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435

taxes imposed on importations of opium into the Kwangtung

Province are admitted by the Viceroy to be for purposes of

Revenue only. In his telegram in reply to the orders of

the Wai-wu-pu to withdraw the Regulations he states "this

is only a question of raising revenue, it has nothing to

do with the Anti-Opium question" (enclosure to Despatch

of 13th. September, 1910) and he goes on to show that he

anticipates an increase in the Revenue of his Province

from this source of some $4,400,0

* 000

£400,000 annually.

He points out that a proposal to increase the import tax

on Foreign Opium hy 30% would not be nearly so lucrative,

even he says "though the sum (now paid) be doubled the

amount collected would still be smaller than the tax

imposed on prepared opium", e.g. the present illegal tax.

These large increases in the Viceroy's revenue are admitt ally

to be made at the expense of Hongkong merchants, the

discussion you will observe is based solely on the best

means of doing so and has as the Viceroy says nothing to

do with Opium suppression. I may add that the Indian

Government will by these measures be also involved in

heavy loss in addition to the sacrifices voluntarily

made on the assumption that China would act with equal

bona fides.

In

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