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JIOqEI

97

must report the amount of opium brought into their godowns, so as to facilitate the work of investigation; while prepared opium merchants, who buy the raw drug and boil it down, must furnish

It is perfectly guarantees, in order to safeguard the revenue.

clear from this that there is no question of the tax being levied

on raw opium; otherwise, the tax would certainly be collected at the time the raw opium enters the port. Why should it not be levied until after the drug has been brought into the godowns, sold and boiled down? And why should it be necessary to furnish a guarantee and to submit to a number of complex and xIFÍENK vexatious regulations? As regards the time limit within which the prepared opium merchants and opium smokers must boil down the opium, that was introduced with the special object of preventing

storage of the drug.

Liang Chao-t'ang, referred to above,jever since the introduction of these regulations, scrupulously complied with their provisions. It happened, however, that purchasers of raw opium, coming from their market towns or villages or from various parts of the province, could not ordinarily find a merchant in Canton who was acquainted with them and was willing to stand security for them. They were, accordingly, only too glad to offer to pledge ready money, equivalent to the amount of the tax, as security for the tax; and the raw opium merchants were similarily willing, in the absence of a guarantee, to accept this money as security, as in the circumstances they could not refuse to arrange a compromise, and as there was no alternative. Moreover, this method of settlement was decided

#

upon by the raw opium dealers themselves at the time the ques- tion arose. The Kuang Yuan Office never heard of it, and never issued to the raw opium merchants wooden stampa, stating that the licence tax was received at the time of purchase, with instruc- tions that these were to be impressed on receipts.

The British Consul Beneral having pointed out this

state

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