[This Document is the Property of His Britannic Majesty's Government.]

;

C

OPIUM.

CONFIDENTIAL.

[6050]

CO 6653

[February 18.]

LCD

SECTION 2.

Oro 17 MAR

No. 1.

Sir,

China Association to Foreign Office.--(Received February 18.)

159, Cannon Street, London, February 17, 1911. REFERRING to previous correspondence on the subject of irregular taxation of opium at Canton, although the committee of the China Association have, since the date of our last letter of the 15th August, continued to receive advices that the irregularities complained of have in no way been ameliorated, but rather aggravated, they have refrained from addressing you again, trusting that the steps taken by His Majesty's Minister in Peking would result in a satisfactory settlement.

We have recently been advised by a telegram from the Hong Kong branch of this association, copy of which is enclosed, that a new development has taken place. Although the telegram is not quite clear, what has happened, apparently, is that the Viceroy has granted to a syndicate, composed of twelve trading hongs, the exclusive privilege of dealing in opium, in consideration of a monthly payment of 240,000 dollars, It is not so stated, but it may be inferred that the purchase of opium from foreign dealers is interdicted to everyone outside the privileged twelve. If that is so, the proceeding amounts to recreating the co-hong monopoly of the early Canton days which was formally abolished by the treaty of Nanking.

Complaint is also made that the levy on foreign opium is to be raised from 30 cents to 50 cents per ounce, being equivalent to a further tax of 200 dollars per chest. On this point the committee of the association await further advices, but they would observe that the right of the Chinese Government to increase the taxes on opium is strictly defined by the additional article to the Chefoo convention. Until that convention is replaced by another convention between the two Governments regulating the import of opium, its strict observance ought to be enforced on all the provincial authorities. But whatever may be the rights as regards extra taxation, the attempt to create a monopoly as above set out appears to be entirely contrary to treaty, and the association trusts His Majesty's Government will take the necessary steps to put an end to it. The committee would further respectfully observe that if a new convention with China is contemplated, it should be made a condition precedent that the recent illegal regulations at Canton and Swatow should be withdrawn and the status quo ante re-established.

I have, &c.

Enclosure in No. 1.

H. C. WILCOX, Secretary.

China Association, Hong Kong, to China Association, London.

(Telegraphic.)

February, 1911. HONG KONG new development opium monopoly question syndicate. Sixteen raw dealers ousted. Recent monopolist undertaken recoup Viceroy for loss anticipated by abolition of gambling monopoly, guaranteeing him 240,000 dollars monthly. In return he has authorised syndicate raise levies from 30 cents to 50 cents per ounce, equivalent to a further increase of 200 dollars a-chest.

[1897 s-2]

462

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