The Legal Obligations Arising Out of Treaty Relations Between China And Other States

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1 Cf. Art. 4, treaty (B) , appendix B, infra.
2 16 KuangliEu's New Laws and Ordinances.
( 149 ) Attitude of ^^^ 1906, the viceroy held that the alien's right Nanking applied only to a Chinese company in an open port, u)o^''°*'' ^'^^^ '^^*' °'^® operating in the interior. He alluded to '';"*'• Section IX of Article VIII of the British treaty of 1902, which reads as follows: — "An excise equivalent to double the import duty as laid down in the protocol of 1901, is to be charged on all machine-mad
...e yarn and cloth manufactured in China, whether by foreigners at the open ports or by Chinese anywhere in China The same principle and procedure are to be applied to all other products of foreign type turned out by machinery, whether by foreigners at the open ports or by Chinese anywhere in China." Accordingly, he suggested, the alien's right was confined to the open ports and no further. Besides, "the privilege of holding stocks in Chinese manufacturing companies established in the interior is the same as that of operating industries in the interior, inasmuch as foreign merchants could therefore not only share with Chinese merchants profits derived from such industries, but could even, by reason of their investments, control such Ciiinese companies in the interior, or, b}' fraudulent combination with unscrupulous Chinese merchants, establish independent factories in the interior for themselves." Decision of This opinion of the viceroy was referred to Peking, the Peking but there it was reversed.

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