CO129-205 - Public Offices - 1882 — Page 311

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Inclosure 3 in No. 76.

Sir T. Wude to the Prince of Kung.

Sir,

Peking, January 14, 1882. THE note which I had the honour to address to your Imperial Highness under yesterday's date regarding opium taxation, has taken longer to prepare than I anticipated. The text, nearly as it stands, was shown to the Grand Secretary Li at Tien-tsin, and his interpreters prepared a translation which his Excellency was so good as to communicate On my return here, however, I found it necessary to go once more through the papers affecting the opium question, and this and the reconstruction of the text in some places has occasioned a delay for which I feel it my duty to apologize.

to me.

Just as I was dispatching it to your Imperial Highness, I was informed of a report prevailing at Tien-tsin and Shanghae to the effect that the propositions laid before the throne by the Grand Secretary Tso last summer had been approved by the Chinese Government. This is, of course, a mere report, but I feel none the less bound to observe that, if it be true, I foresee considerable difficulties in the way of a settlement of this question.

(Translation.)

I have, &c.

(Signed)

THOMAS FRANCIS WADE.

Inclosure 4 in No. 76.

The Prince of Kung to Sir T. Wade.

January 25, 1882.

THE Prince of Kung makes a communication in reply to the British Minister. The Prince is in receipt of the British Minister's note of the 25th of the 11th moon of the 7th year of Kuang Su (14th January, 1882) to the effect that in dealing with the opium question, the adoption of Mr. Samuel's scheme of the monopoly proposed by the Cantonese Company or the scheme proposed by Ma Taotai, when he proceeded to India to inquire into the practicability of establishing a general Agency, would be exclusively the affair of the Governments of our two countries, but that as regarded the proposition of the Grand Secretary Li to levy a hi-kin of SO taels to be collected at the same time as the Tariff duty by the foreign Customs, or (as an alternative) to increase the present Tariff duty by 80 taels, leaving the li-kin to be collected as heretofore at the ports; the propositions which the British Minister would submit to his Government either to authorize a li-kin of 70 taels, or an increase of 20 taels to the Tariff, or the proposition lying outside all these, of the Grand Secretary Tso, to levy a total li-kin of 120 taels at the ports and in the interior, each of these would involve some modifications of the Treaties of other Governments; but that it was not likely if the Government of China were at once to remove the abuses affecting the taxation of imports and exports, that other Governments would offer any opposition to such arrangements as the British Government might accept with reference to opium. The British Minister now waited to be informed which of the propositions above enumerated was most in accord with the wishes of the Chinese Government, in order that he might submit it to his own.

The Tsung-li Yamên would observe that, of the arrangements above enumerated, that under which the li-kin and the Tariff duty are to be collected together is doubtless one that may be considered (may form) a basis of negotiation. There is, at the same tine, an immense difference between the sum of 70 taels, which the British Minister proposes should be added to the 30 taels Tariff duty, and the addition to the li-kin which the Chinese Government proposes to make. The proposition stated by the Grand Secretary Li, in conference with the British Minister, was that 80 taels li-kin should be levied, in addition to the 30 taels Tariff duty-a total sum, that is to say, of 110 taels; and this it is not found possible to reduce (or, "and this it is found cannot properly be reduced "). The estimate, therefore, action upon which is to be considered in order to a satisfactory conclusion is certainly that presented by the Grand Secretary 14.*

As regards taxation of import and export produce, the Representatives of the different Powers having addressed the Yamên communications on the subject, negotiations ensued between the Yamên and Herr von Brandt, Minister of Germany, and the British Minister. But this was before the opium question was taken into consideration. The negotiations (on the general trade) having now reached a certain point, there will be no difficulty in dealing with each (of the two parts) separately, and pursuing discussion deliberately to conclusions of common advantage. This is a matter apart, and not to be

* By the construction the difficulty of reducing it appears laid upon the Grand Secretary Li.

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The Yamên is most anxious to

connected in its treatment with the opium question. come to an understanding with the British Minister upon the latter subject, and to take action upon it as soon as possible; and what is really to be feared is this, that if fresh obstacles defer this solution for any great length of time, the Chinese Government may of itself raise the rate of li-kin to 150 taels, as originally proposed by the Grand Secretary Tso, or may devise some other measure, such as the establishment of a Guild or a general Committee. There is no telling.

Being in receipt of the British Minister's observations,† it is the duty of the Prince to reply.

Sir,

Inclosure in No. 76.

Sir T. Wade to the Prince of Kung.

Peking, January 28, 1882.

I HAVE the honour to acknowledge your Imperial Highness' note of the 25th instant.

The reasons which make opium taxation and taxation of other branches of foreign trade inseparable questions have been so fully set forth not only in my note of the 13th instant, but on several previous occasions, that I shall not occupy your Imperial Highness' time with a repetition of them.

The discussion of the opium question did not follow, as your Imperial Highness believes, it preceded the discussion of the other questions. It began, in fact, from the day I returned here in 1879, and has continued ever tince.

As to the threat, for so I must regard it, that the Government of China may be obliged to take the collection of opium li-kin into its own hands, I must observe that it At the has always had the collection in its own hands, and that it has it at this moment. single port of Shanghae, indeed, the li-kin Collectorate, at the instance of Herr von Brandt, was removed from within the settlement, but the Collectorate none the less exists on its very borders, and at every other port the li-kin Collectorates stand where they have been used to stand. It is because under these conditions a large amount of the opium revenue escapes the collector that the co-operation of Her Majesty's Government is needed.

Her Majesty's Government is willing to co-operate, but, as I have been careful to remind the high officials of the Chinese Government with whom I have been in com- munication on the subject, Her Majesty's Government will certainly reserve to itself the right of deciding to what extent it will accord its assistance, whether as regards collection of li-kin with the Tariff duty, or an increase of the Tariff, or by adoption of any other proposition.

(Translation.)

I have, &c. (Signed)

Inclosure 6 in No. 76.

THOMAS FRANCIS WADE.

The Prince of Kung to Sir T. Wade.

February 2, 1882.

THE Prince of Kung makes a communication in reply to the British Minister. The Prince is in receipt of the British Minister's note of the 28th ultimo on the subject of the duty and li-kin on foreign opium. The British Minister observes that the passage in the Prince's note, to the effect that China may possibly take upon herself to increase the rate of li-kin, or may, single handed, resort to some other scheme, is in the nature of a threat; that a large amount of the opium revenue escapes the Chinese collector; and that the British Government is quite willing to offer its assistance; but that the form in which such assistance is to be afforded, whether by a levy of li-kin and duty in one and the same payment, or by an increase of the regular Tariff duty, or by some other measure, rests wholly for the British Government to determine. Referring to the proposition for the simultaneous collection of duty and li-kin which the Prince's note had stated to be the preferable one, the British Minister remarks that he has already submitted it to the consideration of his Government by telegraphic despatch on the 18th January, as being the On receipt of a reply project which seemed most satisfactory to the Grand Secretary Li.

from his Government, the British Minister would write for the information of the Prince."

The Prince would observe, in reply, that the passage contained in his former note,

* Of itself, meaning without further consulting the British Government. This, though in appearance curt, is rendered with all due courtesy in Chinese.