:
2
The Viceroy requested me by telegraph to transmit this information.
I have the honour to observe that, as regards the enforcement by the Kuangtung provincial authorities of the tax on prepared opium under the new regulations, my board have repeatedly sent instructions by telegraph ordering an amendment of the procedure. From the information received in the present instance, it will be seen that there was no further levy of the tax on raw opium by the provincial authorities, and that there has been no improper behaviour on their part.
(No. 35.) Sir,
Enclosure 2 in No. 1.
I avail, &c.
Prince CHING.
Consul-General Jamieson to Mr. Max Müller.
HAVING reference to your telegram No. 19 of yesterday's date with regard to
Canton, October 6, 1910. the concessions which, according to the Wai-wu Pu, the acting Governor-General is prepared to make in the matter of the recently instituted prepared opium regulations, I have the honour to state that I am making enquiries on the lines indicated, the result of which I shall report by telegraph.
In the meantime, the accompanying summary of charges of contravention of treaty so far brought, and of the Chinese replies thereto, may prove useful.* It will be notel that in no instance is the issue as to interference with opium under transit certificate a clear one. There are always extraneous complications. The one apparently clear case, that of the seizure at Swatow, not, however, submitted through this Office, was promptly dealt with by orders of the acting Governor-General. The opium was at once released, and his Excellency explained to me personally that it was a mistake due to over-zeal on the part of insufficiently-instructed subordinates.
In the long course of discussion-oral and written-which has arisen out of this question, it has become more than plain to me that the Chinese standpoint differs toto cœlo from our own, and that they consider the position which they have taken up, namely, that a policy of opium suppression is incompatible with a free distribution of imported opium, as logically unassailable.
Perhaps it may not be without pertinence if I endeavour to give a synopsis of the respective views of both parties, and to show their bearing on controversy.
the
present Our fundamental stand is taken on the additional article to the Chefoo convention, which lays down that-
li-kin
1. Foreign opium on being imported shall pay 30 taels tariff duty and 80 taels
2. After such payment has been made it may be repacked in bond, and have issued to it a transit certificate freeing it from all further taxes or duties whilst in transport into the interior.
3. Such transit certificate shall have validity only in the hands of Chinese subjects. 4. On arrival at its destination it shall be subject to no other tax or contribution other than such tax or contribution as is levied on native opium.
Although not so specifically stated in the additional article, His Majesty's Govern- ment contend that the payment of transit li-kin in respect of opium for consumption in a treaty port frees it ipso facto from all further taxes or contributions within the treaty port area.
To this contention, however, the Chinese Government have not subscribed. Since the coming into force of the additional article it worked smoothly, and was as a rule faithfully observed by the Chinese Government. From time to time, it is true, attempts were made to tax it indirectly by levies, nominally on prepared opium, but these attempts were invariably successfully resisted on the ground that, owing to the unknown incidence of taxation on native opium, it would thereby be subjected to differential treatment.
In 1906 China first formulated her policy of opium suppression, and invited therein the co-operation of His Majesty's Government. To this adhesion was given under certain conditions, and China commenced a campaign, the vigour of which surpassed previous expectation. For some reason or other, perhaps because she is not herself one
* Not priuted.
3
of the large opium-producing provinces, and hence unable to show zeal by eradicating the growth of the poppy, the province of Kuangtung instituted suppressive measures of a nature more stringent than those in other parts of the Empire against dealers in opiumi of all classes, opium divans and opium smokers. It was sought as far as possible to cut down the numbers in each class, and to hedge round those who were left with restric- tions of every kind. As a result no single individual in the province can handle opium in any shape or form without being in possession of an official permit. Not content herewith it was decided to make the cost of smoking as far as possible prohibitive, and partly with this object in view, and partly in order to supplement a temporary deficit in revenue, the prepared opium levy was introduced, Previous argument that such a levy would be of a differential stamp fell to the ground, as by reason of recent action throughout the Empire the price of and taxation of native opium now equal, if not exceed, the figures in respect of foreign opium. The British contention that it could not be levied in a treaty port, as 99 per cent. of the prepared opium there consists of foreign opium, continues to be resisted by the Chinese, and to charges that the transit pass provisions of the additional article are being contravened, the answer is given that opium under transit pass will not be, and except in one instance has not been, interfered with, so long as the Chinese subjects who handle it are properly authorised by official permit to do so. Transit opium, as stated above, must be in Chinese hands.
It is only natural that measures of this kind should be strongly protested against by the foreign importers, the argument being that every restriction enacted, no matter of what kind, tends to curtail their sales, hamper their business, and involve them in corresponding losses. To such protests the Chinese turn a deaf ear, arguing not illogically thus: "We have undertaken to suppress the opium habit, and we mean to do so.
The way of the opium smoker must be made hard, and this can only be effected by imposing pains and penalties. The British Government, although they have promised their assistance, yet ask us to abstain from exercising supervision and control. How, then, can we accomplish our object?"
It is against arguments such as these that one has to contend, and I cannot help thinking that they are advanced in all sincerity. Recognising to a certain extent their partial justice I have, as previously pointed out in my despatch No. 32 of the 13th September, refrained from urging that proceedings against Chinese subjects for violating the laws of their own country should be abandoned, inasmuch as, so much publicity attaching to everything connected with opium, they are offending with their
eyes open.
I venture to hope that in adopting this course I have not acted contrary to the spirit of my instructions.
I bave, &c.
J. W. JAMIESON.
462