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(This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
37967
[October 9.]
82501.05
(No. 284.) My Lord,
Sir E. Salow to the Marquess of Lansdowne.--(Received October 9.)
Peking, August 21, 1905. I HAVE the honour to transmit to your Lordship herewith, in original, a despatch which I have received from His Majesty's Acting Consul at Tchang regarding the simultaneous payment of opium li-kin for eight provinces.
In case this despatch is printed, I have the honour to request that your Lordship will send me copies, and to suggest that copies might usefully be sent to the Viceroy of India.
I have, &c. (Signed)
ERNEST SATOW.
(No. 8.) Sir,
Inclosure 1 in No. 1.
Acting Consul Ottewill to Sir E. Satou.
Ichang, July 6, 1905. I HAVE the honour to submit the following remarks on the subject of the new scheme, whereby payment in advance at fchang and other places of all taxes aud li-kin on opium coming from the Provinces of Szechuan, Yünnan, and Kweichou exempts it from all further taxation in the eight Provinces of Hunan, Hupei, Kuangtung, Kuangsi, Kiangsi, Anhui, Kiangsu, and Fukien:--
The scheme came into force on the 3rd instant simultaneously at the frontiers of the various provinces.
Its fundamental principle is that the collection of all the taxes on opium is taken away from the provincial authorities and undertaken entirely by the Central Govern- ment in Peking. The provinces receive certain fixed sums and the Central Government the surplus, instead of the Central Government receiving a fixed sum from the provinces, as is the general rule in China.
As a step towards the centralization of power in Peking, and the adoption of a single policy throughout the country with regard to trade, finance, and taxation, the importance of the innovation cannot be exaggerated.
Care has been taken that the provinces in which the single-payment-in-advance system formerly existed still continue to enjoy some small advantages.
In his Excellency Tieh Liang's Memorial it was proposed to eventually include
Shensi, Shansi, Shantung, and Honan in the scheme.
The only provinces left out would then be Chekiang, Chihli, and Kansu.
I have been unable to discover whether opium is produced in Kuangtung, Kiangsi, Hunan, and Kansu.
It is produced in Shensi, Shansi, and Honan, and is certainly exported from the latter.
In Hupei it is grown in the Ichang and Shihnan Prefectures for local consump- tion, the estimated production in 1899 being 2,300 piculs (2,760 cwt.).*
In Chibli it is produced chiefly in Yung-p'ing Fu.
In Shantung Chin-hsiang-Hsien is one of the principal centres, and its production in the province must be increasing, as it was remarked in the Chefoo Customs Trade Report for 1903 that imports of the Szechuan and Yünnan drug have almost disappeared from the Returns. Manchurian opium is, however, imported in large quantities, 517 piculs (620 cwt.) going to Lung-k'ou and 187 piculs (224 cwt.) to Teng-chou Fu in 1903.
In Anhui over 5,000 piculs (6,000 cwt.) were produced in 1902.
* 1 picul has been reckoned as equal to 14 cwt., instead of 1'19 cwt. [2214 i-1]
B