November 11, 1907.]
We would therefore request you to give this important question promp attention and lay the matter before the Government or fake such other steps as may appear advisable to your Committee. We have the hon ur to be, Sir, Your obedient servants,
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David Sassoon & Co., Ld,
. M. H. NEMAZER, PHIROZ HA B. PETIT & Co.
Shanghai 27th June 197. DEAR SIR,-We beg to bring to your rotice the following:-
Some of the Chinesa Opium dealers here have received information from their con. stituents in Nanking that the Viceroy here intends granting the monopoly of the Opium trade in Nanking to a few dealers, who only will be allowed to import Opium here, So far no official notification has been issued, but as there is every probability of is coming into forc at any moment, and subsequen ly a sim lar monopoly is intended to be giver here and elsewhere, we think it advisable to lay the matter before you so that immediate steps may be taken tato its baing curried into ffct. Such monopolis would prevent other dva ora from participating in the Opium Trade thus destroying the healthy competition and thereby crippling the business and causing heavy losses to importers who will be at the mercy of a few who hold the monopolies, as regards prices etc.
It would also be greatly prejudicial to the | interest of the Indian Governme t if such a scheme is permitted to bent reed specially in the present uns-tiled and unsatisfactory state of the Opium tra le owing to the action of the Chinese Government in closing up the ublic smoking dens, and importers, in view of the far ther uncertainty of demand from those who would bold the monopoly, would curtail importation, which would m-au a material reduction of their purchases from the Government of India's monthly sales.
We therefore beg to request you to be good Anough to take immediate action and oppos the movement and, if necessary, to commu. nicate with H. B. M.'s Minister at Peking, as it is in contravention of Article X of the treaty of Nauking of 1812, which provides that British merchaud s having paid the re galated Customs and dues such merchandise may be couveyed by Chinesa merchant to any province or city in the empire of China. The said monopoly, if granted, would ther-fore b tau amount to placing restrictions on Chinese merchants in general, We may add that we are afraid, if the monopoly is given, that the Chinese Officia's may push the consumption of rative Opium to the detriment of foreign drug, We remain, Sir.
Your most obedient servants. (-igned) DAVID SASSOON & Co. Ld.
E. D. Si88OON & Co.
To
E. PABANEY. CAWASJEE PALLANJEE & Co. S. J. DAVID & Co.
TATA & Co.
A EBRAHIM & Co.
D. E. J. BRA IM & Co. P. B. PETIT & C
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TALATI & Co, and others.
Sir Pelham L. Warren, K.C.M.G.,
H.B.M.'s Cousal General,
Shanghai
Shanghai 11th July 1907.
E. B. SKOTTOWɛ, Esq,
Chairman, China Association, Present.
OPIUM MONUPOLY.
CHINA OVERLAND TRADE REPORT.
DEAR SIR,- We beg to enclose herein translation of three article which apeared in Chinese newspapers on diffrent dates, from which you will obs-re that the Vic-ray of Nanking is making rapid preparations to take, on behalf of the Chinese Goverum-ut, the mono. poly of Opinm. This, if allowed to come ipt. force, would destroy competition and thereby cripple the trade and is in direct contravention of article 14 of the Treaty of Tientsin of 1854 (ratified in 1860) between France and China, which is as follows:-
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"No privileged commercial society shall henceforth be stablished in bina, and the nam shall apply to any organised coalition having for its end the exercise of a monopoly of trade. In case of, the contravention of the present
article the Chinese Authorities, on the re- presentation of the Consular gent, shall advise as to the means of dissolving such associations. of which they are also bound to prevent the existence by the proceding prohibitions, so as to remove all that may stand in the way of free competition".
This treaty also affords protection to us under the favoured nation clause.
We may also quote article V of the Treaty of Nanking of 1842, which is as follows :
The Goverment of Chia having c mpelled the British merchant trading at Canton to deal exclusively with certain Chinese merchants called Hong merc'an's (or Co-Hong,) who hid been licensed by the Chinese Gaserument for this purpose, the Emperor of China agres to abolish that practice in fature at all ports where British merchants may reside, and to permit them to carry on their mercautile transaction with whatever persons they please."
We may rate that a tel-gram has been dispatched yesterday to Messrs. David Sassoon & Co, Ld, in Loudon to promptly protest 10 the Foreign Office, on b-half of importers, against this monopoly, and we would request you to take this matter up and wire to your Association in London to communicate with the above mentioned firm, with supply of full par ticulars regarding this question, We shall be pleased to hear from you, at your earlies couvenienc, that you are wiring to London to tak- immediate action, as the question requires prompt attention. On hearing from you that you are willing to accord us your support!, we shall w`ro to London to pu' at the disposal of your A-sociation all particulars relative to this question. We shali ba glad to defray tele graphic and other expenses incurred by the Association regarding this matter,
We may mention that H.B.M's Consul General bere has received from the Consul of Naking cufi nation that a monopoly is being formed and has already wired to B.M's Minister at Peking, but so far no reply has been received,
Yours faithfully, (Signed) DAVID S SSN & CJ. Ln
E. D. SASSOON & CO. S. J. DAVID & Co.
Shanghai 2nd Augus! 1907,
PIUM ONOPOLY.
