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I had the honour in my telegram No. 104 of this date to submit in full for your approval the compromise which had thus been arrived at on these last outstanding questions.
In order to place you in full possession of the state of the negotiations as they stand at present, I have the honour to enclose the last draft of the proposed agreement and of the memorandum relating to the treatment of stocks and uncertificated opium.
The Chinese wish at present is to exclude the memorandum from the body of the agreement and make it either an annex thereto or the subject of an exchange of
I have, &c.
notes.
Enclosure 1 in No. 1.
Memorandum dealing with Indian Opium in Bond,
J. N. JORDAN.
IN the negotiations between the Chinese and the British Governments the question has arisen as to the status of Indian opium which is at present in bond in Chinese treaty ports and Hong Kong. The amount of such opium is so very large that were the Chinese Government to regard it as of the same status as certificated Indian opium, the new agreement, which has for its chief object the effective reduction of the import of After a verbal Indian opium, would be practically nullified for the next four years. exchange of views the following precedure is suggested for the disposal of the Indian opium now in stock (bond).
1. On the part of the Chinese Government :--
(1.) The Imperial Customs will be instructed to begin at once the keeping of separate and accurate returns of certificated opium arriving from India.
(2.) On the date of signature of the agreement, a stock of Indian opium in bond in Chinese treaty ports and Hong Kong shall be taken.
(3.) Certificated opium shall be allowed to remain in bond. Uncertificated Indian opium in bond in ports other than Shanghai and Canton shall be either imported and pay duty, receiving the usual treaty documents and labels, plus a special label, or to be sent in bond to Shanghai and Canton and landed in bond there.
(4.) Uncertificated opium arriving in Chinese ports after the signing of the agreement other than Shanghai shall not be allowed to be landed, but shall be sent to Shanghai to be landed in bond there.
(5.) Within two months from date of signature of agreement uncertificated opium may be imported from bond at Shanghai only and in enjoyment of the usual privileges.
(6.) Uncertificated opium cannot be re-exported in bond to other treaty ports. (7.) After two months from date of signature the landing of uncertificated Indian opium will not be permitted at Shanghai or any other port.
2. In return for the privileges thus extended to uncertificated Indian opium the British Government will agree to the following arrangements :-----
(1.) To acknowledge as correct the returns of the Imperial Maritime Customs of the stock of Indian opium in bond when it is taken on the date of signature of the agreement; and also the returns of uncertificated Indian opium in Shanghai after the signature, but before the coning into effect of the new agreement.
(2.) To prevent by the adoption of all measures within its power the coming to Shanghai and Hong Kong of uncertificated opium from date of signature of agreement.
(3.) In addition to the annual reduction of 5,100 chests already agreed upon, to reduce further the import for the next four years of Indian opium by one-fourth each year by an amount equal to the amount of Indian opium now in bond when the stock is taken plus the amount of uncertificated opium unfortunately arriving in China before the agreement comes into effect.
(4.) To discourage the coming of uncertificated Indian opium by consenting to the levying of the new tariff on such opium arriving after the date of signature of the new agreement.
April 11, 1911.
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Enclosure 2 in No. 1.
Counter-Memorandum by Sir J. Jordan.~(Communicated to Dr. Yen April 12, 1911.)
Form in which Chinese Proposal might be submitted to His Majesty's Government.
(Rough Draft.)
ON the date of the signature of the agreement a list shall be taken by the commissioner of customs acting in concert with the colonial and consular officials of all uncertificated opium in bond at the treaty ports and of all uncertificated opium in stock in Hong Kong which is bona fide intended for the Chinese market, and all such opium shall be marked with labels which shall ensure it the same treaty rights and privileges in China as certificated opium.
Uncertificated opium shall for a period of two months from the date of signature of the agreement be imported into the ports of Canton and Shanghai only, and at the expiration of this period all treaty ports shall be closed to uncertificated opium provided the Chinese Government has obtained the consent of the other treaty Powers. The Imperial Maritime Customs shall keep returns of all uncertificated opium imported at Shanghai and Canton during this period of two months, and such opium shall pay the new rate of import duty, and shall not be re-exported in boud to other treaty ports. In addition to the annual reduction of 5,100 chests already agreed upon, the British Government agree to further reduce the import of Indian opium during each of the years 1912, 1913, 1914, and 1915 by an amount equal to one-fourth of the total ascertained amount of the uncertificated opium in bond on the date of signature plus the amount of uncertificated opium imported during the ensuing two months and minus the 5,000 chests representing the shortage on the import for 1910.
(Rough Draft.)
Indian Government's Proposal.
The consent of the other treaty Powers having been obtained, all treaty ports shall be closed to the import of uncertificated opium on the 1st July, 1911. Notice shall be given to British merchants to move into treaty ports before the 1st July all opium Bow in Hong Kong which is bond fide intended for the Chinese market. On the 1st July, 1911, a list shall be taken of all uncertificated opium in treaty ports, and all such opium shall be guaranteed the same privileges as certificated opium.
In consideration of this guarantee the Indian Government consent to reduce the export of certificated opium in 1912, 1913, 1914, and 1915 by the amount thus ascertained less the 5,000 chests representing the shortage of 1910.
The increased rate of import duty shall be enforced at any time after the date of the signature of the agreement provided the existing restrictions at Canton and elsewhere are withdrawn concurrently.
Enclosure 3 in No. 1.
Draft of Opium Agreement, 1911.
UNDER the arrangement concluded between His Majesty's Government and the Chinese Government three years ago, His Majesty's Government undertook that, if during the period of three years from the 1st January, 1908, the Chinese Government should duly carry out the arrangement on their part for reducing the production and consumption of opium in China, they would continue in the same proportion of 10 per cent. the annual diminution of the export of opium from India until the completion of the full period of ten years in 1917.
His Majesty's Government, recognising the sincerity of the Chinese Government and their pronounced success in diminishing the production of opium in China during the past three years, are prepared to continue the arrangement of 1907 for the unexpired period of seven years on the following conditions:-
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