The former Tantai Ts'ai, recognizing this, called upon the Chamber of Commerce in the 6th moon of this year to invite its members to take up shares, to draw up Regulations for the taking over of the opium and to themselves sell it. This was called the "Boiled Opium Government Bureau, managed by the Newchwang Merchants." This arrangement was duly sanctioned by the Governor-General and Governor, and permission to open was given. In my opinion, the meaning of the words "Newchwang Merchants" contained in the name adopted clearly demonstrates that it is not a Government concern. The presence of the character "official" in the name is explained by the fact that an official is deputed to inquire into the figures of the boiled opium sold. Any loss or gain falls upon the merchants, and has nothing to do with the Government. This arrangement is very different from the Government Bureau for the sale of boiled opium established at Nanking, in which latter the capital is contributed, and the opium sold by the Government. These two establishments cannot thus be compared. Moreover, the words "managed by the merchants" mean that the local merchants have subscribed to shares and have taken over the management, a proceeding which is quite clear.
The sale of boiled opium is now effected in two places in the same way as it was formerly done in the eighteen shops. If you object to the words "sole sale," the eighteen shops did the same, and I have never before heard this objected to, and only to-day is there mention of the words being contrary to Treaty.
Since the inauguration of the Bureau, the sale of foreign opium has not been restricted in favour of the native drug. Granted, then, that the quantity sold is less than formerly, this is explained by the fact that more Chinese give up smoking opium, and of course buy less of the drug. This, however, has nothing to do with the Bureau.
After you called to discuss the question with me the other day, I instructed the Bureau to report upon the matter, as already mentioned to you. On receipt of your despatch, I again weighed the matter.
The reason the former Taotai, Ts'ai, proposed the establishment of the Bureau for the sale of boiled opium by the merchants was to bring together for better control the scattered localities of sale. This does not resemble a trade monopoly, nor does it interfere with the sale of foreign opium. I cannot therefore suddenly order the closure of the Bureau, to the detriment of the scheme of opium restriction.
Should you, however, fear that there will be no market for imported foreign opium, you could take the average of the imports of the last three years and calculate figures, annually decreased, which quantity the Opium Bureau could yearly take over for sale. Then if there is a monopoly or not, it would not affect the foreign opium sales. This would be an exceptional arrangement which would be very equitable. However we arrive at this end, it will redound to the advantage of both sides.
I have, &c.
In submitting this answer, I hope soon to be honoured with a favourable reply.
(Seal of Taotai.)
Page 181
Inclosure 4 in No. 1.
Proclamation issued by the Feng-Chin-Shankuikwan (Newchwang) Taotai Ts'ai Shau-chi, August 22, 1907. (Translation.)
WHEREAS the opium habit is a great evil in the lives of the people, and Edicts have repeatedly been promulgated ordering its strict prohibition so as to remove a chronic disease;
And whereas the opium dens in Newchwang have already been closed, and as malpractices will be rampant if the sale of opium is not under control, and no real advance will be made in the endeavour to yearly decrease its consumption;
And whereas I have received the sanction of the Governor-General and Governor for the establishment at Newchwang of a Government Opium Bureau, to be managed by the Chamber of Commerce; and as the Chamber have petitioned, in reply, their difficulty in doing so; to which I replied that the prohibition of opium was intended to remove an evil from the people, that the Chamber of Commerce had a public duty to fulfil which it should do to its utmost, and that the Chamber could not shirk its responsibilities, but must obey the commands received and devise Regulations and submit them for approval, and appoint a day for the inauguration of the Bureau, as well as get the opium shops to report their capital and present stock to be exchanged for shares, in which there should be no remissness; and should the shops not like to take up shares they must close up, and should there be illicit sale of opium the shop so doing shall be closed and the goods confiscated;
And whereas every province is about to establish Government Opium Bureaux, with the sincere object of stopping the evil root and branch by arranging that the number of smokers and the quantity of opium sold should decrease and not increase, so as to show real progress;
And whereas the local Bureau will be opened in a few days, and the Chairman of the Chamber of Commerce, P'an Ta Ch'iu, and others have been instructed to manage the Bureau;
And whereas, as ignorant persons may perversely create obstructions, the District Magistrate, the Police Department, and the military authorities have all been ordered to see to the carrying out of these instructions:
Now this Proclamation is hereby issued to inform you opium merchants that the Chamber of Commerce will now take over control of boiled opium under Government supervision and with the sanction of the Governor-General and Governor, and that the scheme will have to be carried out. You are, however, hereby authorized to exchange your capital and present stock of opium for shares in the Bureau, so that you shall suffer no loss. This is showing unusual benevolence to you, and if you should have no self-respect and intend to seek evasion you shall be severely punished. I therefore trust you will obey the above injunctions and not again show remissness and cause obstruction, and thus lay yourselves open to punishment, as there will be no mercy shown.
You must tremblingly obey and not evade this important Proclamation.
Inclosure 5 in No. 1.
Opium Regulations.
THE Newchwang Chamber of Commerce herewith humbly submits for sanction the following carefully considered experimental Regulations for the establishment of a Government Opium Bureau for the special sale of boiled opium, to be managed by this Chamber in accordance with instructions received, namely:-
1. The Bureau requests the Taotai to daily send a deputy to the Bureau to check the purchase of raw opium and the sale of boiled opium; to examine the illicit opium; to issue the licences, so as to avoid malpractices; and to report on the management of the Bureau.
2. The Bureau is to be authorized to depute four persons to search out illicit opium and unlicensed smokers, so as to stop secret sales and advance the object of the prohibition.
3. The fee for each licence shall, for the time being, amount to 30 cents, of which 20 cents go to the Government and 10 cents to the Bureau, so as to be equitable.
4. Although the original Regulations call on the Taotai's guard, the soldiers, and the police to apprehend illicit sellers of raw or boiled opium as well as unlicensed smokers, yet the runners of the District Magistrate should also be instructed to do the same, so as to stop evasion.
5. Of the seized raw or boiled opium, one-fourth of the value is to go to the Government, one-fourth to the Bureau, and one-half to the apprehending policeman, so as to encourage searches.
6-(a.) The raw opium is purchased or kept by the eighteen licensed shops, and has already been taken over at a full and equitable valuation.
(b.) Should other towns or people in the interior desire to purchase raw opium from the Bureau to take out of the port, they shall receive a permit from the Bureau.
(c) All visitors at the port who have opium shall have it checked by an official.
(d) All opium which arrives after this, and which has not been bought by the Bureau, shall, if sold to the interior or to another port, receive a permit from the Bureau as proof of due examination and so as to enable it to be transported.
7. All licensed smokers shall daily purchase their allowance of opium at the Bureau. Those living at some distance from the Bureau are requested to buy their total allowance every ten days in accordance with the figures on their licences.
8. The Newchwang merchants have been instructed by the Government to jointly manage the Government Opium Bureau, but there will be difficulties in the beginning. The raw and boiled opium in the former shops has been purchased for a large sum, owing to the large quantity on hand. In addition, the sales will be small and the stock...