2

68

DOMESTIC.

Inclosure 2 in No. 1.

Prince Ching to Sir J. Jordan.

(Translation.) Sir,

Peking, November 20, 1908. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 12th November (quoted in full) respecting the proposed imposition of additional taxes on opium, and to state in reply that the original Memorial of the Board of Finance reads as follows:-

"It is proposed to follow the Kiangsu system of fees leviable on permits, whereby a fee of 60 cash per ounce of prepared opium will be charged from the beginning of next We now propose to make it obligatory on all shopkeepers dealing in the raw or prepared drug to inspect each purchaser's permit, and to charge him a fee of 60 cash per ounce of prepared opium and of 40 cash per ounce of raw opium, these charges being known as permit fees."

year.

From this it will be clear that the shopkeepers are to collect these fees when retailing raw or prepared opium, and that this will be done in places of consumption after the original packages have been opened. There is, therefore, no question of levying taxation in a Treaty port before the opium has been conveyed to the place of consumption in the interior, and there is consequently no infraction of Treaty rules involved in the proposal.

I avail, &c.

Your Highness,

Inclosure 3 in No. 1.

Sir J. Jordan to Prince Ch'ing.

Peking, November 24, 1908. I HAVE the honour to acknowledge the receipt of your Highness' note of the 20th November on the question of the proposed levy of additional taxes on opium, in which your Highness quotes the original Memorial of the Board of Finance, and states that the shopkeepers are to collect the fees of 60 cash per tael weight of raw opium when retailing the drug, and that this will be done in the places of consumption after the original packages have been opened. Your Highness argues that the question of levying taxation in a Treaty port does not arise, and that there is consequently no infraction of Treaty in the proposals of the Board of Finance.

The Memorial of the Board of Finance quoted by your Highness states that it is proposed "to make it obligatory on all shopkeepers dealing in raw or prepared drug to inspect each purchaser's permit and to charge him a fee of 60 cash per tael weight of prepared opium and of 40 cash per tael weight of raw opium." This clearly means all shopkeepers throughout the Treaty ports as well as in the interior. I gather, however, from your Highness' note that the levy of these fees on foreign opium in Treaty ports would be admitted by the Chinese Government to be a contravention of Treaty, and I have the honour to request, therefore, that the Board of Finance be moved to make it quite clear that the levy in Treaty ports is not intended.

I avail, &c. (Signed)

J. N. JORDAN.

Office or Individual.

Foreign.

1909

13th Jan

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1956

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