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I am sending this despatch under flying seal to his Excellency the Governor of Hong Kong.

I have, &c. (In the absence of His Majesty's Consul-General),

L. GILES.

Enclosure 3 in No. 1.

Proclamation issued by Chuang, Resident Superintendent of the Head Office for the Investigation of matters connected with the Prepared Opium Levy,

(Translation.)

IN accordance with instructions received from the Opium Prohibition Bureau, a report was drawn up by this office in which the subject of the purchase of raw opium in Hong Kong by Kiangsi dealers and its subsequent transportation was carefully considered and improved procedure suggested. Instructions were requested as to the action to be taken, and the following reply from the bureau has now been received:-

"Were the Kiangsi raw opium dealers who now make their purchases of raw opium in Hong Kong to be compelled to make them from Shanghai, obstruction to trade would, it is feared, be the result. The deputy in charge of the Investigation Office should endorse on the permit all the places to be passed in transit. The opium will be released and permitted to pass out of the district if the investigation offices at the nearest points after examination find no discrepancy between the permit and the goods. The said deputy should further ascertain the amount of raw opium taken last year to Kiangsi from Canton, and this quantity should be reduced in a definito annual proportion in order that the policy of restriction be duly carried out."

Now, in view of the suppression of opium which is being effected, it is essential that increased restrictions be placed on the amount of opium exported. It has been ascertained that in the whole of last year only some 300 chests of raw opium were exported from Canton to Kiangsi. It is now proposed, taking last year's figures as a basis, to curtail the export of raw opium each year by 30 per cent. In the 2nd year of Hsuan Tung 220 chests will be permitted to be forwarded, all of which must be provided with a permit from this office before being dispatched. In future years a proportional reduction, based on this figure, will be enforced year by year; reductions only and no excess being permitted in order that restriction may be maintained, A request has been made to the Opium Prohibition Bureau to place this on record, and to instruct the merchant Liang accordingly. In addition, this proclamation is issued for the information of Kiangsi opium dealers, who, if they buy raw opium in Hong Kong to be conveyed to Kiangsi, must, so long as the allotted total has not been exceeded, report the quantity to be forwarded to this office and ask for a permit. They will then be allowed to send off the goods. This office will be enabled to notify the local officials and branch investigation offices on the route. The latter will examine and relcase the goods. All difficulty will be obviated, and no omissions will be possible,

Let all tremble and obey.

Hsuan Tung, 2nd year, 9th month, 30th day

Your Excellency,

(November 1, 1910).

Enclosure 4 in No. 1.

Consul-General Jamieson to Acting Governor-General of the Liang Kuang.

Canton, November 12, 1910. WITH reference to previous correspondence regarding the suppression of opium, the late acting Governor-General frequently gave me assurances that legitimate trade in raw foreign opium would in no way be interfered with. Moreover, at the time Great Britain agreed annually to reduce the exportation of opium from India until the trade came to an end, it was understood that China would not place any further restrictions on the import and conveyance to the interior of foreign opium.

I observe, however, that the resident superintendent of the Head Investigation

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Office, on the 1st November, issued a proclamation to the effect that the amount of raw opium conveyed from this province into Kiangsi shall be subject to a yearly decrease of 30 per cent., and that the importers of such opium shall previously obtain from the Head Investigation Office a special permit in addition to the transit certificate prescribed by treaty. I think your Excellency will agree with me that such regulations are a violation of the promises of the late Governor-General and an infringement of the agreement between Great Britain and China, and I have the honour to request you to issue orders without delay to the Opium Prohibition Bureau instructing them to rescind this proclamation at once, and to favour me with a reply.

I have, &c. (In the absence of His Majesty's

Consul-General),

L. GILES.

Enclosure 5 in No. 1.

Sir J. Jordan to Prince Ch'ing.

Your Highness,

WITH reference to Mr. Max Müller's memorandum of the 16th November last, I

Peking, December 2, 1910. have now the honour to enclose a copy of the proclamation issued on the 1st November by the Head Opium Investigation Office at Canton,

In view of the repeated assurances received from your Highness's Board, that the legitimate trade in raw foreign opium would in no way be interfered with, I cannot but express the greatest surprise that such a proclamation should be issued arbitrarily reducing by 30 per cent. annually the amount of raw opium to be conveyed from Kuangtung into Kiangsi province.

An examination of the contents of this proclamation shows clearly that a frequent breach of treaty provisions has been committed by the provincial authorities of Kuangtung in allowing such a proclamation to be issued, and I must request your Highness, therefore, to give orders for the immediate withdrawal of this illegal proclamation.

Awaiting the favour of an early reply, I avail, &c.

(Translation.)

Sir,

J. N. JORDAN.

Enclosure 6 in No. 1.

Prince Ching to Sir J. Jordan.

Peking, December 14, 1910. I HAVE the honour to acknowledge the receipt of Mr. Max Müller's memorandum of the 16th November, in which he stated that a proclamation had been issued by the Opium Investigation Office of Kuangtung, providing for more careful supervision over opium in transit to Kiangsi, and for an annual reduction of 30 per cent. in the quantity conveyed there. Mr. Max Müller further asked that the proclamation be cancelled. Again, on the 2nd December, I received a note from your Excellency sending a copy of the proclamation in question.

My board accordingly sent several telegrams to the Canton Viceroy, and have now received a telegram in the following terms ---

"On receipt of your telegrams I passed them on to the Head Opium Investigation Office. They now reply that when Kiaugsi dealers buy opium in Hong Kong, if they ship it by sea to Shanghai and thence to Kiukiang, Cautou Province is not affected, but if they transport the opium through the interior to Kiangsi, it frequently happens that just after leaving Kuangtung they at once secretly boil the opium, which pours back into the province. Further, that they are thus without any means of investigation, and the licence tax system of the province is seriously affected. considered necessary to make certain restrictions.

For this reason it was

"In view of your communications alluded to above, I have issued orders to cancel the proclamation of the Opium Investigation Office.'

I have the honour to address this reply for your

Excellency's information.

I avail, &c.

Prince CHING,

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