be hired by the purchaser, who will also pay all li-kin and duties leviable en route.
Persons intending to travel in the interior may do so upon obtaining a passport in the joint name of their Commercial Agent and the local official. Should such persons while travelling be guilty of any offence, they shall be sent by the local officials to the nearest port, to be there dealt with as provided in Article No. 2. While being so sent they shall merely be kept under restraint, and shall not be exposed to any ill-usage.
No. 5. The trading stations hitherto existing on the frontier, such as Yi-chou, Huining, and Ch'ing-yuan, have been under the control of officials, a system which gave rise to many difficulties. It is now proposed that at Cha-men and Yi-chou, on the opposite bank of the Ya-lu River; and at Hun-ch'un and Hui-ning, on the opposite bank of the T'u-nien River, the people shall be at liberty to trade as they please. At the marts thus opened Customs stations shall be established for the detection. of bad characters and for the receipt of duties. All merchandize, imported or exported, with the exception of red’ ginseng shall pay an ad valorem duty of 5 per cent. The system of fees for the maintenance of the stations hitherto in force shall be abolished. Civil and criminal cases shall continue to be dealt with by the officials of either country as the law directs.
Special and detailed Regulations cannot be put in force until the Imperial Commissioner for the North and the King of Corea each send officers to the spot to draw up these conjointly; after which they shall be submitted to the throne for approval.
No. 6. Munitions and implements of war and opium, both foreign and native, may not be imported for sale by the subjects of either country, at any port or at any place on the frontier. A breach of this Regulation will lay the offender open to the infliction of the severest penalty.
Corean merchants are allowed to bring red ginseng into China on payment of an ad valorem duty of 15 per cent. If Chinese subjects are detected in conveying ginseng out of Corea. without the express permission of the Corean Administration, the goods shall he confiscated.
No. 7. Postal communication between the two countries has been hitherto carried on overland by way of Cha-men at great expense. Now that communication by sea is allowed, it is expedient to profit by this more convenient way. Corea, however, having no merchant or war steamers at present; the King of Corea may apply to the-Imperial Commissioner for the North to detail a merchant steamer to come and go once a-month, the Corean Administration paying a certain sum as subsidy. But Corean officials will no longer have to supply the wants of Chinese men-of-war which may cruize on the coast of Corea or anchor in her ports for her protection. All expenses for provisions and stores shall be defrayed by the ships. The Commanders of such ships and their subordinates shall have intercourse with Corean officials on terms of equality. The officers of the ship shall exercise strict control on sailors going ashore, and prevent them from causing any disturbance.
No. 8. These provisional and brief Regulations are to be strictly conformed to by both officials and people of either country. Should it hereafter become necessary to make any alterations, the Imperial Commissioner for the North will consult with the King of Corea, as the occasion requires, and submit any change for the approval of the Throne. The above Regulations have been framed by the Corean Envoy Chao Ning Hsia, the Corean Assistant Envoy Chin Hung Chi, and the Coreanofficial Yu Yûn-chung, in consultation with Chou Fu, Customs Taotai at Tien-tsin, and Ma Chien-chung, an expectant Taotai, all acting under the instructions of Li, Acting Imperial Commissioner for the North, &c.