CHAPTER VII

THE POSITION AND WORK OF FOREIGNERS IN CHINA

The privileges of foreigners in China—The open ports and the

concessions—Great extension of privileges granted to foreigners by

the treaty of Shimonosaki (1895)—Opening of fresh ports—Facilities

conceded to commerce, and the right of establishing factories in

the Treaty Ports—The speedy effects of these concessions—Silk

industries—Chinese workmen: rise in their salaries—Prospects of

Chinese industry—Fresh concessions granted in 1898—Opening of the

waterways—Railways and mines—Great expectations resulting from

these additional treaties—The _likins_, or native

Custom-houses—Their oppressive exactions—Slow development of

foreign commerce in China—Necessity for Europeans to penetrate

into the interior and take their affairs into their own

hands—Chinese resistance to this proposal.

Foreigners who live in China, with the exception of the missionaries,

are at present penned up in the twenty-six open ports, to which may be

added six other towns or markets, situated on the frontiers of

Indo-China, assimilated to the free ports, but doing a very limited

trade. In each of these so-called open ports[26] spaces have been let on

long leases, or even sold to foreign Powers—England, France, the United

States and of late years even Germany, who has acquired a concession at

Tien-tsin, where, by the way, Japan also has one. Although these

concessions are on Chinese territory, they are considered as so many

small republics, independent of the native authorities, and administered

by Europeans, who reside there under the protection of their Consuls,

who hold both judicial and executive powers. In these ports, protected

by European law, is concentrated the whole foreign commerce of China.

The appearance of these treaty ports varies according to their

importance, from the few houses surrounded by walled-in gardens, built

on the sands of Pakhui to the flourishing cosmopolitan port of Shanghai,

whose aspect is admirably calculated to flatter the vanity of Europeans.

Once the bar of Wusung is passed, after some hours’ journey down the

Blue River, whose shores are covered with monotonous rice and cotton

fields, the traveller might easily imagine that he was in Lancashire, so

great is the number of factory chimneys that come into sight. The

landing-place, or Bund, the principal thoroughfare of the town, which

follows the quay, is lined on the one side with trees, and on the other

by magnificent houses, built in the European fashion, the offices of the

principal banks, steamship companies, etc. The other streets, inhabited

by Europeans, although not very straight or broad, run either parallel

to the Bund or else meet it at some point or other. Further inland is

the Chinese quarter (within the concession), with its open shops,

monstrous and gaudy signboards, and its fragile paper lanterns, fairly

well kept, however—thanks to European supervision—and forming a marked

contrast in this respect to the other native quarter beyond the

concession, which is absolutely filthy. Once outside the town, we cross

the cricket-field, the racecourse, the lawn-tennis court, and reach

Bubbling Well Road and other wide avenues, fringed with the beautiful

villas, surrounded by gardens, belonging to the wealthy European

residents.

Before the Chino-Japanese War foreigners only had the right to carry on

their commercial undertakings in the open ports, and had to have a

passport in order to travel in the interior. Isolated as much as

possible from the native population, they could traffic with the Chinese

only on the condition that they never attempted to alter any of the

native methods of production, or introduced any European innovations, or

endeavoured to exploit a single one of the innumerable natural resources

of the country.

On the other hand, nothing was to be expected from private initiative or

from the Government, which latter would unquestionably have vetoed any

improvement, and only reluctantly permitted, on account of its political

value, the creation of the telegraph-line connecting Peking with the

extremities of the Empire. In 1877 the Europeans had actually to pull up

the rails laid down on the short line between Shanghai and Wusung, and

though the Chinese since 1889 have pretended to consider the

construction of a line from Hankow to Peking, it has only been with the

object of misleading the Europeans. No progress is possible in China

under these unfavourable conditions, and the antiquated methods of the

natives continue to hamper all commercial and financial prosperity.

The treaty of Shimonosaki, signed in 1895 at the close of the war

between China and Japan, effected some very important changes in this

respect, and in virtue of the most-favoured-nation clause, inserted in

the treaties with the Powers, opened out a better prospect for

foreigners of every nationality, who were thus able to benefit by the

advantages conceded to the Japanese. Article 6 of this important

document stipulated the opening of several new ports, and permits steam

navigation along the coasts and up the rivers and canals leading

thereunto. It goes on to declare that foreigners may visit the interior

to purchase or sell merchandise, and that Japanese subjects may

establish depots for the same wherever they like without paying any

extra tax, and erect factories of all sorts in the Chinese open towns

and ports, and import into China all kinds of machinery on payment of a

fixed tariff. Goods manufactured by Japanese subjects on Chinese

territory should be placed on the same footing with respect to inland

and transit duties and other taxes, charges, and facilities for

warehousing, etc., in the interior, as goods imported into China by

other foreigners, and enjoy the same privileges.

