364

We contend that the Government of China having by Articles 5 and 10 of the British Treaty of Nanking 1842 expressly agreed to abolish the practice named in article 5 of the Treaty, and having agreed to :----

14

Permit British Morchants to carry on their Mercantile transactions with whatever persons they please ̈

+4

THE HONGKONG WEEKLY PRESS AND

it is gross abuse of this Treaty if the Provin- cial Authorities of the Two Kwangs are allowed to carry into effect the enactments contained in the Notification above referred to. It is obvious that if Clauses, 1. 2 and 3 are carried into effect, the result will be that a certain number of native establishments selling raw and pre- pared opium will be ascertained, registered and licensed, and this will curtail the sale of raw native establishments opium, and only the registered and livenood will be computent to purchase, raw opium from the British vendur. and whether the purchase by the native shap h made direct or through an agent, the result will be the same. In effect the British Mer-i chant will have his trade cut down to the: limits of those who are permitted by the! Provincial Austhorities of the Two Kwangs to trado with him. Such 0 nicnopoly would prevent other dealers from participating. in the Opium Trade. thus destroying healthy ! competition and thereby crippling business and causing heavy loss to importers who will be at the mercy of the few native shops who hokl licences authorising them to purchase 1° ° opium. Holders of lienees would he ble to combine to dictate purchasing prices Joeling confident of their position as mou podists į in the Trade.

We submit that the scheme is illogical and is contrary to Treaty, and is illegal.

With regard to Clause 4. viz:-" that after ascertainment and registration of the number of j opium shops in the. Province of the Two Kwangs no new opium shops doing business in the buying and selling of raw and prepared opium may be established". the result of this clause will be that a monopoly will be created amongst a certain number of existing opium shops, which shops will, as time goes où, de. crease in number by vither tat retirement from business, (b) seizure and closure by the authori. ties of shops for an infringement or alleged infringement of the law (e) the purchase by capitalists of the shops and of the licences.

In the course of time, therefore, the sale of raw opium will be in the hands of a few, thus creating a monopoly. In this regard we would point out that it would be obviously for a native to judge whether or not a licence was a genuine licence. If a licence prosented by a purchaser is found to be false, the proprietor of the opium shop is liable to have his shop siezed and shut up, and he would sustain the loss of his entire capital | through no fault of his own. This would open the door to fraud inasmuch as false charges could be trumped up against opium shops in order to get them siezed and closed in order to obtain the forfeiture of their capital to the Chinese Authritics. This again will ultimately result in the authorities farming the licenced shops out to those capable of paying heavy sums for them over and above the ordinary licence fees.

their

scheme is permitted to be enforced specially in the present unsettled and unsatisfactory state of the Opium Trade owing to the action of the Chinese Government in closing up the public smoking dens, and importers, in view of the further uncertainty of demand from those who would hold a monopoly, would curtail importation, which would mean a material re- duction of their purchases from the Government of India's monthly sales.

[November 23, 1908

M. H. E. ELLIAS, CAWASJEE Palanjes & Co.,

Cable to Sir John Jordan, K.C.M.G., Chamber Commerce strongly protest action Kwangtung Authorities introducing

attempting | obstructive regulations and

opium monopoly (stop) Regulations

into Action affect

to

Come

to-morrow (stop)

seriously very trade

and (stop)

We think, therefore, that it is advisable to lay the matter before you, so that immediate steps may be taken to stop the regulations being | Rights carried into effect, and we trust that you will is support us in protesting against this proposed ¦ be infringement of our treaty rights.

མ་་

restrict

In further support of our contention we opium

with would beg to refer you to the following

Article V. of the British Treaty of Nanking Chinese 1842.

reduction,

The Government of China having compelled the British Merchants trading at Canton to deal exclusively with certain Chinese Merchant, called Hong Merchants (or ca-Hangl who hail been licenced by the Chinese Government for this pur pose, the Emperor of China agrees to abolish that practice in future at all ports where British Merchants may reside, and to permit them to carry on their Mercantile fransactions with whatever persons they please; and His Imperial Majesty further arrow to pay to the British Government the sum of three millions of dollars, on gerount of debts due to British subjects by some of the said Hong Merchants, or co- Hong, who have become insolvent, and who own very large sums of money to subjects of Her Brittanic Majesty." Article X of the same Treaty:

|

|

no

force calculated British

contrary Treaty

Chamber's opinion

regulations should

permitted free

which

sale

imported

in

agreement

will

of accordance

between British

Governments providing gradual

Letter from Government:-

Colonial Secretary's Office,

Hongkong. 3rd October, 1908. SIR.I am directed to inform you that His Excellency the Governor has this day received a telegram from His Majesty's Minister at Peking who states that he has made verbal re- presentations to the Wai Wa-pu and given them a memorandum regarding the Opium Monopoly at Canton. The Wai-wn-pa have promised to telegraph instructions to the Viceroy on the subject.

