8
rapidly. The figures obtained by Mr. Litton from the Imperial Customs at Mengtse are as follows:-
Imports.. Exports..
1899.
1901.
1902.
Taels.
Taels,
3,373,641
3,748,339
Tarls. 8,687,444
1,883,297
3,066,934
3,588,085
5,256,988
6,815,273
7,875,529
£657,117
£951,808
£921,941
9
406
to the certainty of other outlets for Yünnan produce in the near future is not at variance with information to the contrary in the possession of His Majesty's Government, it appears desirable that all reasonable efforts should be made to secure the advantages likely to result from being first in the field.
The Committee of this Chamber therefore venture to submit for the consideration of his Honour the Lieutenant-Governor the advisability of further representations being made to the Indian Government in favour of permitting the facilities urged with such force by Mr. Litton.
It will be noted that, except as regards the Local Government, Mr. Litton desires that his letter may be considered private.
The chief difficulties in the way of Mr. Litton's proposals are likely, it would seem, to be raised by the Government of China (vide Inclosure No. 2). Mr. Litton has pointed out that the officials at Yunnan-fu are very powerful and corrupt; that they levy heavy exactions on opium caravans passing through the capital; and that any measure which would tend to diminish the number of such opium caravans would meet with determined opposition from these officials. The local officials, therefore, are not likely to favour the measures proposed. There is also the difficulty that all opium entering a Chinese port by sea is taxed as Indian opium with the full customs duty. Sir E. Satow, with whom Sir Hugh Barnes discussed the question last July, was of opinion that it would not be easy to persuade the Chinese to modify their policy in this respect, and yet, if the project is to be successful, it is obvious that the opium exported from Rangoon to Canton or Shanghae should not pay when landed more than the li-kin now levied on the cross-country routes.
6. On the whole, Sir Hugh Barnes' conclusion is that, if proper precautions are taken, the stimulus to the trade by the Bhamo-Tengyueh route which may be antici- pated in the event of Yunnan opium being permitted to pass through Burmah in bond, considerably outweighs any objections which may be urged to the proposed scheme. His Honour would therefore recommend that negotiations should be entered into with the Government of China on the subject, that the effect of the proposal on the trade and the advantage from it to both countries should be pointed out, and that the Government of India should offer to relax the probibition contained in Article XI of the Burmah- China Convention, ratified on the 23rd August, 1894, provided the Government of China will accept such rules as the Government of India may frame for the transport of the opium in bond through Burmah, and will also permit its importation into China on terms not inore onerous than those to which the opium is liable when sent to Canton or Shanghae by land.
Inclosure 7 in No. 1.
Rangoon Chamber of Commerce to Government of Burmah.
November 25, 1903.
I HAVE the honour to inclose copy of a letter from Mr. Litton, His Britannic Majesty's Consul at Tengyueh, in reply to a communication addressed to him by the Committee of this Chamber on the subject of Yuunan trade.
Mr. Litton had already expressed himself as strongly convinced of the necessity for permitting the transport of Yunnan opium through Burmah in bond, if the import trade of Yunnan is to be encouraged with advantage to this province, and the letter under reference is mainly a reply to the Committee's inquiry as to whether a decrease in the laying-down cost of the drug further east-assuming such decrease to follow the opening-up of a safer and cheaper route--might not admit of undue competition with Indian opium, and to what extent Chinese preference for the latter might be expected to outweigh its relatively higher cost.
Mr. Litton's arguments appear to the Committee to carry considerable weight.
If the Committee are correct in assuming that the objections of the Indian Govern- ment to the course suggested arise from a belief that the sale of Indian opium in China might be thus prejudiced, the reasons advanced by Mr. Litton against the likelihood of any such result appear to effectually negative its probability, while if his contention as
Inclosure 8 in No. 1.
Consul Litton to Kangoon Chamber of Commerce.
Yunnan-fu, October 3, 1903.
you that IN reply to your letter of the 20th July last, I have the honour to inform I understand that the Government of India has decided that the proposal to permit Yünnan opium to cross Burmah in bond en route to Canton cannot be entertained. would therefore appear to be useless to press the matter further.
At the same time I have to answer your letter.
It
I should like to say that, in my opinion, and in that of all the Chinese merchants here, the Tengyueh-Burmah trade can never be expected to flourish so long as this prohibition is maintained.
Opium represents, roughly, 1,200,0001. out of 2,750,000l., at which the whole of the external trade of Yunnan may be estimated. It represents, roughly, 1,200,0001. out of 1,700,000. of the total exports of Yunnan. Yunnan trade without opium is what Rangoon trade would be without rice.
Further, cotton-planting has been commenced in Tonquin. Probably in about seven years the railway from Hanoi to Yunnan-fu will be complete, and it may be confidently expected that the Railway Company will secure the opium transport. This will result in very little trade at all being left to Tengyueh, as the mules which will take the opium crop of West Yüunan to the railhead will bring back to West Yunnan at cheap freights cottons imported from or viâ Tonquin.
I am aware that the Tengyueh Customs returns have shown a great increase during the last few months, as compared with last year, part of which, no doubt, represents à real development of trade; but the greater portion of it is only temporary, and due to disturbances in the neighbourhood of Mengtse.
Referring to the points mentioned in your letter, it is clear that the competition of the Yunnan against the Indian drug could only become more severe in consequence of the measure proposed if the actual output of the Yünnan drug were to be increased thereby. But there is no reason to anticipate any such result. The one and only means by which the vast majority of the people here can pay for their imports is opium. The area of labour which can, with the labour available, be put under opium is already under it, that area being limited only--
1. By the character of the soil;
2. By the land required for food-stuffs and fodder, which, owing to the cost of transport, cannot be imported;
1
3. By the density of the population, i.e., by the quantity of labour available, which may mention is and has been increasing.
In spite of the great increase in recent years of the export of Yunnan opium, the Indian export seems likely to remain steady. The consumers of the latter are, I think, chiefly rich men on the coast who have the taste for this expensive luxury; they will continue to gratify it, and, irrespective of the quantity of the native drug sent to the east coast, there will, I think, be a market for the Indian drug in China.
As regards taxation, if the export of the Yunnan drug viâ Burmah were permitted, the provincial li-kin at the ordinary rate would have to be paid before the cases could pass the Tengyuch Customs; there would also be a customs duty, rate to be arranged, leviable at Tengyueh. On arrival in Canton or Shanghae, there would be a further duty, and we may be sure that the native officials would insist that it should be a pretty high one.
In fact, there is no reason to suppose that Yunnan opium under the proposed [1844 --1]
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