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ARTICLE 1.
From the 1st January, 1911, China shall diminish annually for seven years the production of opium in China in the same proportion as the annual export from India is diminished, in accordance with the terms of this agreement and of the memorandum annexed hereto, until total extinction in 1917.
[Wording subject to alteration.-J. N, J.]
ARTICLE 2.
During this period of seven years it shall be permissible for His Majesty's Govern- ment to obtain continuous evidence of this diminution by local enquiries and investigation conducted by one or more British officials, accompanied, if the Chinese Government so desire, by a Chinese official. Their decision as to the extent of cultivation shall be accepted by both parties to this agreement.
During this period of seven years one or more British officials shall be given facilities for reporting on the taxation and trade restrictions on opium away from the treaty ports.
ARTICLE 3.
On confirmation of this agreement, and beginning with the collection of the new rate of import duty, China will at once cause to be withdrawn all restrictions placed by the provincial authorities on the wholesale trade in Indian opium, such as those recently imposed at Canton and elsewhere, and also all taxation on the wholesale trade other than the consolidated import duty, and no such restrictions or taxation shall be again imposed so long as the additional article to the Chefoo agreement remains as at present
in force.
It is also understood that opium having paid the consolidated import duty shall be exempt from any further taxation whatsoever in the port of import.
[Inclusion of this clause uncertain.---J. N. J.]
The foregoing clauses shall not derogate in any manner from the force of the laws already published or hereafter to be published by the Imperial Chinese Government, to regulate and suppress the smoking of opium and the retail trade in the drug in general.
ARTICLE 4.
By the arrangement of 1907, His Majesty's Government agreed to the despatch by China of an official to India, to watch the opium sales, on condition that such official would have no power of interference. His Majesty's Government further agreed that the official so dispatched may be present at the packing of the opium on the same condition.
ARTICLE 5.
With a view to assisting China in the suppression of opium, His Majesty's Govern- ment undertake that from the year 1911 the Government of India will issue an export permit, with a consecutive number, for each chest of Indian opium declared for shipment to or for consumption in China.
During the year 1911 the number of permits so issued shall not exceed 30,600, and shall be progressively reduced annually by 5,100 during the remaining six years ending 1917.
A copy of each permit so issued shall, before shipment of opium declared for shipment to or for consumption in China, be handed to the Chinese official for transmission to his Government or to the customs authorities in China.
His Majesty's Government undertake that each chest opium for which such permit has been granted shall be sealed by an official deputed by the Indian Government in the presence of the Chinese official if so requested.
The Chinese Government undertake that chests of opium so sealed and accompanied by such permits may be imported into any treaty port of China without let or hindrance if such seals remain unbroken.
ARTICLE 6.
The Chinese Government has, as regards native opium, adopted a most rigorous policy for prohibiting the production, the transport, and the smoking of opium, and His Majesty's Government have expressed their agreement therewith and willingness to give every assistance. With the view of facilitating the continuance of this work, His Majesty's Government agree that the export of opium from India to China shall cease in less than seven years if clear proof is given to the satisfaction of the British Minister at Peking of the complete absence of production of native opium in China.
ARTICLE 7.
His Majesty's Government further agree that Indian opium shall not be conveyed into any province in China which can establish by clear evidence that it has effectively suppressed the cultivation and import of native opium.
It is understood, however, that the closing of the ports of Canton and Shanghai to the import of Indian opium shall not take effect except as the final step on the part of the Chinese Government for the completion of the above measure.
ARTICLE 8.
The Chinese Government undertake to levy a uniform tax on all opium grown in the Chinese Empire. His Majesty's Government consent to an increase in the present consolidated import duty on Indian opium up to an amount of 350 taels per chest, such increase to take effect as soon as the Chinese Government levy an equivalent excise tax on all native opium.
ARTICLE 9.
On a breach of any of the conditions contained in this arrangement His Majesty's Government shall be at liberty to suspend or terminate the agreement at any time.
[Wording subject to alteration.-J. N. J.]
ARTICLE 10.
Should it appear on subsequent experience desirable at any time during the unexpired period of seven years to modify this agreement or any part thereof, it may be revised by mutual consent of the two high contracting parties.
April 24, 1911.
Enclosure 4 in No. 1.
Memorandum dealing with Opium in Bond in Chinese Treaty Ports and in Stock in Hong Kong.
[Draft agreed upon April 24, 1911.]
ON the date of the signature of the agreement a list shall be taken by the commissioners of customs, acting in concert with the colonial and consular officials, of all uncertificated Indian opium in bond at the treaty ports and of all uncertificated apium in stock in Hong Kong which is bonâ fide intended for the China market, and all such opium shall be marked with labels, and, on payment of 110 taels consolidated import duty, shall be entitled to the same treaty rights and privileges in China as certificated opium.
Opium so marked and in stock in Hong Kong must be exported to a Chinese port within seven days of signature of agreement.
All other uncertificated Indian opium shall, for a period of two months from the date of signature of the agreement, he landed at 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 a return of all uncertificated fudian opium landed at Shanghai and Canton during this period of two months other than
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