CO129-350 - Public Offices - 1908

to eradicate a national and popular vice in a country whose population is generally estimated at 400,000,000,

China has not hesitated to deal with a question which a European nation, with all the modern machinery of government and the power of enforcing its decisions, would probably have been unwilling to face.

Though it is too early to expect any very definite result, the amount of success (and it is appreciable) which has hitherto been obtained produces the impression that the task which the Government has undertaken can be fulfilled, and shows conclusively that the Chinese people in general consider opium smoking a vice, from which they would willingly free themselves, inspired by what a missionary has aptly described as an ill-defined moral and patriotic motive.

The Court attaches great importance to the conscientious fulfilment of the Decree and Regulations, and the fact that the Central Government has found it necessary to adopt the unusual course of repeating the instructions at frequent intervals would seem to show that they are not altogether satisfied with the response which has been made. Moreover, the Decree of the 10th October, 1907, removing from their offices a number of high dignitaries and Princes who have failed to break off the opium habit within the limit of the prescribed time, indicates the determination of the Palace to insist on obedience.

If this example of the Court is upheld and followed by the authorities in the provinces, there seems no reason why the object of the Decree should not be attained in the specified term of ten years. The Vice-Presidents of the Censorate and of the Law Reform Committee, who were confirmed opium smokers, have recently died in consequence of having had to give up the habit. These sad results of virtue have caused the stringency of the Regulations to be relaxed, and those past 50 years of age are now to be allowed to continue smoking instead of 60 years; while those who have been addicted to the habit for ten years may continue to smoke in diminishing quantity during the ten years allowed for total abolition of opium.

The steps to be taken towards a general suppression of opium smoking practically only commenced in August last, and as the poppy is in most places a winter crop, and is usually sown in the late autumn, no reduction in the area under cultivation could be made last year in obedience to the Decree, while, as the seed is only now being sown, it is too early to judge how far the Regulations are being carried out in this respect.

Before explaining the action which has been taken in each province to carry out the Imperial Decree, it will be well to mention the difficulties with which the Government has to contend.

Foremost among those is the increasing difficulty experienced by the Central Government in enforcing their wishes in the provinces. The opium habit is one indulged in by all classes of society throughout the vast Empire, and is practically the principal, if not only, national stimulant. If opium goes, its place will not long be empty, and if its substitute is one which produces aggressive action rather than sedative inaction, the change will scarcely be a good one.

The loss of revenue will, under present conditions, be less severely felt by the Central Government than by the provinces. In a country where official statistics do not exist, and where there is often great irregularity of procedure, it is difficult to obtain figures which are absolutely reliable, but competent authorities assert that out of the total annual revenue of about 6,500,000l, collected on native opium only 1,750,000l, reaches the Central Government, the remainder being employed in the provinces. Formerly taxation on native opium varied in different provinces, but in July 1906 it was abandoned in favour of a uniform tax of 115 Kuping taels per picul, known as "tungshui," leviable on all native opium, whether for export or local consumption. Once paid, the drug can circulate free throughout the Empire. Owing to the difficulties of enforcing this tax in the Province of Szechuan, the Central Government have permitted a return to the tax formerly levied, viz., 27-28 taels per picul and an additional 5-28 taels levied for railway purposes, which reduces the price of the drug in the province, but increases it in others, where it still has to pay the 115 taels "tungshui" on entering. Foreign raw opium pays 30 taels (Haikwan) import duty and 80 taels li-kin, and receives a Customs stamp which accords free circulation in China.

The prospective loss of revenue, however, is a matter which would not seem to have caused much anxiety to the Central Government, and, as far as can be ascertained, no concrete proposals have yet been made to replace the eventual loss to the Exchequer. In the provinces, however, the progress of the movement has been greatly hampered by the Revenue difficulty and the prospect of dislocated finances.

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Whether China can completely obtain the goal she seeks without Government control of opium, both native-grown and imported, is somewhat doubtful. She is debarred from doing so by Article V of the British Treaty of Nanking of 1842 and Article XIV of the French Treaty of Tien-tsin of 1858, which run as follows:----

Article V of the British Treaty of Nanking, 1842:

"The Government of China having compelled the British merchants 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, the Emperor of China agrees to abolish that practice in future at all ports where British merchants may reside, and to permit them to carry on their mercantile transactions with whatever persons they please; and His Imperial Majesty further agrees to pay to the British Government the sum of 3,000,000 dollars on account of debts due to British subjects by some of the said hong merchants, or co-hong, who have become insolvent, and who owe very large sums of money to subjects of Her Britannic Majesty."

Article XIV of the French Treaty of Tien-tsin of 1858:

"Aucune Société de Commerce privilégiée ne pourra désormais s'établir en Chine, et il en sera de même de toute coalition organisée dans le but d'exercer un monopole sur le commerce. En cas de contravention au présent Article, les autorités Chinoises, sur les représentations du Consul ou de l'Agent Consulaire, aviseront aux moyens de dissoudre de semblables Associations, dont elles s'efforceront d'ailleurs de prévenir l'existence par des prohibitions préalables, afin d'écarter tout ce qui pourrait porter atteinte à la libre concurrence."

Both in former years and since the issue of the Edict attempts have been made both in the direction of interfering with the importation of foreign opium and the establishment of official monopolies, and successfully opposed by Great Britain as contrary to Treaty stipulations.

The financial side of the question in connection with the establishment of a State control or monopoly is a very serious obstacle to be overcome should the matter ever come within the bounds of practical politics. In the cases where State control was recently commenced it was found necessary to seek the assistance of the native opium merchants in order to overcome the difficulty. Although China can deal with native-grown opium as she wishes, wherever the interests of British opium merchants have been affected by these monopolies complaint has been made, and they have in consequence been abandoned, except in the non-Treaty cities or ports where they have been established.

Official control of any undertaking is in these days regarded in China with suspicion and dislike by the non-official classes, who would find no difficulty in convincing the people that the officials, so far from endeavouring to suppress the use of opium, were converting the traffic to their own advantage. However, it is evident that China cannot establish State control of foreign opium without the consent of the Treaty Powers, and, to judge from the past, it is questionable whether she would obtain the consent of all without having to pay very dearly by way of quid pro quo to some, and also doubtful if all would be prepared to approach the question from a purely moral standpoint.

The position of the Chinese Government in regard to the opium question is not dissimilar to that in which His Majesty's Government would find themselves if they desired to suppress the distillation and consumption of whisky in the British Isles without being able, owing to Treaty stipulations, to introduce efficient Government control or prevent the importation of the spirit from abroad.

The amount of opium produced in China in 1906 has been estimated at 330,000 piculs (a picul equals 1331/3 lbs.), and the accompanying map (Annex (C)) shows the various provinces and the amount of opium attributed to each, though the Province of Fukien is probably under-estimated. It will thus be seen that Szechuan alone produces close on two-thirds. Of this total production only 4,730 piculs were exported to foreign countries in 1906, of which the chief items were 4,013 piculs to French Indo-China, and 147 to Hong Kong, en route probably to Formosa. Foreign raw opium imported in the same year was as follows:

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