In conclusion, I am to observe that the remarks in the Chinese note, which suggest the recognition of some sort of relation between the rates of opium duty and the general import duties, which were revised in 1901, are inconsistent with the fact that the opium duties, since the Tien-tsin Treaty, have always been on a special and specific basis, whereas the general tariff, introduced shortly after the conclusion of that Treaty, was framed on a 5 per cent. ad valorem basis, and its revision in 1901 was the outcome of an agreement to revise the duties so as to make them effective at 5 per cent. ad valorem on the basis of the lower value of silver. In the discussion of the question it is important to avoid any risk of admission that the tariff rates, fixed on an ad valorem basis, have any bearing on the rates of opium duty.
I am, &c.
(Signed) HORACE WALPOLE.
The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State, and is directed by the Secretary of State for Foreign Affairs to transmit, to be laid before the Secretary of State for the Colonies, further sections of confidential correspondence, as marked in the margin.
Foreign Office, September 30, 1909.