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been practically rejected by the decision that they of Her Majesty's Government could not assent to the levy of taxation from population of Hong Kong for the benefit of the Chinese Government, a result which the adoption of Sir R. Hart's proposals would involve.

From the accompanying papers it will be seen that the Government of India have not under their consideration any scheme for restricting the export of opium from India to ships carrying any particular flag. In these circumstances the question is narrowed to the last two schemes referred to above.

It will be observed that the Government of the Viceroy in Council does not view with favor any proposals for levying in India an export duty on Opium. In addition to the many and formidable difficulties to which attention is drawn in the papers forwarded for the Earl of Rosebery's consideration, any arrangement by which one Power collects taxation on behalf of another nation

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