[This Document is the Property of His Britannic Majesty's Government.]
C. O.
# CHINA TRADE
401
**CONFIDENTIAL**
No. 1.
[December 22.]
3726
RECO
SECTION 4R 29 JAN 03
Sir E. Satow to the Marquess of Lansdowne.--(Received December 22.)
(No. 333.) My Lord,
Peking, November 6, 1902. IN continuation of my despatch No. 316 of the 28th October, on the subject of a prepared opium monopoly throughout China, I have the honour to inclose copy of a note which I addressed to Prince Ching in pursuance of the instructions contained in your Lordship's telegram No. 279 of the 28th October.
In this I have laid stress on the dangerous powers of interference with Chinese financial administration which the monopolists would acquire, rather than on our rights under the Additional Article of 1885, for I think it possible that they might contrive to avoid any breach of that instrument and so be in a position to argue that our rights under it were not affected.
I have not, so far, received a reply to my note.
According to a telegram from Mr. Fraser received on the 1st November, the scheme contemplates the granting of a monopoly to the German Syndicate of the purchase of crude opium throughout the Empire. Their agents would be sent to all parts of the country to buy it, and would also have authority to prevent the preparation of opium by anyone else, or the use of any drug but theirs.
It seems almost incredible that the Chinese Government should be seriously contemplating the placing of such enormous powers in any foreign hands, but in the present condition of affairs it is impossible to place limits to the influence of heavy bribes.
I have, &c.
(Signed)
ERNEST SATOW.
Inclosure in No. 1.
Sir E. Satow to Prince Ching.
Peking, October 30, 1902. ON the 21st instant I had the honour of addressing your Highness with regard to a report that had reached me of a proposal made to the Chinese Government for the granting to a foreign Syndicate of a monopoly of prepared opium throughout China.
At the time I wrote this note I was aware, although I made no reference to the fact, that such a scheme had been proposed to the Chinese Government and had been vigorously opposed in Memorials to the throne from the Viceroy Chang, the late Viceroy Lin, and the Viceroy Yuan.
On the 27th instant I received your Highness' reply, but before I had reported its tenor to my Government I received from them a telegram instructing me to strongly oppose any such scheme, on the ground that a monopoly of this kind would put those to whom it was granted in a position to interfere with the internal administration of Chinese finances, and would, therefore, be opposed to the public interests.
His Majesty's Government further consider that such a scheme would probably infringe existing Treaty obligations, and they instruct me to invite your Highness to acquaint them with the details of any proposal of this nature that may have been under consideration by the Chinese Government.
Your Highness will observe that the declaration in your note of the 27th is not...
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[This Document is the Property of His Britannic Majesty's Government.]
C. O.
CHINA TRADE