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than would appear warranted by the demand in the market. I cannot help ports having some doubts as to how far their efforts to secure large profits before prices fall to a normal level are deserving of the whole-hearted and sympathetic support of His Majesty's Government.
Sir,
have, &c.
W. G. MAX MÜLLER.
Enclosure 1 in No. 1.
Shanghai Opium Merchants to Mr. Max Müller.
June 20, 1910. SINCE the arrangements between Great Britain and China with regard to the reduction of the export from India of raw opium were finally concluded we have been compelled to address you or your predecessors in office on more than one occasion on the subject of the violation by the Chinese officials of our treaty rights, and their disregard for the direct and implied pledges given by the Chinese Government at the time when the aforementioned arrangements were concluded. As a result of these former protests the abuse which in each individual case gave rise to the protest was remedied, but experience has taught us only in order that it might be replaced by another of a similar or perhaps a more objectionable kind.
We have the honour to hand you herewith a translation in English of a letter addressed to us by the members of the local Opium Guild, from which you will learn in detail the matters of which we complain. We have only to say that the truth of the statements therein made are within our own personal knowledge, and can be borne out by the direct evidence of those engaged in the trade.
Recently a protest has been sent to you by the chamber of commerce at Hong Kong in connection with the formation of a monopoly in Kuangtung, and this is, we believe, still occupying the attention of His Majesty's Government.
The irregular and unfair interference by the Chinese authorities-which interference with the trade in foreign raw opium appears to be induced, not with any bond fide intention of suppressing the use of opium in China, but merely with that of increasing the revenue derived by the Chinese officials therefrom-continues, and the situation has now become so acute and the amount at stake so large that we are compelled to address you in a more emphatic way than we had deemed it would ever have been necessary to have done.
The history of the opium movement and the exact position of it must be known to you, and it is therefore unnecessary to recapitulate more than to state that--
1. The opium trade is an old one, and one in which a very large amount of British capital is invested.
2. The Indian Government sells large quantities of opium to us yearly for export, and allows the export of a further large quantity upon which it levies an export duty.
3. By the treaties with China we are entitled to a free market for foreign raw opium, which cannot be taxed by the Chinese central or local authorities otherwise than is prescribed by treaty.
4. Though prepared foreign opium may be taxed in China, it may be so taxed only at the place of consumption, and then only provided a similar tax is imposed upon Chinese prepared opium.
5. Monopolies by Chinese and other interferences with the free trade in foreign raw opium are distinctly infringements of our treaty rights.
6. By reason of the fact that it is by treaty lawful to import into China foreign raw opium, and there to sell it freely and without interference, large sums of money are invested by us in the drug, and any interference with the rights of a free market to which wo are entitled either directly or indirectly, besides inflicting a very heavy and unjustifiable loss upon us, constitutes a breach of China's pledges, while any neglect on the part of the British Government to support our protests against such irregular and illegal interference constitutes a breach of the obligations of the British Government to us and a disregard of the representations at least indirectly made by that Government to us in extracting from China the assurances which have been given by her, in allowing
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our treaty rights to remain as they are, and in selling us and allowing us to buy opium in India for export to China.
In consequence of the unlawful interference referred to the business in Indian opium has, during the last few months, been brought to a standstill-deliveries have decreased about 75 per cent., and prices have declined 700 taels per chest.
Such a depression in trade is a direct outcome of the unlawful action of the native officials, and we cannot but feel that for the British Government to allow the present condition of affairs to remain unrelieved would amount to a very serious scandal and a grave slur upon the prestige of the nation.
At the present time the loss we have suffered is very heavy, but if the situation remains as at present it will be enormous in view of the fact that we have on hand several thousand chests undisposed of
In addition, we are now threatened by the Opium Guild with a total repudia- tion of their contracts, and, without your support in this matter, the threat of such a course makes the situation so serious that we cannot refrain from asking you to be good enough to insist upon the observance once and for all by the Chinese of our treaty rights, and to secure to us that protection for the trade to which we are justly entitled.
The seriousness of the present position has no doubt already been brought to your notice in connection with the protests received by you from the Hong Kong Chamber of Commerce referred to above, and we wish how to emphasise the fact that we here desire to do everything in our power to seek a redress of our grievances through your good offices.
What we venture to submit ought to be done is that His Majesty's Government should insist upon the Chinese authorities issuing definite orders (and guaranteeing the observance and enforcements of those orders) to all the provinces not to interfere with the foreign raw opium trade so long as duty and li-kin have been regularly paid by the importer.
In the event of it being impossible for you, by reason of the difficulties in the way of obtaining satisfactory guarantees from the Chinese Government, to assure us that we will be in the future protected from improper interference with the trade and that the existing grievances will be redressed, we beg that you will so inform us at the earliest possible moment, and that you will at the same time intimate that our protest has your approval and support, and that in your opinion we are asking for no more than that to which the treaties entitle us.
We are confident that once the Chinese authorities are made to realise that the British Government will tolerate no interference with the legitimate trade in foreign raw opium, they will cease from obstruction and abide by their treaty obligations.
We have, &c.
David Sassoon and Co. (Limited),
A. HOWARD, Manager.
E. D. SASSOON and Co.
S. J. DAVID AND Co.
E. PABANEY.
CAWASJEE, PALLANJEE, AND Co.
R. E. J. ABRAHAM (by his Attorney,
A. G. Moses).
LEONE A. LEVY.
U. MOTANA, SONS, AND Co. (?). B. D. CARA (9).
Enclosure 2 in No. 1.
Letter in Chinese from the Shanghai Opium Guild to Importers re Opium Restrictions.
(Translation.) Gentlemen,
[Undated.]
WE respectfully beg to state that since the commencement of foreign intercourse with our country, a very large trade in opium both Bengal and Malwa was done. Now,
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