This Document is the Property of His Britannic Majesty's Government,

CHINA TRADE.

CONFIDENTIAL.

[26000]

C. O.

322

3334

[July 27.]

JE 13 AUC 00,

SECTION 1,

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received July 27.)

(No. 269.) Sir,

WITH reference to my despatch No. 8 of the 4th January, reporting the closure of the opium monopoly in Kiangsi, I have the honour to inclose copies of correspondence recently exchanged with Prince Ching, in which I had complained that the instructions of the Central Government were being disregarded, and that the suspension of the monopoly in certain districts appeared to be illusory.

Peking, June 11, 1908.

In his reply of the 4th June, Prince Ching maintains that the monopoly has really been stopped, and draws attention to the fact that the licensing of raw opium sellers constitutes a different question altogether. On account of the considerations set forth in my despatch No. 203 of the 6th May, I do not think it advisable at present to press the Chinese Government on the question of indirect taxation by means of licence fees unless specific contraventions of clause 5 of the Additional Article, Chefoo Agreement, can be proved, but I am instructing His Majesty's Consul at Kiukiang to ascertain, if possible, the precise scope of the licensing system alluded to by Prince Ching.

I have, &c.

(Signed) J. N. JORDAN.

Inclosure 1 in No. 1.

Your Highness,

Sir J. Jordan to Wai-wu Pu.

WITH reference to your Highness' note of the 7th January, in which I was informed that the Board had telegraphed instructions on the 1st January to the Governor of Kiangsi to suspend the opium monopoly in Jaochou and other parts of the province concerned, I have the honour to bring to the attention of your Highness reports which I have received from His Majesty's Consul at Kiukiang under date of the 8th May to the effect that the instructions of the Central Government have been disregarded, and that the official monopoly still existed at Tai Ho, Hsin Yu, Yu Kan, and other places, while the fines and confiscations of stock inflicted before the Board's instructions were received have not been made good.

Peking, May 25, 1908.

Representations were made by His Majesty's Consul to the Governor on the 16th January, 22nd February, 26th February, 13th March, 21st March, both in writing and by telegram, and it was not until the 25th March that the Acting Governor telegraphed back that he had again instructed the Magistrates to desist and to return the fines after inquiry into the circumstances. From the attitude of the local officials it appears evident that, while pretending to merely register the opium shops, they are still supporting the monopoly, and I have the honour to request that stringent orders may be telegraphed to the Governor to put an immediate stop to these abuses.

I avail, &c.

(Signed) J. N. JORDAN,

Inclosure 2 in No. 1.

(Translation.) Sir,

Wai-wu Pu to Sir J. Jordan.

I HAVE the honour to acknowledge the receipt of your Excellency's note of the 25th May, complaining of the continuance in Kiangsi of a Government opium monopoly. (Note of the 25th May quoted at length.)

Peking, June 4, 1908.

The Board communicated the purport of your Excellency's note to the Provincial Governor by telegraph, and have now received a reply to the effect that, as soon as ...

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