This Document is the Property of His Britannic Majesty's Government. 317
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separate notice will be issued, and a date fixed for inquiries regarding the number of opium smokers, in order that permits may be granted to them. As some time is required before this scheme can be carried out and such inquiries completed, opium smokers should not buy prepared opium except from the agencies of this Bureau where officially prepared opium would be sold. Smokers are not allowed to boil opium themselves, as it is against this prohibition. The use of opium cinders as a mixture for boiling opium is The officers in also prohibited, such cinders should in all cases be sold to the officials. charge of agencies of this Bureau are directed to purchase all such opium cinders which should be handed over to this Bureau, when officially prepared opium is distributed to them in the proportion of 3 oz. of cinders to 10 oz. of officially prepared opium, Snch cinders will be examined and paid for according to quality. Opium smokers desirous of selling cinders to this Bureau may do so at any time, and they will receive This is done in order to payment at once without any detention or trouble. encourage people to sell cinders to the Bureau willingly, and to put an end to private boiling of opium.
It is hoped that all merchants in charge of agencies for the sale of officially prepared opium and opium smokers should obey this notice implicitly and fully.
CHINA TRADE.
CONFIDENTIAL.
[33102]
[October 5.]
SECTION 3.
No. 1.
Sir J. Jordan to Sir Edward Grey.—(Received October 5.)
(No. 394.) Sir,
Peking, August 19, 1907. I HAVE the honour to transmit to you herewith copy of a despatch which I have received from His Majesty's Acting Consul-General at Cheugtu, inclosing translation of a Proclamation, issued on the 4th July by the Head Li-kin Office at Chengtu, announcing the abolition in Szechuan of the consolidated tax of 115 Kuping taels per picul on native opium, the closing of the opium collectorates within the province, and the substitution of a tax of 27-28 taels per picul, with an additional levy of 5'28 taels for railway purposes, on all native opium, whether purchased for local consumption or for export from the province.
The consolidated tax of 115 Kuping tacls per picul was instituted in Szechuan in July 1906, but the provincial authorities found themselves unable strictly to enforce the collection, and at Chungking, whence there is a considerable export, the traffic in opium received a check, for, although exporters from the port were in a position to pay the consolidated tax, growers could not so readily find the money, and, although the official specially delegated to control the opium collection at Chungking arrived there on the 21st August, opium reported at the Imperial Maritime Customs for shipment down the Yang-tsze continued, until the end of 1906, to pay the duty of 20 Haikuan taels per picul on export, and the consolidated tax of 115 Kuping taels was levied on arrival at Ichang.
These taxation difficulties led to representations being made by the Acting Viceroy to the Board of Revenue, and to the sanction by the latter of the reduced taxation laid down in the Proclamation. The effect of the change is that all opium grown in Szechuan, whether consumed in or exported from the province, is now liable within the province to a tax of only 27-28 Kuping taels, and a levy of 5-28 Szechuan taels per picul for railway purposes. The great bulk of the opium grown in Szechuan is consumed in the province, and by the new arrangement it is liable to payment of less than 30 per cent. of the consolidated tax of 115 Kuping taels, and, as the provincial authorities have been unable to enforce the latter in all districts, it may be doubted whether their efforts will be more successful in the case of the reduced taxation.
(No. 36.) Sir,
I have, &c.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Acting Consul-General Fox to Sir J. Jordan.
Chengtu, July 8, 1907. I HAVE the honour to inclose copy and translation of a Proclamation, issued by the Head Li-kin Office at Chengtu on the 4th July, announcing that the levy of the "t'ung chuan" of 115 taels per picul on native opium in this province is to be discontinued, and that hereafter all opium, whether for local consumption or for export, will be taxed at a uniform rate of 27-28 taels per picul, with an addition tax of 5-28 taels for railway purposes.
Mr. Bristow, in his despatch No. 31 of the 22nd June, reported that the customs cxport duty on native opium had been fixed at 20 taels, dating from the 10th June, and he added that the condition of affairs was again that reported in his despatch No. 22 of the 23rd August, 1906, namely, a customs duty of 20 taels, a li-kin of 5-28 taels, and a railway tax of 5-28 laels.
As the terms of the Proclamation above referred to appeared to be at variance with this statement, I asked the Acting Viceroy on the 6th instant to inform me exactly what dues native opium exported from Chungking would pay under the new Tariff, and his Excellency replied that opium for export would pay 20 taels customs duty, 7-28 taels li-kin, and 5-28 taels railway tax.
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