This clause is of very great importance, since it permits the

combination of highly-perfected European machinery and cheap Chinese

labour in the production of articles the raw materials for which,

especially silks and cotton, can be obtained in the immediate

neighbourhood of the free ports. The clause above cited may appear at

first somewhat extraordinary, and in any other country but China it

would be superfluous to stipulate that goods manufactured in the country

itself should not be treated with less consideration than similar

articles imported. But the Japanese negotiators understood their men,

and are perfectly aware that if they had not inserted these special

clauses, the advantages obtained would have been annulled by the Chinese

authorities by a system of arbitrary taxation and other vexatious

measures.

No very long time elapsed before the advantages of Article 6 of the

Shimonosaki Treaty were made strikingly evident. In three years’ time an

entire district of Shanghai was occupied by not less than nine large

cotton factories, working 290,000 spindles, which in 1898 were increased

to 390,000, and close to them presently rose some thirty silk factories,

which, in due time, will be considerably increased both in numbers and

importance. In the other ports this industrial impulse has not yet been

much felt, except at Tien-tsin, where a woollen factory has lately been

established. In that great centre of industry, Shanghai, a certain

falling-off has been observed in this extreme briskness, due to

over-production, and also to a very legitimate desire to watch the

results of industries already existing before launching into further

speculations. Then, again, there was a fear that wages might presently

rise to an exaggerated extent.

The labour market of China is undoubtedly enormous, but the supply does

not respond as readily to the demand as in Europe, because the distances

are great and the means of communication correspondingly few and

difficult. However, the labourers living on the banks of the Yang-tsze,

who are called ‘Water-fowls,’ constantly flock into Shanghai in search

of work. They belong to that class of poor creatures who crowd the great

Chinese cities, and whose only home is their sampang, in which an entire

family accommodates itself in a space that would barely suffice for a

single European. One can see their floating huts moored alongside the

_arroyos_ that furrow the suburbs of Shanghai. Once they begin to earn a

little, they build a hut on shore, using up the material of their old

boathouse, until they can erect something better by way of a dwelling.

Salaries are distinctly rising in Shanghai, and when I was there in 1898

the factories were wrangling over their workmen and women—who are in the

majority—in consequence of certain enterprising but unscrupulous

managers of rival firms intriguing, by offers of higher wages, to induce

the most skilled to leave their employers and come to them. The quality

of the labour at Shanghai appears to be satisfactory, at least, so say

the different managers, and in the manufactories which I visited I

noticed that everything was scrupulously clean and orderly, quite as

much so as in any average European or American factory of the same

class. The workgirls do not live, as in Russia and Japan, and, indeed,

as they did formerly in England and in other manufacturing countries, in

a building near the place of business set apart for the purpose, and at

the expense of the firm, but at home with their own families. Many of

them are married women, and a great number, instead of leaving their

little girls over ten years of age at home, request that they may be

employed, so as to remain under their supervision. They are usually

engaged on very light work, such as shifting the cocoons in the boiling

water for the weavers. In the silk factories I visited they were allowed

half an hour every day for what was known as ‘school,’ during which some

senior workwoman—the mother or the elder sister—taught them the

rudiments of their work. This system is excellent, and the managers

declare themselves highly pleased with it, as it is likely to train good

workers.

The working hours at Shanghai in the silk factories are usually from six

in the morning to six in the evening, including an hour and a half for

meals. In the silk manufactories the little girls earn 1¼d. per day at

first, which is increased to 2½d. after a short time. A clever workwoman

gets about 9d. In 1891–92 the wages in the same factory, which was then

on a very small scale and under a Chinese name, were about 30 per cent.

less. In the larger factories the children got 2½d. a day and the women

from 6d. to 7d. During the first few months that elapsed after the

signing of the Treaty of Shimonosaki salaries were on an average about

5d. As exchange has not varied much since then, the rise is very

considerable. ‘The women and children now working in the better

factories here,’ says the British Consul at Shanghai in his Report,

1897, ‘can now earn from 10s. to 30s. a month, which is quite a fortune

for people who in the native factories rarely make more than 4s. a

month, although they work hard all day!’ The same Report observes that

in certain branches of industry the Chinese workwomen earn more than

would the same class in Italy. The under-manager who took me round one

of the Shanghai factories, a Peruvian by birth, and, I fancy, a coloured

man by origin, judging from his curly hair and high cheekbones, told me

that in his boyhood in Peru he had earned 2½d. a day at the same

business, which is what is paid to child-workers in Shanghai.

It is, therefore, a distinct mistake to imagine that China is destined

to remain the land of low salaries. Some considerable time may elapse

before wages reach the high figure obtained in Europe, but there is

every prospect that in the course of time a very considerable rise will

take place, especially as industry improves, and the demand for skilled

labour increases. The Celestials are pretty sure to look after their own

interests in the matter by forming trades unions. Strikes are not

unknown either in China or Japan.

