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Shanghai, 11th July, 1907.
E. B. Skottowe, Esq.,
Chairman, China Association, Present.
Dear Sir,
Opium Monopoly.
We beg to enclose herein translation of three articles which appeared in Chinese newspapers on different dates, from which you will observe that the Viceroy of Nanking is making rapid preparations to take, on behalf of the Chinese Government, the monopoly of Opium. This, if allowed to come into force, would destroy competition and thereby cripple the trade and is in direct contravention of article 14 of the Treaty of Tientsin of 1858 (ratified 1860) between France and China which is as follows:-
"No privileged commercial society shall henceforth be established in China, and the same shall apply to any organised coalition having for its end the exercise of a monopoly of trade. In case of the contravention of the present article the Chinese Authorities, on the representation of the Consul or Consular Agent, shall advise as to the means of dissolving such associations, of which they are also bound to prevent the existence by the preceding prohibitions, so as to remove all that may stand in the way of free competition."
This Treaty also affords protection to us under the favoured nation clause.
We may also quote article V of the Treaty of Nanking of 1842 which is as follows:-
"The Government of China having compelled the British trading at Canton to deal exclusively with certain Chinese merchants, called Hong merchants (or Co-Hong), who had been licensed by the Chinese Government for this purpose,