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whenever this is to their monetary advantage, merely on the plea that funds are required for their local treasury.

The committee of this chamber again protests most earnestly against these continued breaches of treaty, and urges upon His Majesty's Government the necessity for prompt action, as otherwise we fear serious loss to our general trading interest with China.

The earlier history of this colony is one long record of similar exactions imposed upon British commerce by the Canton officials, commencing with raw opium and subsequently extended to other branches of trade.

Bearing this in mind, the committee realise to the full the grave menace of all our trading interests which may result from this continued and prolonged defiance both of the central Government at Peking and of Great Britain and her treaty rights by the local Kwangtung officials.

I have, &c.

(Translation.)

Enclosure in No. 1.

Notice.

·

[Signature illegible], Chairman.

CHAN, Provisional Treasurer of Kwong Tung, &c., appointed by Imperial command, issues a notice for general information.

The matter in connection with the levy of taxes was submitted to his Excellency Teang, late Acting Viceroy of the Two Kwongs, who issued instructions to the effect that as complaints were repeatedly laid against merchant Leing Chiu Tong in his undertaking the management of the licence fees, and as the management was unsatisfactory it was proper that he should be suspended. Thereupon I, the treasurer, in conjunction with the Taotai of Industry, went more than once to the General Chamber of Commerce to call together the Raw Opium Guild to discuss the course of action. Subsequently Chui Hung Yau, Jung Piu Tun, and others, merchants of the guild, proposed and prepared amended regulations and applied to undertake the management. After thorough investigation had been made a joint report was made to his Excellency Cheung, the Viceroy, who verbally directed that Chui Hung Yau and others, merchants of the said guild, be allowed to undertake the management. An order was thereupon issued authorising them to establish them the Fuk Yuet Company, Limited, and directing them to commence (the payment of) the taxes and the collection (of fees) from the 1st day of the 1st moon of the 3rd year of Suen Tung (the 30th January, 1911). Leung Chiu Tong, the merchant of the Kwong Yuen General Association, should cease paying the taxes and terminate his management at end of the 12th moon of the present year (the 29th January, 1911). A report was also submitted (to the authorities), stating that circulars had been sent to the local officials of various districts for compliance.

All the above is on record.

Now the said merchants, Chui Hung Yau, Jung Pui Tun, and others, have fully prepared the sum of 80,000 dollars to be weighed at 7 (tael to the dollar), being advance deposit of the taxes, and submitted two orders for that sum for collection; they have also prepared concise and clear rules regulating the mode of procedure and regulations for the prevention of smuggling, requesting that they be placed on record, and that notices be issued to inform the people and to direct all officials, to afford the necessary protection.

The concise rules, eight in number, having been scrutinised and found practicable, should be approved. Besides collecting in full the advance deposit of taxes paid in, and requesting the authorities to place the above facts on record and issuing orders to various districts for compliance, it is right that a notice should be issued for general information. This notice is therefore issued and is to be complied with by the merchants, scholars, and the populace of the whole province-You should know that Chui Hung Yau, &c., merchants of the said guild, have been authorised to take over the management of the licence fees for the whole province on their undertaking to pay the taxes, the object being to devise means for making good the revenue from the gambling (monopoly) and to assist in opium suppression. The levy (of the fees) shall be put in operation from the 1st day of the 1st moon of the 3rd year of Suen Tung, and the undermentioned rules shall be complied with. You are not to disobey or make

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sport of them, otherwise you will be severely dealt with. All should respectfully comply with this special notice.

*

The eight concise rules are set forth as follows:-

1. By the regulations originally framed by the General Association for Opium Suppression, the proportion fixed is 50 per cent. of prepared opium, being obtained from every tael of raw opium,' and a licence fee of 30 cents is to be paid on every tael of prepared opium after preparation. It is also declared that the fee shall be gradually increased as the consumption of prepared opium gradually decreases. The sources of the foreign and native opium are already diminishing day by day in the present period of opium suppression, with the natural consequence that the consumption of prepared opium daily decreases. The fixed rule as to the gradual increase of the fee payable should therefore be complied with. The sum of 50 cents shall be paid on every tael of prepared opium instead (of 30 cents) from the day of commencement of the present management. Further increase shall be made in future decrease in consumption takes place so as to be in conformity with the object of assisting in the suppression of opium.

2. All prepared opium shops and smokers shall apply for the issue of a certificate for purchasing raw opium, and also prepared a joined note stating that the raw opium shall be converted into prepared opium within the period of one month before they shall be allowed to purchase raw opium and to commence preparation. The licence fee shall be paid accordingly when the opium is prepared. The vendor of raw opium shall examine the certificate and the joined note to see if they correspond, before he is allowed to sell the opium.

3. The various raw opium shops when importing opium shall report the quantities entering the godown to the principal or branch offices of these merchants' company after the tariff and li-kin duties have been paid. When opium is sold the quantities leaving the godown shall also be reported. If the opium is to be sent to some other place, the place of consumption shall also be reported in order to facilitate verification. 4. The licences for carrying on business for the prepared opium shops shall all be supplied for through these merchants (ie., the Fuk Yuet Company). These prepared opium dealers shall be communicated with, so that they will come to the principal or branch offices of the company to deliver up their old licences for cancellation in exchange for new ones. All the licence fees shall be collected and paid through these merchants (i.e., the Fuk Yuet Company).

5. All dealers who send raw opium into the interior for sale must have a licence for carrying on business before purchase or sale can be allowed. Should there be no licence for carrying on business and (the goods) be seized, if the packages have not been opened, the merchants (ie., the Fuk Yuet Company) shall find out to whom the goods belong and restore them in their original packages to their owner, so that the foreigners may have no pretexts. As going into the interior for purchase or sale (of opium) without a licence for carrying on business constitutes an intentional breach of the rules, punishment should be meted out in accordance with the rules.

6. Not possessing the certificate for purchasing raw opium and the joined note for preparing opium, and not reporting in accordance with the rules the quantity and weight of goods entering or leaving the godown, and also the place of consumption, shall all be considered as violation of the rules, and punishment shall be meted out. Besides being dealt with in accordance with the rules, the licence for carrying on business shall be cancelled in the case of repeated offences.

7. When smugglers smuggle illicit prepared opium into the interior, or when persons having no licences for carrying on business purchase or sell (opium) in contravention of the rules, a fine of twenty times the proper licence fee shall be The houses or vessels where illicit imposed as soon as (the opium) is discovered. prepared opium is stored, or where prepared opium is privately sold, shall be attached as a warning to others.

8. Sixty per cent. of the proceeds from the realisation of illicit prepared opium seized, and of the fines, shall be set as a reward for the informers, and as a bonus to the excisemen making the seizure, in order to encourage them to further efforts. The balance shall be transferred to the public fund, 76 per cent. of which shall be paid to the officials and 24 per cent. retained by the merchants.

Notice issued on

day, 12th moon, 2nd year of Suen Tung.

567

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