3
585
2
the only reliable statistics available for working out a solution of this gigantic problem.
Articles 6 and 7 are perhaps the parts of the agreement which will require most careful attention in the future.
The Chinese Government undertake to levy a uniform tax on all opium grown in the Chinese Empire, and His Majesty's Government agree to increase the consolidated import duty on Indian opium to 350 taels a chest as soon as the equivalent excise tax is enforced on native opium. This latter tax has been fixed by mutual agreement at 230 taels a picul, and both duties are to become effective from the date of signature of the agreement.
In return for this large increase in the import duty China undertakes to withdraw at once all the restrictions placed by the provincial authorities on the wholesale trade in Indian opium and also all taxation on the wholesale trade other than the consolidated duty, and that no such restrictions or taxation will again be imposed so long as the additional article to the Chefoo Agreement remains in force.
Indian raw opium which has paid the consolidated duty is to be exempt from any further taxation whatsoever in the port of import,
His Majesty's Government are at liberty to suspend or terminate the agreement at any time should the conditions in the above two clauses not be duly observed.
It is sincerely to be hoped that no occasion will arise for exercising this discretion, and that the provincial authorities at Canton and elsewhere will be required to pay more respect to this engagement than they have done to treaty stipulations in the past. The increased duty represents a fair and liberal assessment on the present value of opium, and there can no longer be any excuse for provincial exactions.
The Chinese Government, in their opium policy, have amply demonstrated their ability to impose their will on the provinces, and we can, I feel sure, look forward with confidence to their issuing such instructions as will prevent any recurrence of the vexatious questions which have occupied so much of the time and attention of this legation during the past year. I have impressed this view strongly upon the Ministers of the Wai-wu Pu, and have felt justified in saying that personally I should prefer to sign no agreement rather than court a repetition of past experience.
The Chinese Government are left free as before to regulate the retail trade in the drug and to take such steps as they deem proper for the suppression of smoking, and with good-will and reasonableness on both sides, there should be no insurmountable difficulty in carrying out these provisions without interfering unnecessarily with the wholesale trade.
In conclusion, I have the honour to record my conviction that the agreement is one which concedes to China every facility required for the completion of her programme of opium suppression. In this assertion I am supported not only by the opinion of many leading Chinese officials, but also by the statement of the Chinese signatory, his Excellency Tsou Chia-lai, who asked me to convey to His Majesty's Government the warm appreciation of the Chinese Government for the cordial co-operation they had received in reaching such a satisfactory solution of this difficult problem.
I have the honour to enclose copies of two notes which were exchanged at the time of signature.
My note to the Wai-wu Pu states that certificated opium removed from bond at the treaty ports or imported into China after the signature of the agreement will be liable to the new rate of duty.
The Wai-wu Pu's note to me fixes the levy upon native opium at 230 taels. It is understood that this will be enforced by an Imperial rescript,
a copy of which will be furnished to me in due course.
I have, &c.
Enclosure 1 in No. 1.
Agreement relating to Opium, 1911.
J. N. JORDAN.
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 day of 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 on the following conditions:--
ARTICLE 1.
From the 1st day of 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 annex appended hereto until total extinction in 1917.
ARTICLE 2.
The Chinese Government have adopted a most rigorous policy for prohibiting the production, the transport, and the smoking of native opium, and His Majesty's Govern- ment have expressed their agreement therewith and willingness to give every assistance. With a view to 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 of the complete absence of production of native opium in China.
ARTICLE 3.
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 4.
During the period of this agreement it shall be permissible for His Majesty's Government to obtain continuous evidence of the diminution of cultivation 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 the above period one or more British officials shall be given facilities for reporting on the taxation and trade restrictious on opium away from the treaty ports.
ARTICLE 5.
By the arrangement of 1907 His Majesty's Government agreed to the dispatch 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 agree that the official so dispatched may be present at the packing of the opium on the same condition.
ARTICLE 6.
The Chinese Government undertake to levy a uniform tax on all opium grown in the Chinese Empire. His Majesty's Government consent to increase the present consolidated import duty on Indian opium to 350 tacls per chest of 100 catties, such increase to take effect as soon as the Chinese Government levy an equivalent excise tax on all native opium.
ARTICLE 7.
On confirmation of this agreement, and beginning with the collection of the new rate of consolidated 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,
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