2
disregard it. Formerly, the question of the enhancement of duty was the only matter under consultation, but now it is necessary to consider the question of the period during which opium may be imported.
4. The proposal of the Board for a shortening of the period is not an absolute unconditional shortening, but a shortening to be determined in accordance with the provisions of the Bill (of the Senate) in regard to native opium, the reason being that China will treat Indian and native opium on the same footing. It would be very unjust if, when native opium is entirely suppressed, Indian opium should still be spread over China. A reduction of the period, then, is only fair, and in no way conflicts with the original intentions of the British Government,
5. On receipt of the reply from the Board of Finance, the Board will at once address a note to Sir John Jordan proposing certain points which should be discussed.
December 7, 1910.
[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[46927]
(No. 441.) Sir,
622.
[December 29.1
SECTION 2,
Feet 7 JAN || No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received December 29.)
Peking, December 6, 1910. IN my telegram No. 194 of yesterday's date, I had the honour to report on the unsatisfactory result of my interview with the presidents of the Board of Foreign Affairs in regard to the draft agreement submitted to them by Mr. Max Müller for the progressive reduction and final extinction of the importation of Indian opium into China, and the changed attitude of the Chinese Government towards this draft agreement, based, though it was, on proposals originally emanating from the Wai-wa Pu, on account of the strong agitation that has sprung up here during the past weeks in favour of the immediate prohibition of opium smoking, and therefore of trade in opium.
Before entering more fully into the present state of affairs as disclosed at that interview, I will describe the course of the negotiations that have been proceeding in Peking since Mr. Max Müller telegraphed to you on the 27th October (No. 175) that he was drawing up a draft agreement for presentation to the Chinese Government in accordance with the instructions conveyed to him in your telegram No. 138 of the 24th October. This draft agreement, of which I have the honour to enclose a copy, contained no reference to the offer of His Majesty's Government to agree on certain conditions to an increase of the consolidated import duty, as Mr. Max Müller was anxious, unless the Chinese Government objected, to treat this question quite separately.
Mr. Liu Yuk-lin had meanwhile left for England, and Dr. Yen, an official of the Wai-wu Pu, had been designated to continue the negotiations. Mr. Max Müller accordingly on the 1st November handed to Dr. Ven a copy of his proposals for the consideration of the Wai-wu Pu. On the 5th November Dr. Yen came to see him, and said that the Ministers of the Wai-wu Pu were anxious to discuss the question of the enhanced import duty simultaneously, and requested Mr. Max Müller either to restate the offer of His Majesty's Government in an official note or to embody it in the agreement. Mr. Max Müller accordingly drafted a note to Prince Ching, repeating on behalf of His Majesty's Government the offer to agree to the enhance- ment of the consolidated import duty on Indian opium on the conditions laid down by the Indian Government. This dratt he submitted to Dr. Yen, only to be told by that gentleman on the 10th November that his Ministers had changed their minds, and now preferred that the offer should be made part of the agreement itself. For this purpose, Dr. Yen said, the Wai-wu Pu had prepared a draft article, which he handed to Mr. Max Müller, a translation of which I beg to enclose. He gave Mr. Max Müller and Sir A. Hosie to understand that, if this article could be accepted as it stood, there would be no difficulty about the acceptance of the rest of the agreement. He raised no objections at all to the principles of the draft agreement, but mentioned certain clauses in which the Wai-wu Pu suggested slight modifications, those clauses being 1 (b), (f), and (g). Mr. Max Müller replied that though he thought that there would be no difficulty in meeting the wishes of the Wai-wu Pu in regard to the clauses in question, he did not consider the new draft article submitted by Dr. Yen as practical or acceptable, but he promised nevertheless to study it in consultation with Sir A. Hosie with a view to discovering some compromise that might be acceptable to both parties.
"On the morning of the 14th ultimo Mr. Max Müller had a further interview with Dr. Yen, at which Sir Alexander Hosie was present. He explained to Dr. Yen that he was prepared to meet the objection of the Chinese Government to article 1, clause (b), by inserting the words, "accompanied, if such be the desire of the Chinese Government, by a Chinese official.” The clause would therefore read: "During this period of seven years it shall be permissible for the British Government to obtain continuous evidence of this diminution by local enquiries and investigation conducted by one or more British officers, accompanied, if such be the desire of the Chinese Government, by a Chinese official. Their decision as to the extent of cultivation shall be accepted by both parties to this agreement."
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