[This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
24
[October 15.]
SECTION 3.
Sir E. Satow to the Marquess of Lansdowne.-(Received October 15.)
(No. 303.) (Telegraphic.) P.
Peking, October 15, 1902.
WITH reference to your Lordship's telegram No.227 of the 10th September respecting the opium tax at Canton, the Viceroy, in reply to my protest, asserts that, as the new tax is not levied till opium reaches the place of consumption, and as native opium is similarly taxed, there is no infringement of the Additional Article, and in this he is supported by the Wai-wu Pu.
His Majesty's Consul-General reports, in contradiction of this, that the tax is paid, while the package is still unopened, by the original importer, and that neither the consumer, the boiler, the opium-divan, nor the retail dealer pays it direct to the farm. The purchaser of certain confiscated opium which was sold by public auction was ordered by the farmers, before they would allow him to take delivery, to pay the new tax.
Unless I can warn Chinese Government, in laying these facts before them, that His Majesty's Government must consider the desirability of withdrawing from the 1885 Arrangement, they will probably continue to argue the case indefinitely. I would venture therefore to ask your Lordship to authorize me to give this warning.
[2234 p-3]