[This Document is the Property of His Britannic Majesty's Government.]
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RECO Rro 18 JUN 10)
OPIUM.
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CONFIDENTIAL.
[18616]
[May 25.)
SECTION 1.
Mr. Max Müller to Sir Edward Grey.-(Received May 25.)
(No. 101.) (Telegraphic.) R.
No. 1.
Peking, May 25, 1910.
YOUR telegram No. 75 [of 23rd May: Taxation of opium]. Question was referred to me by telegraph by the Hong Kong Chamber of Commerce on 7th May. I called for report from His Majesty's consul-general at Canton, who telegraphed that the tax was on prepared opium, to be collected in advance from dealers in foreign and native raw opium, and that he had warned Governor- General that differential treatment would be objected to, and pointed out that additional taxation on unbroken packages could not be levied on foreign opium in a treaty port.
I have now received full reports from chamber of commerce and from His Majesty's consul-general. Former desire strict adherence to additional article of Chefoo Convention, while latter refuses to interfere further as long as taxation is not differential. Tax is not being euforced, and His Majesty's consul-general has received no answer to his protest to Viceroy, which I consider goes quite far enough. In my telegram No. 95 [of 17th May] I pointed out that the Indian Government appear to contemplate giving Chinese Government a free hand to increase taxation on Indian opium on sole condition of corresponding and effective increase in taxation of native article.
I propose to inform Hong Kong Chamber of Commerce that, as question has been referred to you by Indian Governmout, I can take no further action pending the receipt of your instruction.
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