4
In actual practice, however, the importers of raw opium are clearly to be held liable for the payment of the new tax which is to be collected in Canton. They are only permitted to carry on business under licences issued by the monopolists, and are entirely in the hands of these persons who will now be represented by the guild.
REGULATION 3.
Section 11. The annual revenue derived from this new impost on opium is estimated at 3,800,000 dollars.
REGULATION 4.
Section 13. The Government receive 70 per cent. of the sum collected to replace the loss on gambling and 3 per cent. for general revenue.
The goodwill of the importing firms is purchased by 20 per cent, of the revenue, while 7 per cent. is allowed the monopolist for working expenses. In a previous despatch your Excellency has been advised that, according to the terms of their licences, smokers can only purchase prepared opium from certain shops whose names are given.
Under these new regulations, no one can import raw opium unless bolding a licence from the monopolist.
A clear and flagrant breach of treaty, as the guild will not allow any outsider to engage in the business.
In view of the above facts, the committee of this chamber trusts your Excellency will realise that the proposed change is one in name only, and does not in any way relieve the situation.
We trust therefore that your Excellency will again protest against this illegal interference with British trade, and impress upon the Chinese authorities that the whole arrangement with regard to the collection of this new tax and the formation of a monopoly must be abandoned, and no further steps taken by the provincial authorities until such time as the two Governments have terminated their discussions as to the future control of the raw opium trade.
Your Excellency will recollect that when the chamber first heard it was proposed to submit the question to a full discussion in Peking we requested that, pending this, the existing arrangements should be suspended. This, however, has not been done. By agreeing to a discussion, the Central Government apparently admits that the provincial officials have acted beyond their powers.
While quite aware of the situation the latter pay no attention to Peking, but continue to levy the tax and to collect as much money as possible until they are compelled to discontinue their illegal exactions.
Your Highness,
I have. &c.
EDBERT A. HEWETT, Chairman.
Enclosure 3 in No. 1.
Sir J. Jordan to Prince Ch'ing.
Peking, December 22, 1910. DURING the past six months repeated representations have been addressed to your lighness's board by this legation with reference to the opium regulations which have been enforced by the provincial authorities of Kuangtung. These regulations provided for the levy of a tax on foreign opium in addition to the consolidated duty, and the collection of the tax was farmed out to the Kwang Jung Yuan firra.
I have now been informed by a telegram from His Majesty's consul-general at Canton that the Viceroy has given his adhesion in principle to the transfer of the collection of the tax to a guild.
The regulations are in themselves, as Mr. Max Müller has frequently pointed out, an infringement of treaty provisions and of the friendly agreement between the two Governments for gradual reduction of import, and the situation would become further aggravated if a guild is to be empowered to collect a tax upon an article of foreign import.
I have the honour to invite your Highness's serious attention to this matter, and I consider it my duty to record a strong protest against this further disregard of treaty.
I avail, &c.
J. N. JORDAN.
0
[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[3016]
Sir,
..i
No. 1.
57334
[January 26.30
SECTION 3.
24 FEB 1
India Office to Foreign Office.-(Received January 26.)
India Office, January 25, 1911. WITH reference to your letter dated the 31st December, 1910, forwarding a copy of telegram No. 211, dated 30th December, from Sir John Jordan, I am directed by the Secretary of State for India in Council to enclose a copy of the telegrain from the Government of India, giving their views on the requests of the Chinese Government as summarised by Sir J. Jordan.
2. As regards the extinction of the Indian opium trade before 1917, Lord Crewe is willing that an assurance should be given to the Chinese Government in the form described by the Government of India, provided that an agreement in all other respects satisfactory has been previonsly arrived at.
3. As regards the extinction of Indian trade by the provinces, if the Chinese Government should press for the adoption of Sir John Jordan's suggestion, notwithstanding his apprehension that it may prove impracticable, and if a satisfactory agreement on other points is reached, Lord Crewe considers that an undertaking might be given that His Majesty's Government, on proof being afforded to the satisfaction of Sir Alexander Hosie, or his successors, that opium cultivation has been permanently suppressed in a province, and the import of native opium into it genuinely stopped, will assent to the cessation of the issue of transit passes for foreign opium to that province. As this would be a relinquishment of the right of transit secured by the additional article to the Chefu Convention, the previous express assent of His Majesty's Government in each case would not be an unreasonable stipulation.
4. As regards the earmarking of chests for China, Lord Crewe has nothing to add to what is said in the Government of India's telegram as to the conditions on which carmarking would be continued, and would eventually be made effective by treaty revision.
5. I am to suggest that, if Sir Edward Grey sees no objection, instructions to the above effect may be given to Sir J. Jordan.
Enclosure in No. 1.
I am, &c.
R. RITCHIE,
Government of India to the Earl of Crewe,
(Telegraphic.) P.
[Received January 11, 1911.] YOUR telegram of the 2nd January. Opium negotiations. The following are our views on the three important questions discussed by Sir J. Jordan in his telegram No. 211 of the 30th December -
1. As to the total extinction before 1917 of the Indian export to China: It cannot be admitted that the reduction of the indigenous production by 30 per cent. during the last three years has been proved by China. In order that an opportunity of collecting evidence may be given, we are continuing our proportionate reduction this year, relying on China's good faith for the prohibition of improper restrictions on our legitimate trade, and, by way of showing conclusively our willingness to assist the Chinese Government, we would even agree to their being given an assurance that, if the native production of opium is completely suppressed before 1917 (and its suppression is clearly proved to the satisfaction of Sir A. Hosie or his successors) we will forthwith put an end to the Indian exports to China. But this might entail very serious dislocation of our finances and hardship to Indian producers and merchants, and we strongly urge that no such assurance should be given until a satisfactory agreement on all other points is offered by the Chinese Government.
2. As to the extinction of the Indian trade by provinces. We share Sir J. Jordan's doubts as to the practicability of this proposal. We could not accept the prohibition
[1857 cc-3]