In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:
In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:
And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.
This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.
Terrero.
Office of the Governor-General of the Philippines.
Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:
Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able direction of your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.
In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.
In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are masters of the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions as the other, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay the cédulas[70] of the class to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused by juramentados or by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.