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representations Wai Wu Pu; have referred the matter to British consul, who rules no breach similar tax being placed on native opium. Chamber of commerce dissent. Regulation comes into force the 9th May. Have advised fully by mail; equest suspension until full advice received.--HEWETT, Chairman "--was dispatched through the Hong Kong and Shanghae Banking Corporation after consultation by the committee of the Hong Kong Chamber of Commerce, who had been approached on the subject by the British firms engaged in the opium trade in this colony.
For your Excellency's information, I beg to enclose copies of the following documents, which fully explain the case :—
Letter from opium merchants to Chairman, dated the 5th May. Translation of proclamation issued in Canton, dated the 7th day, 3rd moon, 2nd
of Suen Tung (16th April),
2nd
year
Translation of proclamation issued in Canton, dated the 17th day, 3rd moon, year of Suen Tung (26th April).
Translation of proclamation issued in Canton, dated the 23rd day, 3rd moon, 2nd year of Suen Tung (2nd May).
Letter from opium merchants to Mr. Consul-General Jamieson, dated the 25th April.
April.
May.
May.
May.
Letter from Mr. Consul-General Jamieson to opium merchants, dated the 25th
Letter from opium merchants to Mr. Consul-General Jamieson, dated the 2nd
Letter from Mr. Consul-General Jamieson to opium merchants, dated the 3rd.
Letter from opium merchants to Mr. Consul-General Jamieson, dated the 4th
Up to the time of writing, no reply has been received to the last letter.
Your Excellency will see from the above documents that, having failed in previous attempts to interfere with the foreign opium trade with a view to imposing additional taxes, the Chinese authorities now intend to levy a tax on all prepared opium of 30 cents per tael. As on previous occasions, the excuse for this is the better regulating of the trade with a view to checking the smoking of opium, the real reason being clearly the collection of revenue.
The collection of this tax is to be farmed out to a Chinese firm in Canton, and all dealers in raw opium will be required to take out new licences. Under these new licences, the dealers will have to guarantee the payment of the tax on all prepared opium (produced presumably from the raw opium which passes through their hands), and have to produce securities guaranteeing the collection and payment to the farmer by them of the new tax on prepared opium.
The British opium merchants have dealt very fully with this question in their letters to the consul-general at Canton, but Mr. Jamieson takes the view that as the tax is imposed on both native and foreign opium, this does not constitute a breach of the treaties. With this view, however, the committee of the chamber of commerce cannot agree.
Although it is true that the tax is levied on prepared opium, it is collected from the raw opium dealers in Canton, who are compelled to take out a new form of licence under which they have to guarantee the payment of this new tax to a Chinese firm i1 Canton, who will hold the farm from the Viceroy.
The committee of this chamber cannot but view this as an attempt to interfere with the raw opium trade, and consequently a breach of the opium convention, more particularly articles 2, 3, and 5 of the additional articles of the Chefoo Agreement signed in London on the 18th July, 1885, it being clearly laid down that no tax is to be laid upon opium, either direct or indirect after the payment of import duty and li-kin until the opium has reached the place of consumption.
Under the new regulations, the raw opium dealers in Canton are to be held liable for this extra tax on their drug, which may be consumed long distances from
Canton.
The committee of the chamber of commerce considered it advisable to telegraph very fully to your Excellency, explaining the situation, and asking you to be good enough to take the matter into your careful consideration.
As they are unaware if the consul-general at Canton has communicated with your Excellency on the subject, they felt it right to give his views in their message,
The new regulation comes into force on the 9th May (1st day, 4th moon, 2nd year
you
of Suen Tung), and the committee therefore trust that your Excellency will at least arrange with the Wai-wu Pu to suspend the enforcement of the new rules in the provinces of the Two Kuang until our written advices are before
you, and will be able to consider the matter fully.
The members of the committee hope that your Excellency will see fit to make such representations to the Chinese Government as may check this last attempt on the part of the provincial authorities to impose (under a new guise) what is in effect a tax on the raw opium trade.
I have, &c.
Enclosure 2 in No. 1.
May 5, 1910.
Opium Merchants to Hong Kong Chamber of Commerce. Dear Sir,
WE beg to enclose copies of three proclamations issued by the Opium Bureau at Canton.
You will observe therefrom that from the 1st day of the 4th moon (i.e., the 9th instant) the Chinese authorities intend levying a heavy tax on raw opium, amounting to no less than 300 dollars per chest, which is a flagrant violation of the additional articles of the Chefoo Convention, according to which no taxes whatsoever can be levied on opium while in transit from the port of entry to the place of consumption. The levying of this tax is farmed to one Kwong Wing Yuen, who will collect it from all the opium dealers, and as it is imposed on raw opium at the port of entry, the same opium could be taxed over and over again while passing through the hands of the different grades of dealers before it reaches the actual consumer. It was obviously with the intention of guarding against such an abuse that the proviso referred to was inserted in the above convention.
This illegal tax, if allowed to be imposed, will be a very heavy burden on the trade, and we cannot too highly protest against this high-handed action on the part of the provincial authorities. As a matter of fact, it has already had the effect of creating a scare among the dealers here, and as a consequence the market is demoralised and deliveries have fallen off considerably.
Under the circumstances, we sincerely trust that the committee of the chamber will take such steps as may be necessary for the protection of our interests.
DAVID SASSOON AND Co.
S. J. DAVID AND CO.
F. P. TALATI.
M. H. E. ELLIAS.
E. D. SASSOON AND Co.
E. PABANEY.
H. M. H. NEMAZEE.
CAWASJEE PALANJEE AND CO.
J. R. MICHAEL AND Co.
Enclosure 3 in No. 1.
Consul-General Jamieson to Mr. Max Müller.
(No. 13.) Sir,
Canton, May 11, 1910. HAVING reference to your telegram of yesterday and my reply sent to-day, I have the honour to transmit herewith copies of the correspondence that has passed on the subject of the proposed tax on prepared opium, which was to have been enforced on the 9th instant, but has not so far been instituted.
I venture to think that so long as taxation is non-differential, the spirit of the additional article to the Chefoo Convention is not infringed.
As to the demoralisation of the trade, to which Messrs. Sassoon and Co. (Limited) refer, I am not in a position to speak, but I am informed that a conflict is going on between the leading representatives of the dealers in native and foreign opium with regard to obtaining the privilege of collecting the new tax.
I have, &c.
[2793 2-1]
J. W. JAMIESON.
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313