407
10
arrangement would pay much less than it pays now, but the amount would be paid in duties to the Government, and not in squeezes, bribes, and blackmail, The advantages
to be gained are---
1. Security and cheapness of carriage; and
2. That the exports of West Yünnan would flow out by the same channel along which the imports flow in.
In view of the appreciation of the rupee and the fluctuations of silver this would be a very great advantage.
Finally, even if any ill effects are likely to result to the Indian opium trade (which I do not admit), it must be remembered that precisely the same results would arise from the export of opium by another easy, safe, and cheap route over which India has no control, namely, the French Red River route, which will in a few years have the additional advantage of a railway.
Therefore, as Burmah has no power to stop or even diminish the output of the Yünnan drug (for every pound of it that wants to go east goes even under present conditions), it would seem advisable to permit it to follow its natural route, and that by which it will be of the greatest use to our import trade. To probibit it seems to be a policy which has all the disadvantages and none of the advantages of protection in its worst form.
I would request you to regard this as confidential, except so far as the Government of Burmah is concerned.
11
At my last interview with the Viceroy he intimated that he would be prepared to reopen the question in a year or so, when he will be better informed of the views of His Majesty's Minister and the Government of India.
June 5, 1902.
Indorsement by Major J. J. Cronin, Deputy Commissioner, Bhamo.
Forwarded.
June 10, 1902.
Indorsement by G. W. Shaw, Esq., 1.C.S., Commissioner of the Mandalay Division.
Submitted.
Inclosure 10 in No. 1.
Note and Draft Rules framed by H. L. Tilly, Esq., Collector of Customs, Rangoon, for Regulating the Transport in bond of Yunnan Opium from Tengyueh to Hong Kong and Shanghae.
Inclosure 9 in No. 1.
Consul Litton to Government of Burmak.
Yunnan-fu, May 8, 1902. REFERRING to my despatch of February last, submitting for consideration a suggestion that West Yünnan opium might be permitted to pass through Burmah in bond en route to Canton or Shanghac, I have the honour to report that by request of the Tengyuch merchants I addressed a despatch to the Viceroy of Yuunan on the matter, which I have also verbally discussed the Treasurer of Yunnan. Unfortunately there are difficulties which I could not foresec at Tengyueh, and even if your Government is inclined to regard the proposal with favour, it cannot be carried through without strong pressure from the Foreign Office and His Majesty's Minister.
I am of opinion that until the Tengyueh Customs are in full working order it will not be advisable to press the question.
In his reply to my despatch the Viceroy states that he fully recognizes that my proposal is calculated to develop trade, but he cannot consent to it because-
1. The Treaty forbids the export of opium to Burmah.
2. The Customs would tax it as Indian opium.
3. Other provinces besides Yünnan depend on the li-kin on passing Yunnan opium wbieb they would lose if the drug went round by sea.
Objections (1) and (2) consist in begging the question, as the gist of my despatch was a request that his Excellency should co-operate in a proposal to modify the Treaty and Customs Regulations. As regards (3) the picture of the Yunnan officials refraining from adopting a measure which would benefit their own province out of an altruistic regard for the interests of another province, is in the best vein of Chinese comedy.
The real reasons for the provincial opposition to my proposal are--
1. The gentry of Yunnan-fu, who are very powerful and corrupt, are against any measure which will tend to decrease the number of opium caravans passing through the capital, because they levy exactions on such caravans.
2. Only about 250.000 taels of opium h-kin revenue are now accounted for in the Provincial Budget. A far larger amount must be received, and the difference goes into the officials' pockets. To put the trade under the supervision of the Tengyueh Customs would introduce a system of accounts, checks, and regularity which the
Mandarin abominates
I am still of opinion that my proposal, if it could be adopted, would be of very great benefit to the Burmah-China trade.
Note.
THE object of the Rules is two-fold-first, the Officer of Chinese Customs at the eastern port must be satisfied of the identity of the opium with that passed out by the Chinese Customs at Tengyueh, and, secondly, there must be no leakage of Yunnan opium into Burmah.
The conditions of the route are—
(a.) A land journey of 180 miles (which will take fifteen days when the road is in good order) from Tengyueb to Bhamo.
(b.) A bonded warehouse and Customs supervision at Bhamo.
(c.) Transit by the steamers of the Irrawaddy Flotilla Company to Rangoon. (d.) A bonded warehouse and Customs supervision at Rangoon.
(e.) Transit by steamer of the British India Steam Navigation Company to Hong Kong, and, if necessary, transhipment to Shanghae.
(It will be necessary to send the opium from Tengyueh to Bhamo under charge of a military police escort which should start at regular intervals of, say, a fortnight or a month.)
(If ordinary merchants are allowed to travel with the convoy it will be an immense encouragement to trade along that route.)
The proposal of the Government of India to open a bonded warehouse at Bhamo, which would necessarily be in charge of a Customs officer, is, for the purpose of these Rules, treated as an accomplished fact.
The Manager of the Irrawaddy Flotilla Company states that the Company is willing to give a receipt for the opium at Bhamo and to deliver it on the steamer at Rangoon, taking all the responsibility. It will he placed in the strong-room, and treated in the same manner as treasure. The charge for freight should be paid by Government, and recovered with all other Burmah charges at Rangoon before the opium is shipped for China.
The agent for the British India Steam Navigation Company state that they are willing to take the opium to Hong Kong and to assume responsibility for any loss--that is, to pay the value.
Their charge for freight is ad valorem, and they are accustomed to dealing with opium, so their proposals may be accepted. They do not call at Shanghae.
A Syndicate of Chinese merchants has been formed for the purpose of exporting Yunnan opium to Hong Kong and Shanghae. I have shown the draft Rules to one of the leading members. He admits that they will meet the requirements. He states that if merchants are allowed to accompany the opium escort the trade with Yunnan will at once double itself. He tried hard to persuade me to recommend the transport of