The above regulations are temporary, and if found to be in any way unsatisfactory, the farm requests authority to alter them at any time.
Inclosure 3 in No. 3.
Proclamation issued in the names of the Board of Reorganization and the Kuang-Tung Board of Revenue by the Treasurer Ting, the Provincial Judge Wu, the Salt Treasurer Kuo, and the Grain Treasurer Chou, all decorated with the Button of the Second Class.
LET all men know that in Kuang-tung the original prepared opium tax was 120,000 taels per annum, and that afterwards, owing to the magnitude of the new indemnity, and the length of time required to liquidate the same, an Imperial Edict was received, ordering that the levy on prepared opium be increased, on the ground that opium is not an absolute necessity. Further, the evils of opium smoking are very great, so that if a little extra taxation is paid by smokers it is a small matter, and it was for this reason that the Kuang Hing Kung Ssu received permission to undertake the management of the prepared opium levy, and to collect the tax on the selling price.
The Kuang Hing Kung Ssu's method of calculating the prepared opium tax cannot be considered unjust, but their regulations were not very satisfactory, and were opposed to Treaty stipulations, with the result that the Wai-wu Pu eventually ordered them to be withdrawn, and gave instructions to resort to the old prepared opium licence system.
At the present moment the Treasury is empty, and Kuang-tung's contribution to the indemnity is 2,000,000 taels, but the annual revenue falls far short of this figure. Taxes on land, houses, pigs, wines, &c., have long since been introduced, but there is still left the prepared opium tax, which represents a very considerable sum, and for the management of which no satisfactory scheme has yet been devised. We were, therefore, compelled to remain at home and sigh, our hearts filled with anxiety.
Now, however, the merchant with official rank, Wu K'uei Tu, petitions and states that the Hêng Chi Syndicate has been formed to manage prepared opium licences throughout Kuang-tung, and guarantees 1,000,000 dollars by means of a tax on all Patna and Malwa prepared opium of 1 mace 2 candareens per tael ounce. Native raw opium from Yün-nan and Ssu-ch'uan, which is not an article of export, shall be taxed on the calculation that it represents 60 per cent of the prepared drug. A first payment shall accompany the presentation of the regulations, and a request be made for the issue of a Proclamation sanctioning the commencement of operations.
We have considered this petition and the regulations, and find that they are aimed at the extension of the prepared opium licence system, and an increase in the taxation levied thereunder; also, that the methods proposed affect only the internal government of China, and are altogether different from the former Kuang Hing Kung Ssu. We have therefore reported to their Excellencies, the Acting-Viceroy, Tê, and the Acting-Governor, Li, and have received their sanction to the inauguration of the tax.
We have accordingly notified the merchant with official rank, Wu K'uei P'u, of the Hêng Chi Syndicate, informing him that he may immediately commence operations in accordance with the regulations presented by him, and must remit at the proper periods the monthly levies for the payment of the foreign indemnity.
We also, therefore, issue this Proclamation for the information and instruction of all prepared opium merchants throughout the province, and for those merchants who deal in raw opium from Ssu-ch'uan and Yün-nan. You merchants must all understand that this increase in the prepared opium tax has the Imperial sanction, and that the levy is paid by the opium smoker; also, that the tax is a levy in order to put a stop to the smoking of the drug. It is different from other taxes, and you must all act in accordance with the regulations in the opium farmer's Petition, as stated hereunder.
If any of you oppose them, disobey them, and are guilty of concealment or smuggling, the Syndicate has authority to stop and investigate such malpractices, and to petition for the closing up of the shop and the punishment of the offender. There shall be no leniency! Let every one obey! This Special Proclamation must be observed.
[Here follow Regulations Nos. 3, 4, and 6 of the Provisional Regulations.]