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this Colony to give effect to Article II and an additional Article draft of which with copy of both articles referred to is enclosed. I have already addressed both His Majesty's Minister at Peking and Mr. A. H. Harris, who is about to come here to take the place of Mr. Lowder informal letters copies of which are enclosed, and I trust that this action will meet with your approval.
4.
It is possible that this negotiation may in- -volve so much delay that it will not be possible to enact the legislation for dealing as proposed with salt during the current year. In such case I would ask your permission to defer the legis- -lation until the negotiation is completed.
This may involve a loss of prospective revenue
at the rate of $200,000 during the current year and next year.
But this would be more than counterbalanced by increase in revenue from opium due to increase in population owing
to the disturbed condition in China there are said to be 70,000
refugees from the Canton Province here at the present time and
by the prospective revenue from tobacco. The close examination of
the latter subject which has now been made shows that probably not
less than $400,000 per annum will be obtained from this source instead of $150,000 per annum estimated in paragraph 8 of my Confidential Despatch of the 26th. of January,
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The high rate of exchange prevailing this year
will also materially increase the nett revenue of the Colony.
5.
I may mention here that I raised the price of opium on the 20th. April to 812 per tael and I hope the taxing of
tobacco will be working on the 1st. of July. I might impose it a
month earlier were it not for the fact that I have been obliged to
grant Mr. R. 0. Hutchison short leave of absence as he was suffering
from the strain of overwork due to the war.
6.
I desire also to take this opportunity to ask your section to add to the Customs Agreement a sub-clause (g) as
per draft enclosed to Article XIII.
Under