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lays stress on the desire of the Hongkong Government to prevent the smuggling of opium into Hongkong as an excuse for levying increased taxation on Opium in Canton. We beg to enclose copy of the Viceroy's despatch to Mr. Fox dated Canton 17th. September, 1909 for your information. The existence of Treaties between China and Foreign Powers is entirely ignored, neither is any reference made to the undertaking given barely a year ago to the British Minister by the Wai-Wu-Pu to which
we have referred in the first part of our letter.
A most important fact, to which we beg to draw your attention is that the Indian Government have given the Chinese Government most practical support by definitely reducing ship- ments of opium from India to China and in the course of a few
years this trade will entirely cease, therefore these vexatious regulations of the Chinese Government are absolutely unnecess- ary as far as the trade in foreign opium is concerned, and we must conclude that they are being imposed by them in order to derive financial advantage from the situation.
The fact that for a considerable time the Kwantung Authoritire have with impunity been infringing the Treaties and ignoring the promise given to the British Minister by the Wai-Wu-Pu, has led to these obstructive regulations being enforced in other districts, and complaints have been received from Hoihow, Nan Hung and Wutin to the effect that monopolies are being established, and in Wutin (Fokien Province) the importation of Foreign Opium has been prohibited.
Only recently Sir Edward Grey, the Secretary of State for Foreign Affairs, stated in Parliament that while he is
prepared to give legitimate support to the Chinese Government,
• the Treaties must be firmly adhered to. We maintain that the British Government have given the Chinese practical proof of their desire to co-operate with them by reducing the yearly import of foreign opium into China and in consideration of this
generous