2
2. For rendering illegal the possession of raw opium, its custody or control in quantities less than one chest, except by the Opium Farmer.
3. That all opium arriving in the Colony be reported to the Harbour-master, and that no opium shall be transhipped, landed, stored, or moved from one store to another, or re-exported, without a permit from the Harbour-master, and notice to the Opium Farmer.
4. For the keeping by importers, exporters, and go-down owners, in such form as the Governor may require, books showing the movement of opium.
5. For taking stock of quantities in the stores, and search for deficiencies by the Opium Farmer, and for furnishing to the Harbour-master Returns of stocks.
6. For amendment of Harbour Regulations as to night clearances of junks. The conditions on which it is agreed to submit the Ordinance are----
1. That China arranges with Macao for the adoption of equivalent measures.
2. That the Hong Kong Government shall be entitled to repeal the Ordinance if it be found to be injurious to the revenue or to the legitimate trade of the Colony.
3. That an office under the Foreign Inspectorate shall be established on Chinese territory at a convenient spot on the Kowloon side for sale of Chinese opium-duty certificates, which shall be freely sold to all comers, and for such quantities of opium as they may require.
4. That opium accompanied by such certificates, at the rate of not more than 110 taels per picul, shall be free from all further imposts of every sort, and have all the benefits stipulated for by the Additional Article on behalf of opium on which duty has been paid at one of the ports of China, and that it may be made up in sealed parcels at the option of the purchaser.
5. That junks trading between Chinese ports and Hong Kong, and their cargoes, shall not be subject to any dues or duties in excess of those leviable on junks and their cargoes trading between Chinese ports and Macao, and that no dues whatsoever shall be demanded from junks coming to Hong Kong from ports in China, or proceeding from Hong Kong to ports in China, over and above the dues paid or payable at the ports of clearance or destination.
6. That the officer of the Foreign Inspectorate, who will be responsible for the management of the Kowloon office, shall investigate and settle any complaints made by junks trading with Hong Kong against the Native Customs Revenue stations or cruizers, and that the Governor of Hong Kong, if he deems it advisable, shall be entitled to send a Hong Kong officer to be present at and assist in the investigation and decision. If, however, they do not agree, a reference may be made to the authorities at Peking for a joint decision.
Sir Robert Hart undertakes, on behalf of himself and Shao Tao Tai (who was compelled by unavoidable circumstances to leave before the sittings of the Commission were terminated), that the Chinese Government shall agree to the above conditions.
The Undersigned are of opinion that if these arrangements are fully carried out, a fairly satisfactory solution of the questions connected with the so-called "Hong Kong blockade" will have been arrived at.
Signed in triplicate at Hong Kong this 11th day of September, 1886.
(Signed) BYRON BRENAN, Her Britannic Majesty's Consul at Tien-tsin.
(Confidential.)
J. RUSSELL, Puisne Judge of Hong Kong. ROBERT HART, Inspector-General of Customs, China.
Inclosure 2 in No. 1.
HONG KONG BLOCKADE COMMISSION.
Proceedings at the Sitting of September 7, 1886.
Present:
Mr. Russell, Sir R. Hart, and Mr. Brenan.
Sir R. Hart said that since the last meeting he had, as the Commission knew, passed some time in Macao. The Governor of Macao had agreed to place all opium in Macao under Chinese Customs supervision under certain conditions. Sir R. Hart had referred these conditions to Peking, and he had now received a reply. The Chinese Government would not accede to one among the conditions which the late Governor of Macao had deemed a sine quâ non. Governor Roza, however, had added that although, in his opinion, the particular condition was essential, his Government might not consider it so. It had therefore been agreed between Sir R. Hart and Governor Roza that, should Peking refuse to accede, nothing should be done until Governor Roza reached Portugal in November, when negotiations could be resumed between Peking and Lisbon. Under these circumstances, Sir R. Hart asked that Hong Kong should defer taking action until the result of the negotiations with Portugal should be known.
Mr. Russell then read a despatch addressed to him by the Acting Governor of Hong Kong, pointing out that since the Commission had begun its sittings there had occurred frequent cases of interference with junks trading with Hong Kong. Mr. Russell then cited several cases of interference and stated that the li-kin tax had been increased. He asked Sir R. Hart whether he could explain what this meant.
Sir R. Hart replied that he had no official information on the subject, but he thought that no li-kin would be levied without the authority of the Viceroy at Canton. He did not think that the extra li-kin was a blow aimed at Hong Kong; he had little doubt that the extra li-kin applied to the whole province, and the Hong Kong trade had to take its chance with the rest.
A conversation then ensued on the subject of the surrounding stations. Mr. Russell stated that the trading community of Hong Kong would be well pleased if these stations could be placed under the Foreign Inspectorate, or if, when any offence was charged against a Hong Kong junk by any of the officials at these stations, a member of the Foreign Inspectorate could investigate the charge.
Sir R. Hart reminded Mr. Russell that at one of its first sittings he had said that there was now no complaint to be made against these stations; but Mr. Russell had made any stipulations regarding these stations as a condition of giving assistance in suppressing smuggling, Sir R. Hart would have been able to recommend their adoption. It would not come well from himself, Sir R. Hart said, to recommend that the stations should be placed under his control, but he thought that if the suggestion came from the English Commissioners it would carry weight.
Mr Russell said that after consultation with Mr. Brenan he thought that the proposed Ordinance could be amended so as to protect the Customs revenue much more effectually than before. The alteration consisted in cancelling the clause establishing a Raw Opium Farm, and practically abolishing the retail trade. To say so, in so many words, would alarm the community and cause much opposition in Council; but the way he proposed doing it was by giving the Opium Farmer a monopoly of retail trade, and on the Farmer's licence endorsing such conditions as would make trade impossible; by requiring [him], for example, to charge 30 per cent. over the market rate. This, coupled with the precautions taken with regard to the shipment of unbroken chests, would make smuggling practically impossible. Mr. Russell then asked Sir R. Hart whether, in consideration of such further assistance, he could arrange that the duties and li-kin on merchandise entering or leaving Hong Kong by junk should be fixed, so that the trade should not suffer from sudden changes.
Sir R. Hart said there would be some difficulty about this, as li-kin was constantly liable to be raised or lowered.
Mr. Brenan suggested that an undertaking that the Tariff should be the same as that in force all over the province might be sufficient.
Sir R. Hart said he could promise that.
Sir R. Hart said there was one improvement he could suggest in the Ordinance which would be of much assistance; it was that no junk should be allowed to leave the harbour which had not paid duty to the Customs.
Mr. Russell said it was out of his power to entertain such a proposal.
Mr. Brenan asked whether, now that opium could not be exported in quantities less than one chest, Sir R. Hart would make some arrangement similar to that about to come into force at the ports as stipulated in the Additional Article of the 18th July, 1885, under which chests might be opened, repacked, and the small parcels certificated, once the whole chest had paid duty at the Kowloon station.
Sir R. Hart said this could be arranged.
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