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these precautionary measures, but two shops, the Chuan Fu Cheng and the Ch'un Fu Hsing, relying on their comparatively large capital had attempted to monopolise the trade. Their arrest by the police officials was supported by conclusive proof, and the sentence imposed on them to stop business, which was reported to and approved by the Acting Viceroy Hu, was a measure of exceptional clemency. The man Liang Hei Hou, who was arrested, was the manager of the shop in question, and the intention of the police was merely to obtain from him the licence of the shop for cancellation, when he would be released. The owner of the shop, however, in a reckless manner was making delays and remained in hiding. The measures that had been taken were those laid down by the regulations for the punishment of recalcitrant raw opium shops, and were in no way the concern of foreigners.
The raw opium shops numbered over twenty and all were carrying on their business as usual. No dislocation was being caused to the trade of either Chinese or foreign opium merebauts.
The officials of the bureau farther remarked that the Imperial commands for the prohibition of opium had been in force for three years and that confirmatory edicts had repeatedly been received. The whole nation had received these edicts in an obedient spirit, and the foreign Powers were unanimous in their sympathetic assistance. It was, therefore their duty to carry out their instructions with the utmost energy, for the whole principle of controlling opium would be defeated, were individuals to be allowed to buy opium without a licence or opium dealers to sell to such persons. It would also be impossible to second in a worthy manner the friendly assistance of foreign kindly disposed Powers.
With regard to the increase in price of prepared opium there was no violation of the terms of the Chefoo Convention, as the price was increased (ie., a tax levied) after the opium had been imported and the packages opened.
In June-July of this year, the British consul-general had forwarded a translation of a memorandum drawn up by the Governor of Hong Kong on the subject of the prevention of the smuggling of opium into Hong Kong. The governor stated that it was beyond the wit of man to devise a satisfactory method of stopping the smuggling of opium into Hong Kong for the reason that the price of opium in Hong Kong and the Straits was many times higher than in the south of China. If it was desired to stop this traffic and thereby fulfil the promise contained in China's undertaking with Hong Kong, the only possible method was to raise the price of opium in China, and bring it to a level with the price obtaining in Hong Kong. There would then be no profit attaching to the smuggling into Hong Kong. If therefore measures could be taken to secure this increased price, the prevention of the smuggling traffic would meet with success, and the assistance would be rendered both to their efforts to stop consumption and to the revenue of China.
This the bureau observed was a really intelligent and far-seeing exposition of principle, from which it was obvious that an increase in the price of prepared opium did not involve a breach of treaty, and would have the effect of stopping the smuggling of opium in Hong Kong. The present deliberations on their opium policy were being conducted on the lines of the Governor of Hong Kong's expression of opinion, and would not cause dislocation either to Chinese or foreign opium traffic.
I have the honour to communicate the report of the Opium Prohibition Bureau for your information, and avail, &c.
(Seal of Viceroy.)
Inclosure 5 in No. 1.
Sir,
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Inclosure 6 in No. 1.
Consul-General Jamieson to the Governor, Hong Kong.
Canton, October 19, 1909. I HAVE the honour to forward a copy of a despatch I have addressed to the Governor-General of the Liang Kuang on the subject of the vexatious restrictions which are being imposed on the opium trade in Canton. I have, &c.
Your Excellency,
Inclosure 7 in No. 1.
Consul-General Jamieson to Viceroy Yüan.
J. W. JAMIESON.
Canton, October 18, 1909. I HAVE the honour to refer to previous correspondence on the subject of the measures adopted by the provincial authorities for the control and sale of opium, and to inform your Excellency that I have received telegraphic instructions from Iis Majesty's Minister again to make strong representations with a view to determining the present unsatisfactory condition of affairs at Canton in so far as the sale of foreign opium is concerned.
My predecessor's despatch of the 24th September traverses certain statements made by the Opium Bureau, and I should like to add a few remarks of my own with regard to their report, which was transmitted in your Excellency's communication of the 17th September, 1909.
Paragraph 2 states that the late governor-general ordered all shops to take out licences. It is a fact that a proclamation to this effect was issued, but, owing to intervention on the part of Ifis Majesty's Minister, the same was not enforced, and the dealers were informed that they could go on conducting their business as hefore. Hence the latter are quite justified in asserting that no warning was given to them and that the imprisonment of one of their number and the closing of his premises was quite unwarrantable.
Paragraph 3 asserts that ten or more of the raw opium shops were obeying the regulations. Such is not the case. The opium hongs never agreed to the permit system, and were all along selling to buyers without permits. The bureau's contention that the regulations in no way concern foreigners cannot, I feel sure, be endorsed by your Excellency, as your Excellency must be aware that the Chinese Government have let it be clearly understood that they had no intention of interfering with the wholesale trade in foreign opium. Vexatious restrictions, therefore, which result in the complete dislocation of such trade are contrary to the assurances given by the Imperial Government, and the enforcement thereof might not unreasonably be construed as a breach of faith.
I have accordingly the honour earnestly to request that your Excellency, in the interests of the friendly relations existing between our two countries, will take immediate steps to put a stop to this unwarrantable interference with British tråde, and to set at liberty the dealer Liang Chih Hou, of the Ch'üan Fu Chang hong, who was some time ago arrested at the instance of the Opium Prohibition Burcau.
I avail, &c.
J. W. JAMIESON.
(Telegraphic.)
Sir J. Jordan to the Governor, Hong Kong.
Peking, September 29, 1909. IN reply to the telegram communicated through the Hong Kong and Shanghae Bank yesterday, the following to the Hong Kong Chamber of Commerce:--
"Strong representations against the action complained of were addressed on the 16th September to the Chinese Government, who were requested to telegraph to the Viceroy of Kwangtung to put a stop to it."
Inclosure 8 in No. 1.
Hong Kong General Chamber of Commerce to Sir J. Jordan.
(Telegraphic.)
October 15, 1909. REFERRING to our telegram of 23rd September and your reply to Hong Kong Government, 29th September, position remains unchanged; nothing is being done
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