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The consul begs that the matter may be promptly attended to, or he will have no alternative but to appeal to the governor to deal with the question in strict accordance with our treaty rights.
(Précis translation.}
May 3, 1910.
Enclosure 7 in No. 1.
Sang Taotai to Acting Consul Barr.
[Quotes consul's letter in full.]
LICENCES should of course be issued impartially to all shops alike, whether inside or outside the city.
According to reports from the Ningpo and other magistrates, no shops have yet taken out licences. A further report has been called for, and upon its receipt a date will be arranged for the proposed interview with Messrs. Sassoon's agent.
Enclosure 8 in No. 1.
Acting Taotai Têng to Acting Consul Barr.
(Précis translation.)
June 3, 1910. THE magistrate's report called for by Sang Taotai has now been received. It is to the following effect :--
The
The local Opium Prohibition Bureau reports that, under No. 1 of the regulations governing the issue of opium-trading licences, no new shops may henceforth be opened, nor may shops for other wares deal in opium in addition thereto, under pain of punishment. It appears that in the Ningpo district there have never been shops dealing exclusively in opium, but the drug has been sold by silver, medicine, and miscellaneous shops (all being retail and none wholesale dealers), which was in contravention of the Hangchow regulations. On receipt of these regulations on the 20th March, the bureau closed all such shops in its district. After their being thus closed for over two months, it is not practically possible to allow them to reopen. statements as to consequent loss of trade are incorrect; the number of consumers is unalterably fixed by the number of licences issued, viz., 5,599 in all; so the consumption of the drug is not in any way affected as stated, either in the Ningpo district or elsewhere; so that it is merely stretching a point to complain that trade is in any way interfered with. The magistrate considers that the bureau has acted in accordance with the regulations, which are very severe, and of which any relaxation would be a political error. The deputing by Messrs. Sassoon of an agent to confer with the Ningpo Bureau, whose actions are determined by the Hangchow regulations, is irregular, since that agent should approach, if anyone, the central bureau
itself.
The taotai is of opinion that the bureau has, in fact, acted in full accordance with the regulations referred to, and that Messrs. Sassoon's trade can be considered in no way affected by the compelling of all the consumers to buy their opium in Ningpo, since there have never been shops outside the city dealing exclusively in opium. Since Messrs. Sassoon's agent can gain nothing by now remaining here any longer, it would be better for him to return to Shanghai.
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Sassoon that their protest is directed against an order of the bureau closing all opium shops outside Ningpo, thus practically extinguishing the retail trade in the country districts, the result being that the large hongs in Ningpo, who buy wholesale from the opium importers, cannot dispose of their purchases, and therefore refuse to take delivery of them from Messrs. Sassoon.
It does not appear from the correspondence how far the hongs are bound under any contract to purchase a certain amount of opium from Messrs. Sassoon, but anyhow that point is not raised, and what Messrs. Sassoon really want us to do is to interfere with the discretion of the Chinese authorities to regulate or prohibit the retail sale of opium in the interior.
In previous cases of a somewhat similar character His Majesty's Government have not questioned the right of the Chinese Government to regulate as they think fit the licensing of retail shops for the sale of foreign opium, or to restrict or prohibit the consumption of opium among the population. They have, moreover, laid down that it would be difficult to maintain that opium regulations have been improperly applied merely because restrictions placed on the retail business of the dealers may indirectly affect the wholesale tra le.
In requesting the taotai that "the bureau be ordered to grant licences in accordance with the regulations to shops both inside and outside Ningpo," you appear unintentionally to have acted contrary to the views of His Majesty's Government as stated above.
I do not think that exception can properly be taken to No. 1 of the licensing regulations enclosed in your despatch No. 1 of the 12th January, nor should I feel justified in acceding to what amounts to a request for official interference in the control of native retail dealers, or in urging the Chinese authorities to issue licences to traders who do not possess the qualifications required.
Until you are furnished with other instructions you should confine your action to the protection of the wholesale trade in foreign opium from any infringement of the rights secured under the additional article to the Chefoo Convention, such as the imposition of any additional taxation in a treaty port, or differential treatment in favour of the native drug.
Enclosure 10 in No. 1.
am, &c.
W. G. MAX MÜLLER.
Acting Consul Barr to Mr. Max Müller.
(No. 1.) Sir,
Ningpo, January 12, 1910. WITH reference to my telegram of yesterday, I have the honour to transmit herewith the regulations respecting the new tax on opium at Hangchow, and copies of the telegrams which have passed between the governor and myself with respect thereto, with translations of each.
I regret that it is not possible for me to complete in time for to-day's post a copy of my further despatch to the governor which I mention in my telegram, and which is only now being sent off
I have, &c.
L. R. BARR.
(Enclosure 1.)
(No. 5.) Sir.
Enclosure 9 in No. 1.
Mr. Max Müller to Acting Consul Barr.
Peking, June 29, 1910. I HAVE received your despatch No. 8 of the 15th instant, reporting that Messrs. Sassoon had lodged a protest with you against certain measures taken by the local Opium Prohibition Bureau, whereby they alleged their trade in the district was seriously affected.
I gather from your despatch and from the letters addressed to you by Messrs.
(Translation.)
(Telegraphic.)
Acting Consul Burr to Governor Tsêng.
Ningpo, January 8, 1910. PROPOSED taxation of foreign opium by Hangchow Opium Suppression Bureau infringes treaty provisions that no further tax beyond duty and li-kin shall be levied. Beg you will immediately order strict prohibition of tax.
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