ABSTRACT

The Chefoo Convention, signed in 1876, apparently aimed to prevent the abuse and to re-affirm the privileged position of the British merchant. Although the motive of the foreigner, in forcing these early treaties upon China was to facilitate trading with the Chinese, nevertheless, a consequence of their conclusion was interference with the fiscal system of the Chinese State. The foreigners regarded these as artificial restrictions upon the free exercise of their trading rights. There were four distinct financial problems which the foreigners desired to have solved: the import and export Customs, the internal Customs, the coast trade duty, and the frontier duties. A certain number of articles of import intended for the use of foreigners were exempt from duty. The foreigners were able to decide whether to use the Shanghai system in the other ports or to allow them to remain as they were and to revert to the old practices in Shanghai.