29
416
26
The rate of the Irrawaddy Flotilla Company is one agreed upon between them and Government would no doubt the Railway, and might be reduced by mutual consent.
The Agents for the British India bring pressure to bear on the Railway to this end. Steam Navigation also implied that the rates might be reduced, if necessary; that is, as I understand, rather than allow the trade to go to a rival line.
One hundred catties of opium, when packed in two boxes, will weigh nearly two hundred pounds, which is a mule load. It weighs about 36 viss net in Burmese weight, and costs 554 rupees.
The freight to Rangoon would be about 5 rupees, and to Hong Kong a little more than rupees 2: 12 if paid by value. The two boxes would measure about & cubic feet, The handling in and would cost nearly 5 rupees if freight is paid by measurement. Rangoon would cost less than 1 rupee, and I propose to charge a transit duty of 2 per cent, ad valorem.
The value of opium which would be brought through in a year is estimated at seven and a-half lakhs of rupees, and 18,750 rupees would more than cover the expenses which might fairly be debited against the work of the Customs. This charge on one mule load would amount to, say, rupees 13:13:8. The total coast on a mule load from Bhamo to Hong Kong would therefore be :-
To Kangoon
Handling, say Transit
To Hong Kong
Total
Rs. a. P.
5
0
0 14
4
13 13
8
2 12 0
22 H 0
It must be mentioned that a mule load of opium is now 125 catties of opium and not 100 catties as assumed by me. The method of packing in boxes is much heavier than that now employed, but as the mule can only carry 200 lbs. the weight of the opium has been reduced.
(Signed) HARRY L. TILLY,
Chief Collector of Customs, Burmah.
November 4, 1904.
Memorandum by Mr. Litton on the Government of India's letter, dated October 11, 1904, on Opium Transit submitted to the Government of Burmah, November 16, 1904.
1. It is asked whether an opium transit trade viâ Burmah may be expected to develop at once if Burmah merely withdraws the restriction on inportation via Tengyueh, or whether arrangements with China, including reduction of the rate of duty on Yünnan opium which would now be charged on re-entry as foreign (ie., Indian) opium at the Eastern Coast ports would be a necessary preliminary.
This question is asked with special reference to the possible operations of a Syndicate of Chinese merchants in Rangoon, formed with a view to export Yunnan opium via Burmah.
Mr. Campbell puts the question in a sentence (paragraph 4); “Will mere waiver (ie., by India) of the prohibition be sufficient to divert the Yunnan opium traffic to the Bhamo-Tengyueb trade route ? "
After full consideration, I think the reply must be "No." If the scheme is to be a success, a full understanding must also be come to with the (1) Central, (2) Customs, and (3) Provincial Chinese Administrations.
"
(a.) The Syndicate referred to is, I think, composed of the same gentlemen who presented me with a long "petition" when I was at Bhamo in June last. They appear to be mostly Cantonese resident in Rangoon, who have little knowledge of the actual working in China of either the Customs, the li-kin, or the Yunnan opium trade. Their "petition contained several errors. Their idea was, so far as I could gather, to undertake a species of farm by which they would guarantee to pay so much to Yünnan for the sole legal right to export Yunnan opium via Burmalı, and so much to Burmah for permission to let their cargo through. Imuch doubt if this scheme would be approved either by Burmah or by the Yunnan Government. But this Syndicate is important as showing how awake the Chinese are to the trade advantages to be gained by the removal of existing restrictions.
(b.) The view of the Chinese Imperial Customs authorities is that Article XI of the Burmah-China Convention of 1894 cuts both ways-i.e., it gives Burmah a right to stop importation of opium into Burmah from Yunnan, and it gives China a right to stop its exportation in like manner, in both cases under pain of confiscation.
No doubt in point of fact Article XI was put in by India to protect her opium administration, but the text of the Article, “the importation and exportation of opium across the frontier," is clearly in favour of the Customs interpretation.
Therefore, if Purmah were simply to publicly renounce her right to prohibit the transit of opium across Burmah under Article XI, and Chinese traders were in conse- quence to endeavour to export, their opium might be seized by the Customs or the Taotai here as contraband under Article XI. And the Chinese authorities would endeavour so to seize it unless a full preliminary arrangement had been come to as to conditions of export and payment of duty. Therefore I submit that "mere waiver" would not only not have the desired effect, but would involve the inconveniences suggested by Mr. Campbell at the end of paragraph 4 of his letter to Burmah.
At present, in the case of seizure of Yunnan opium by the Chinese officials at Tengyueh, the Consal can hardly interfere; for either the opium is destined for consumption in China, in which case it is no concern of the Consul, or it is for export to Burmah, in which case China has a Treaty right to confiscate under Article XI.
Nevertheless, I am inclined to think that the best form to commence negotiations with China would be for India to offer to waive her right to prohibit Yünnan opium crossing Burmah, if China will waive her right to prohibit it leaving Yunnan, in both cases under certain conditions which will be mutually advantageous.
2. It is asked: “Is the prohibitive nature of the duty levied by China on the 'foreign' drug the reason for which opium is not at present being sent by sea from Yunnan to Canton viâ Tonquin ?”
The present rule is that native opium, by entering on a foreign territory at once, assumes a "foreign" character for the purpose of payment of duty at the port of re-entry on the East Coast.
My general reply to the question put above must be "Yes." Native, chiefly Szechuan opium, which passes Ichang and proceeds to the East Coast by river and ocean steamers, only pays, under special regulatious, at a very reduced rate; but Yunnan opium, proceeding to the same ports by Burmah or Tonquin and the sea, would be differentiated against and, under existing regulations, treated as "foreign." Thus the duty comes to be prohibitive; but
(a) I believe that a good deal of Yunnan opium does go to Canton province viâ Tonquin; it is sent to the French "leased" territory of Kwang Chon Wan, where there is no Chinese Customs station, and there are very unusual facilities for smuggling in the surrounding country.
(b) Opium arriving by sea from Tonquin at an East Coast port would, to begin with, be charged as "foreign" opium at the rate of 110 taels, or, say, 220 rupees a picul of 1334 lbs. But, further, this opium would have paid previously the Yunnan provincial li-kin, and after passing the Canton Customs, might have to pay Canton provincial dues; for, being in tact native opium, it is doubtful if Consular protection could be given. Further, the transport across South Yunnan to get to French territory is often unsafe. The cumulative effects of the above would be prohibitive, except possibly at rare intervals, when all routes overland were closed by rebels at the same time.
3. It is asked that detailed information be furnished as to the privilege which it would be necessary to secure from China, and the reasons which render them indis- pensable to the success of the scheme.
We should ask (1) that the somewhat arbitrary rule under which native opium which crosses Burmah becomes foreign opium for purposes of duty on re-entering on the East Coast of China be rescinded; this rule is harmful alike to Burmah and to Chinese trade; (2) we should also ask that Yünnan opium going across Burmah to the East Coast should not receive less favourable treatment than Szechuan or other native opium which goes to the East Coast by Yang-tsze steamer and the sea.
Neither of these demands are really of the nature of a concession or privilege to be granted by China.
(3) Further, we should ask for a clear and precise agreement as to what is to be paid and on what account, and to whom and where and when in respect of Yunnan opium transported across Burrual to the East Coast ports. Security will further be necessary that such an agreement will be duly observed; this security will be afforded if
[1844 %—1]
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