These facts tend, I think, to dissipate, if not entirely, at any rate in

part, the illusion about the famous ‘Yellow Peril’ which has so greatly

disturbed certain worthy people. That ‘peril’ seems to me to be still

remote, for, even if the people of the Far East did succeed in producing

nearly all the articles which they now import from Europe, it would

necessarily follow that the trade in them, being infinitely greater than

it now is, would increase their profits likewise very considerably. It

is equally certain that the first effect of the introduction into China

of European industries must lead, as it already has done, to the

bettering of the condition of the Chinese labouring class, both by

augmentation of wages and consequent improvement in manner of living.

If, therefore, European export trade may apparently suffer from the

manufacturing of goods hitherto imported by the Chinese, such as

cottons, for instance, matters will balance themselves eventually for

the simple reason that, the richer the Chinese get, the more they will

buy. Japan has already shown how the introduction of machinery has

created a new branch of import of great value.

In order to realize these brilliant prospects, several very drastic

alterations in the present position of affairs are needed. The

permission, granted at the instance of Great Britain in 1898, allowing

European navigation on the inland waters of China, and the concessions

for the creation of railways and exploitation of mines, may subsequently

lead to very remarkable results, but up to the present they have not

been entirely successful. Industrial activity is still limited to the

free ports and their immediate vicinity. The reasons for this state of

affairs are worth examining, especially as they illustrate the

determined opposition of the Chinese authorities to all measures of

reform, and also indicate many points against which Europeans should

complain.

The Chinese Custom-house duties were determined according to the

treaties as much as possible 5 per cent. _ad valorem_. They may

therefore be safely described as comparatively light, and are collected

with great regularity for the Imperial Government on the European system

by a staff admirably organized by Sir Robert Hart.

The undesirability of exposing foreign merchants to the arbitrary and

corrupt methods of Chinese Custom-house officials led to the formation

of an international staff of officers, which works perfectly and gives

universal satisfaction. On the other hand, the great native firms are

most scrupulously honest in all their transactions, having discovered

from experience that ‘honesty is the best policy,’ and European

merchants can only praise their way of transacting business. It is,

therefore, neither on entering nor leaving China that difficulties

occur, whether for importation or exportation. The trouble arises in the

transport between the open ports and the places of consignment or

expedition; the principal grievance arises through the system of

_likin_, or of inland Customs, whereby an arbitrary and variable scale

of taxation is exacted on goods passing through towns or over the

frontiers of the various provinces, or even at certain determined places

on the highroads and rivers. This pernicious system is a great drawback

to the expansion of European trade, and gives rise to endless bother and

expense.

‘Let us suppose,’ said a gentleman, thoroughly acquainted with commerce

in the Far East, at a meeting of the London Chamber of Commerce in 1898,

‘that a train going from London to Newcastle had to be stopped three or

four times on the way, so that goods might be overhauled and examined by

officials whose main object is to extort as much as they can in their

own interests, and who value goods arbitrarily at sight. Imagine, for

instance, a consignment of skins getting damaged by the rain through

careless packing, and on being weighed found heavier than declared in

the invoice: the result is, that the luckless owner is charged, not

according to the increased weight, but _fined_ according to his personal

property, say £50 or; £100 on £1,000! Or, finally, what would become of

British trade if we had to put up with _likin_ officials, one of whom

examines goods once in every three days, and another announces his

intention of only doing so when ten trains have arrived?’

There is a remedy for the _likin_ system, and that is a ‘transit pass’;

but more often than not, as with most things in China, this is merely a

theoretical improvement. On payment of a sum equal to half the original

entry duty, all imported goods should be considered free of inland duty.

But this regulation does not work, and no one avails himself of it,

since the Chinese very ingenuously manage to evade it by charging ‘a

duty on arrival at destination,’ which comes to the same thing.

It is not therefore surprising that, with all these drawbacks, in

addition to a very rudimentary monetary system, Chinese commerce only

attains £50,000,000, of which £27,200,000 represents imports, which is

very small when one considers the enormous size of the country and its

great wealth. The half of this commerce is divided up between four

articles: £8,000,000 cotton and £4,800,000 opium (imported), and

£8,000,000 silk, and £5,000,000 tea (exported). The last figures are

inferior to what they formerly were, Indian tea having greatly affected

Chinese tea as far as England is concerned. Its preparation still

follows the old system, and its lasting quality is distinctly inferior

to Ceylon and other teas grown in India. This is another example of the

vast importance of introducing into China better and more scientific

methods.

The export trade of China must inevitably remain very limited so long as

foreigners are prevented from penetrating into the country and directing

the exploitation of its resources. Whilst it was a mere matter of

opening a few ports, the Chinese Government made no very serious

opposition; but only the realization of its incapacity to resist

pressure induced it to permit the introduction into the Celestial Empire

of foreign capital, machinery, and industrial methods. Well may we ask,

Can the Sick Man of Peking endure such violent treatment? Will he not

succumb to the very powerful remedies that are being administered to

him, and thereby fulfil the secret wishes of those who are anxious for

his legacy?

The Awakening of the East: Siberia—Japan—China · 第 7 / 11 章