SIR,With reference to the several inter views which the representatives of the Si83000s had with you, ou our behalf regarding the above important subject, wa now beg to enclose a translation of the latter which our Chinese dealers have addressed to us, from which you will observe that if the monopoly comes into fro they may not be able to fulfil their ou' standing contracts with us as their Opium will not have the same outlet as hitherio. Their previous purchases of Opium which are y-t| uncleared, now stand at ab ut 2500-30 chosts of the value of about two million ta ds.
Since the mpopo ́y question sprang up the market has been slumped to the extent of about Tls. 70. per chest, notwithstanding the re- duction of sale by the Indian Govern ent of 4 t chests monthly commen ing from last month, which should have had the contrary effect,
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Poppy cultivation. request you to take immediately such action as you deem necessary to bring the monopoly to a speedy termination, and would be you to give us, as soon as possible, information as to the re-ult of your totion, so that we may know how to regulate our purchases at the Government of India's monthly auction sales,
We remain, Sir,
We therefore earnestly
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Your most obedient servants, Sir PELHAM WARREN K.C.M.G. [Signed by the merchants.]
EXTRACT FROM "SIN WAN PAO."
Proposed establishment of Gove nment Opium Monopoly Bureau.
With reference to our report concerning the closing of Opium shops at the various places in Nanking and the appointment of an inspector to make enquiry regarding the Opium shops, so as to btain a list of the Opium shopkeepers and employees, which will be submitted and filed for reference, and the funds for carrying out the scheme had already bn pepired by the Governor, it is now learned that the opinion of the prefect Hoo Shao Nga is that since the fu da derived from the Opium Tax hitherto directed for the maintenance of the Policy, Judicial and other departments as well as for carrying out the new administration in its va ious forms, these depir men's would, after the suppression of the Opiam shops is put in operation, be in lack of funds which are qu te necessary, H therefore intends to establish a Government Op'am Monopy Busiu from which all th. Opium smoking shops after having been converted into prepared Opiam shops will be ordered to get their supply of Opium for sile in the market. In this way not only the price of opium will be enormously increased, but the funds above men'i ned will also not be exhausted. Ao-ording to informa. tiou, the regulations bearing ou the present proposal have been submitted for perusal and approval,
Translation of Extract from "Sin Wan Pao” duted 4th July 1907. Government Upiam Monopoly Bureau aud appointment of Officers.
The closing up of all Opium shops at Nanking will be at the end of the 6th moon. The Finance department authorities have taken steps to raise capital for the preparing and sale of Opium which will become a Government Monopoly, and in this connection a station will be established in every action of the City. l'hese stations to the number of 5, will each be under the charg- of one deputy and two gentry and will be put under a General Bureau. Viceroy Tuan of the Kiaug has appointed Prefect Lo hu to be the President and In- spector of the Bureau, which will be in work. iug order in the near future.
Translation of a letter adressed to Importars by the Swatow Opium Guild in Shanghai :-
We bare been continually receiving advices from our constituents in various countries that the gile of Opium is to be conducted by the Officials, according to the Nanking regulations, I' has been arranged that the preparation of The considerable losses which we have already Opium is to commence at Nanking on the 22nd suffered and the further heavy logs whica of this Chinese moon, namely the 31st inst. and
¦ are likely to aceru on our large holdings if the mou poly is allowed to be enforced. Lave ! resulted from the action of the Chinese Giover 1- ment which is in direct contravention of article V of th Treaty of Nanking - f 1841 and article XIV of the Treaty of Ti-utsin of 1858 b twen Frauca and China and which is calculated to rain the trade in Foreign Oping with the intention apparently of pushing the consumption of native drug.
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on the first day of the 7th Chinese moon viz. the 9th proximo, offices for the sale of prepared
piam to the public will be
pened by the Officials. S me wholesale dealers of good stand- ing in the interior have already wound ap their business fearing that the monopoly may render it impossible for them to get rid of their Optum. Formerly they were under the impression that only pium smoking dens were to be closed and had no idea that a mouopoly would be establ. In view of the abor› ficts, we consider that it ished. We are afraid that our constituenle would be only just that we should be indemaitiel will not be able to recover te money against by the Chin-s· Government for the losses which the Opium soli by them on credit to retail we bare bad to bear, and for any subsequent
dealers and consequently they may not be losses which may arise if immediate action is able to pay off the balance of their indebtedness not taken to abolish the monop ly. The intra-
to a For this reason they are trying to tion of the British Government was the gradual cancel their previous orders. Employees of reduction of the Opium trad- and i ult mate the Opium monopoly Bureau have already alition in the space of ten years, whereas the purchased from countries utensils for prepair. action of the Chinese Governments to suddenlying Opium and workman have been engaged extinguish the trade in for-igu Opium and thereby cripple the resources of all those who are interested in it, instead of endeavouring to decrease the large areas in the interior under
and sent to Nanking to carry out the work. The head office is established at Can Chow Szechun. Opium has been sent to Nanking, while over a hundred thousand tasis