[This Document is the Property of His Britannic Majesty's Government.]

CHINA TRADE.

CONFIDENTIAL.

No. 1.

239

[July 30.]

SECTION 1.

Consul-General Scott to the Marquess of Lansdowne.-(Received July 30.)

(No. 20.)

Canton, June 27, 1903.

My Lord,

I HAVE the honour to inclose herewith copy of my despatch No. 21 of the 24th instant to His Majesty's Chargé d'Affaires at Peking, reporting the establishment by the provincial authorities at Kiangsi of a new opium li-kin station at Kan-chou Fu, in Kiangsi, for the collection of a new tax on opium passing into that province from Canton, to which, in order to evade the terms of the London Convention of 1885, the Chinese officials give the name of "prepared opium tax."

I have, &c.

(Signed) JAMES SCOTT.

Inclosure 1 in No. 1.

(No. 21.)

Consul-General Scott to Mr. Townley.

Canton, June 24, 1903.

Sir,

I BEG to inclose copy and translation of a red note which I recently addressed to his Excellency the Viceroy at this port, together with copy and translation of a Petition from certain opium merchants complaining of the establishment by the provincial authorities of Kiangsi of a new opium li-kin station at Kan-chou Fu, in Kiangsi, near the northern end of the Mei-ling Pass, in Kuang-tung.

It would appear that a considerable quantity of opium finds its way from Canton city to the provinces adjoining Kuang-tung on the north, traversing the main route through the well-known Mei-ling Pass. Hitherto, opium duly sealed and stamped has been allowed to circulate without further tax while the packages were unopened passing from province to province. But the Kiangsi authorities would now appear to have devised a new tax styled the "prepared opium charge," and have appointed an officer at Kan-chou to collect the same. I have made careful inquiries, and find that there are no boiling establishments whatever at Kan-chou; and that this place is selected solely for its convenience in seizing and dealing with opium as it leaves Kuang-tung.

So far I have had no reply from the Viceroy beyond a formal acknowledgment of my letter, informing me that he had communicated with the Governor of Kiangsi by telegraph as requested.

Under the circumstances, I beg to lay the whole facts before you for such action as you may consider necessary, only adding that I see no hope of the Kiangsi Government returning a favourable reply to my representations through the Canton Viceroy.

I have, &c.

(Signed) JAMES SCOTT,

Sir,

Inclosure 2 in No. 1.

Consul-General Scott to Viceroy.

Canton, June 17, 1903.

I BEG to call your Excellency's attention to the fact that a Chinese official has recently established himself at Kan-chou Fu, in Kiangsi, on the borders of Kuang-tung Province, and is there levying an impost on foreign opium under the designation of "boiled opium tax" ("kao-chian").

Now, all foreign opium that reaches Kan-chou comes from Canton, and there are no boiling establishments at the place. Clearly, therefore, this new impost is contrary


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