2. I shall be obliged if you will be good enough to communicate the contents of this letter to Messrs. D. Sassoon & Co., and the other signatories of the letter addressed to me on this subject on the 25th ultimo.-I am, &c..

F. H. MAY,

Colonial Secretary.

The Secretary,

Hongkong Chamber of Commerce.

Reply to Government:-

Chamber of Commerce, Hongkong, 9th October, 08. SIR.I am directed to express the thanks of my Committee for your letter of the 2nd instant having reference to the Opium Mono- poly at Canton, and to state that the contents thereof have been communicated to Mesars. David Sassoon & Co., as requested. I am, &o.,

E. A. M. WILLIAMS,

Secretary.

Hon. Mr. F. H. May, C.M.G.,

Colonial Secretary.

His Majesty the Emperor agrees to establish at all the ports which are by Article II of this Treaty to be thrown open for the the resort of British Merchants, a fair and regular Tariff of Export and Import Customs and other dues, which Tariff shall be publicly notified and promulgated for general information ; andį the Emperor further engages that, when British Mer- chandise shall have once paid at any of the said ports the regulated customs and dues, agreable of the tariff to be hereafter fixed. such merchants to any province or city in the interior of the Empire of China, on paying a further amount as transit duties which shall not exceed per cent. on the tariff value of such goods. Article XIV of the French Treaty of Tientsin of 1858. Aucune société de commerce privilegiće ne pourra désormais s'établir en Chine, et il en sera de mène de toute coalition organisée dans le but d'exercer une monopole sur le commerce. En cas de contravention au présent Article, les

I have the honour to forward for the infor- autorités chinoises, sur les representations mation of yourselves and co-signatories to the du cousul on de l'agent consulaire, aviseront ! letter recently addressed to the Chairman of the les moyens de dissoudre de sembles associa-

Chamber on the subject of the recent proclama- tion dont elles s'efforceront d'ailleurs de tion of the Provincial Government of Kwang- prévenir l'existence par les prohibitions tung regarding the sale of opium, a copy of a préalables, afin d'écarter tout ce qui pourrait letter received from the Government of Hong- porter atteinte à la libre concurrence.", kong in response to the cable of protest de- also to the correspondence entitled (An Opiumspatched by the Chamber to Sir John Jordan. Monopoly at Nanking at page 3 of the

am, &c.. Appendix to the Report Hongkong General Chamber of Commerce, 1907.

If these conditions are to prevail. native merchants will be chary of entering into the business, and the trade will consequently get into the hands of a few traders. We predict Finally we submit that so long as the Indian that in a short space of time the Provincial Government cultivates the growth of the Poppy authorities either by closing the existing shops and sells opium. it is logical that any interference or by farming them out to a few. will with Treaty Rights with regard to the sale of

whole

into trade get the

own opium in China should be taken to compel hands, thus creating a monopoly, which is China to carry out and fulfill her Treaty

obligations. expreally contrary to the Treaty of Nanking.

With regard to Clause 6, on each and every

We submit further, that the Chinese (overn. occasion that an individual wishes to purchase ment should not be allowed to make any re opium, this burdensome precedure has to be gulations contrary to Treaty which will affect carried out, and on each occasion the purchaser the free sale of opium from India, the growth of has to pay a licence fee. This will of necessity which, under agreement between the British and hamper trade and prevent freedom on the buying and selling of raw opium.

We contend that all the regulations as we have in some detail painted out. form the nucleus of a monopoly which will monopolise the raw opium trade in the Province of the Two Kwangs into the hands of a few individuals, and possibly into the hands of the Provincial Government.

It would also be greatly prejudicial to the interests of the Indian Government if such a

Chinese Government is to be reduced gradually over a period of years.-

-We have &c.

DAVID SASSoon & Co. LTD.-E. Sheellim. E. D. SAB80on & Co.,

S. J. DAVID & Co.. E. PABANEY,

PHIROZSHA B. PETIT & Co..-p.p. 8. D.

L

Setna.

TATA SONS & Co..-p.p. B. D. Tata. P. F. TALATI, H. M. й. NEMAZEE,

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Letter to Messrs. David Sassoon & Co.:-

Chamber of Commerce, Hongkong, 7th October, 1908.

Gentlemen:-

E. A. M. WILLIAMS, Secretary.

Letter to Sir John Jordan

Chamber of Commerce,

Hongkong, 9th October, 1908. SIR.I have the honour to confirm this Chamber's cable to Your Excellency of the 14th September reading :-

Chamber Commerce strongly protest action Kwangtung Authorities introducing ob structive regulations and attempting opium monopoly (stop) Regulations to come into force to-morrow (stop) Action calculated very seriously affect British trade and oon. trary Treaty rights (stop) Chamber's opinion is no regulations should be permitted which will restrict free sale of opium imported in accordance with agreement between British Chinese Governments providing gradual reduction ".

I am directed to forward a copy of the letter and enclosure addressed to the Chairman of the Chamber by the Opium Merchants in Hongkong.

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