578

10

last quotation would be about 2,000 taels per chest. If that figure is correct, the present opium duty plus li-kin would be barely 5 per cent., and opium would thus be really taxed ad valorem at a lower rate than ordinary goods, on which duty plus li-kin, ie, transmit dues in lieu of li-kin, is 7 per cent.

6. From these considerations two things are evident: that China during the last thirty years has been getting less duty than she had a right to expect by any- where from 3 to 23 per cent, ad valorem. The loss therefore on a trade representing 35,000,000 taels a-year must have been very considerable. It has, in fact, now reached a reduction which may be permissibly described as intolerable. That China, therefore, should demand a largely increased duty and li-kin at this time seems only fair.

If

Regarding the collection of ad valorem duty, no real difficulty can be foreseen. the British authorities are conciliatory as they may be expected to be, the Inspector- General of Customs should be able easily to devise a scheme of ad valorem duty collection.

Just to suggest the lines on which duty might be levied, one may take as a basis the price at which the opium is sold in India. The sales there are all under Govern- ment control, and the price can be, and it is believed always is, officially made known. It can be assumed that there would be no trouble about getting the Indian Govern- ment to give China the official figures of prices realised for the various kinds of opium at sales in India during any particular month, and if these were telegraphed say, to the Kowloon Commissioner of Customs, they could be made to serve as a basis of the valuation on which duty would be paid. The Kowloon Commissioner, who, living at Hong Kong, is in the centre of the opium trade in China, could then fix the rate to serve as duty value during each month at all the ports of China, according to the rates realised in India during the preceding month.

Whether to the actual sale price in India anything, and how much, should be added to bring the duty valuation more into accord with Chinese market value, is a matter for consideration. Following the principle of the second paragraph of rule 1 appended to the import tariff, it seems fair to add enough to represent cost of freight and insurance.

This system would secure a fair official valuation, which no merchant would have any right to dispute. Although the valuation thus obtained might seem at times small as compared with the selling price at a particular moment, on the whole China in demanding even a 50 per cent. duty on Indian sales prices plus freight and insurance charges would not be unreasonable, and still more reasonable if native opium is taxed to the same extent.

0

1911

reign Offic

Date.

Nech.

Last previous Paper.

733

bor. Conf. I april

MONG KONG

10797

M. F. N. Greatment of Trade

vilis

10737

-D

belwiser Hangtong & thing.

sends com desp. from AM. Minidis al Peking groing his

My Havests suggestion for tanning. Propose, dis J. Jordan she be told to like no action in matter.

I Hill Coltiva

hr. Con

I think

Le

must

mi 20 news

ns

་གུ་ཡངས་རི་ན,7

бер сори

(33,413). Wt.28,082---50. 40,000. 11:10. A.E.W.

ext subsequent Paper

22581

that no action whe taken to claim mort

taroused nation thatment with aged & trade

the anton Kowloon Reitong.

In the mesent state (Chinese opinion there is getting extra times, expecially

no chance of our

ar

other nation's have not even asked for, much

has obtained, tem

3

Comeur

+ com com conf. & for 2F TO

whe

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