This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
300
(August 31.)
SECTION 1.
Consul-General Scott to the Marquess of Lansdowne.-(Received August 31.)
(No. 26.) My Lord,
Canton, July 27, 1903.
I HAVE the honour to inclose herewith copy of my despatch No. 25 of the 24th instant to His Majesty's Chargé d'Affaires at Peking, from which it will be seen that an attempt is again being made by the Provincial Government to impose the additional tax on opium, under the name of "Prepared Opium Tax," but reducing the levy, as originally proposed, by one half, namely, 57 t. 60 m. per pical. The modus operandi is to make the Opium Guild responsible for the collection to the amount of 800,000 dollars, 600,000 dollars to be paid into the Canton Treasury by the Opium Tax Syndicate.
I have, &c. (Signed) JAMES SCOTT.
Inclosure in No. 1.
(No. 25.) Sir,
Consul-General Scott to Mr. Townley.
Canton, July 24, 1903. IN continuation of my despatch No. 23 of the 15th instant, regarding the prepared opium tax, and more especially of the last paragraph, referring to operations in Canton, now beg to report that, on the 22nd instant, a Proclamation, bearing date 24th June, was issued by the high provincial authorities, under the sanction of the Viceroy and Governor, reimposing the prepared opium tax, but reducing the rate from 12 candareens to 6 candareens per tael ounce, that is, 57 t. 6 m. per pical over and above the li-kin and duty under the Convention.
With a view to the success of the scheme, the Chinese officials are bringing every possible pressure to bear upon opium merchants to undertake, by means of their Guild, in conjunction with the Heng Chi Opium Tax Syndicate, the collection and payment into the Provincial Treasury of the tax, amounting to 800,000 dollars per annum. Only three native opium dealers are inclined to comply with the official behests, and these are men who have some considerable stock in hand, and who hope that, with the enhanced prices consequent on the increased taxation, they may clear off their holdings, and save themselves from bankruptcy.
I beg to inclose copy and translation of the Proclamation, and of my letter to the Viceroy, protesting against the tax as contrary to Convention. It is clear that the importers have to pay on import, while the packages are unopened; not only so, but actually within the port area, before reaching the consumer in the interior. I also reminded the Viceroy of my Agreement with his predecessor, who assured me that, pending a final decision between you and the Wai-wu Pu, the tax should remain in abeyance. I expressed my surprise at his action, which I characterized as a breach of good faith. I requested his Excellency to withdraw the Proclamation pending reference of the matter to you, but I beg to record my opinion that I see no prospect of my appeal in this respect being complied with.
Considering the question urgent, I telegraphed to you on the 23rd instant.
I have, &c.
(Signed) JAMES SCOTT.
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