This Document is the Property of His Britannic Majesty's Government.
CHINA TRADE.
CONFIDENTIAL.
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8 [September 28.]
IR 20 JAN 041
SECTION 2.
No. 1.
Mr. Townley to the Marquess of Lansdowne,- (Received September 28.)
(No. 295.)
Peking, August 11, 1903.
My Lord,
AS reported in my telegram No. 195 of the 1st instant, in reply to your Lordship's telegrams Nos. 136 and 137 of the 31st ultimo, I have addressed repeated remonstrances to the Board of Foreign Affairs on the subject of the additional taxation of foreign opium both in Kiangsi and at Canton, since the date of my despatch No. 223 to which your Lordship refers. My last protests were sent to them on the 29th and 31st ultimo, in consequence of a telegram from Mr. Scott that the Canton authorities had issued a Proclamation reimposing the prepared opium tax though reducing its amount, and were levying it within the port area from the importers while still in its original packages. In view of the past discussions on the subject, this action seemed to indicate a determination on the part of those authorities to disregard totally the restrictions of the Additional Article, and I therefore pointed out to the Board that it would be more courteous to give notice of the wish of the Chinese Government to abrogate it.
In a second letter, on the 31st, I returned to the Board's contention that a tax levied on both native and foreign opium alike was permissible. Of these letters I have the honour to inclose copies.
The reminders contained in them of the consequences to the Imperial revenue of the abrogation of the Additional Article seem to have produced some effect, for I learn from Mr. Scott that the Canton tax has again been suspended. In their reply, the Board make an attempt to show that in the Canton provinces, at all events, native opium pays as much duty as foreign opium, or even more.
A reference to Mr. Scott enabled me to refute this contention. Copies of the Board's letter and of my answer are also inclosed.
I think it is sufficiently clear that the provincial authorities are doing their best to evade the provisions of the Additional Article, in the sense in which it has previously always been understood, and that the Central Government only restrain them when they think there is a danger of the Article being denounced. Such a position is a very unsatisfactory one, for it implies continual friction and disputes, which will probably in time become as acute as if the Additional Article had never been signed. If the Central Government were once again convinced that attempts to evade the obligations imposed by the Additional Article, even if those attempts are temporarily abandoned when detected and protested against, would lead to its abrogation, they would probably impose the same restraints on the provincial authorities that insured the smooth working of the arrangement in the past, for they are certainly not willing to sacrifice 4,000,000 taels of annual revenue collected with no extra cost by the Maritime Customs.
I have, &c. (Signed) WALTER TOWNLEY,
Your Highness,
Inclosure 1 in No. 1.
Mr. Townley to Prince Ching.
Peking, July 29, 1903.
I HAVE the honour to inform your Highness that I have received a telegram from His Majesty's Consul-General at Canton, reporting that the local authorities have issued a Proclamation again imposing the previously-abandoned prepared opium tax on foreign opium, though reducing its amount, and that the tax is levied on the foreign opium within the limits of the port from the importers, while the packages are still unopened.
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