APPENDIX.
Instructions to II. M. Mom Chow Prisdang, His Majesty's Envoy Extraordinary and Minister Plenipotentiary in Europe.
(Translation.)
VARIOUS causes, which it is unnecessary to mention, have induced His Majesty to defer the general revision of Treaties, but the Spirit question is so urgent that its settlement can be no longer delayed.
2. The State monopoly of the manufacture and sale of spirits made from rice has existed from time immemorial in Siam, and has never been abolished.
3. Its importance may be illustrated by two principal considerations:-
(1.) The great assistance it affords to the revenue of the kingdom;
(2) The control it enables the Government to exercise in regulating prices, thereby preventing
drunkenness, which inevitably follows, and is cause by cheap spirits.
4. The chief consumers are Chinese, who, though generally wealthy enough to pay the ordinary taxes, pay only a direct impost of 4 tecals in each year, whereas Siamese pay 18, or even more, direct in taxation every year.
5. When the Treaty with Great Britain was signed in 1855, the Siamese Plenipotentiaries unfor- tunately overlooked the importance of this trade, and did not specify spirit as contraband in rearranging the taxation. Subsequently the Government, when abolishing monopolies which interfered with ordinary trade, left the Spirit question in statu quo.
6. No spirit was, in fact, imported for many years, and the spirit farming was maintained as usual.
7. The subsequent Treaties with the United States and France, the Netherlands, Portugal, &c., contained a clause specially inserted, declaring contraband all articles which, at the date of those Treaties, were subject to special monopoly.
S. It follows, therefore, that, whereas the trade in spirits was the object of a special monopoly, there can be no doubt that by those Treaties His Majesty's Government has the right to maintain the farming of spirits in Siam.
But when the question arose, in consequence of the importation of cheap French brandy, the Government appeared to consider that the most-favoured-nation clause prevented their seizing those imported goods as contraband.
9. Desiring to prevent any recurrence of a question which might have led to unfriendly feeling, His Majesty's Government sent his Excellency Chao Phya Surawongse to explain matters to the French Government, and as a result a Convention was signed, placing restrictions on the sale of French spirits,
10. In the meantime, the natural course of trade had convinced the importers that European spirits of low quality could not be profitably imported to compete with native rice spirit, and the import ceased.
11. His Majesty's Government did not think it worth while to ask the formal consent of foreign Governments to what appeared an unnecessary precaution, and although Her Britannic Majesty's Government, through its Acting Consul, expressed in 1868 its readiness to enter into a Convention similar to that concluded by France, nothing was done in the matter.
12. An experiment of importing spirits from Hamburgh also failed and did not pay profits.
13. For many years past trade has been changing; it has passed out of the hands of Englishmen and other foreigners, and becomes year by year more entirely Chinese.
A few years ago they only owned one rice-mill on the Menam. Now many are so owned. China- men, not foreign subjects by birth, register themselves at European Consulates, and Consuls, not con- sidering that they are spoiling the trade of their own countrymen, protect the Chinese, who are thus enabled to defraud foreigners by their owa bankruptcy laws, and the Government by every possible means, for they are in the habit of doing things which Europeans are ashamed to do.
14. These Chinamen imported from Macao Hong Kong spirits similar to rice spirit made in Siam, and probably with Siamese rice, but as it paid no excise duty and only 3 per cent import duty, it could be sold in Siam very much cheaper than the native spirit sold at the high price fixed by the Govern-
ment.
15. His Majesty's Government tried the experiment of substituting an official in place of the farmer of the spirits, and of lowering the price of native spirits to compete with that imported by the Chinese.
The result was an alarming increase of drunkenness and crime.
16. The price charged for the Siamese spirit still left a profit to the importer, and consequently the importation continued.
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When the Government, on full consideration of the Treaties, came to the conclusion that the trade carried on under Portuguese, Dutch, and other flags was illegal, continual disputes arose with Consuls some of whom had made large profits by protecting Chinese spirit importers and retailers.
17. Thus, besides other evils of this iniquitous trade, we must reckon the temptation and corruption
of Consuls, bappily rare, but yet sufficiently frequent to become extremely inconvenient.
18. It is intolerable that Consuls, in defiance of law and Treaties which prescribe compliance with Siamese Regulations, should take upon themselves to issue licences for selling spirit by retail, not only in Bangkok, but the provinces.
19. Whatever trade rights may be conferred by Treaty, surely, as a matter of police regulation for the promotion of good order and general protection, His Majesty's Government ought to have full power to close every shop not licensed by itself for retail of spirits, and to control the trade.
20. Some nations are disposed to help in this matter, soine are opposed, but we are persuaded that it is not really the Home Government, but the individual Consuls and others, who are indisposed, being greatly influenced by personal motives.
21. Consuls are generally conscientious, but desire to support their clients without con. sideration of the nature of their cases; but the blame in such cases rests on their clients. Many cases are known to the Government; one flagrant instance may be quoted. A missionary receives 800 tecals n-year to prevent this trade amongst his converts, when he was bound to prevent it without any pay.
22. The continual irritation arising in our relations with these Consuls is one very strong reason
for His Majesty's Government's desire to procure an early settlement of this question.
23. You are desired to bring this matter under the notice of the Government, and under your powers as Minister Plenipotentiary to discuss and suitably arrange it by special Convention.
24. It has become year by year more important, for ships trading from China will be encouraged
to bring cargoes of spirits, and others will be put on the line. Thus, when His Majesty Government stops the trade by lowering the prices, great inconvenience will result.
Action must be taken in the interest of the ship-owners themselves before they have increased their resources and vessels on the strength of the present condition of things, for the trade must and shall be stopped.
25. You will be careful to impress on the Government the real nature of this issue.
26. It is a contraband trade, and flourishes only because it is so. It would cease directly His Majesty's Government permitted free trade in liquors.
dear.
27. Rice spirit can be made in Siam, where rice is cheap, more readily than in China, where it is.
Besides this, there is to be added to prime cost, packing, freight, intermediate charges, and 3 per cent, import duty, thus the only thing which makes its sale profitable is the Government tax, ie, the sam paid to His Majesty's Government by the farmer of spirits, which is in the interest of the kingdom.
28. Every measure that is sold takes the place of a measure of native spirit, and the Govern- ment loses the tax, while the Chinese importer makes a profit, roughly speaking, of the amount of the tax, less the extra price of manufacture, freight, &c., say one quarter of the amount of the Siamese spirit; all the other three-fourths are wasted in bringing to Siam an article which can be made cheaper there. And this merely to enable a few Chinese traders to put in their pockets a portion of the tax, for Europeans are not engaged in this trade.
29. Should our allies not assist us in this matter, it is hardly necessary to point out the effect of our reducing the price, as we shall be compelled to do.
The Siamese who are not inclined to spend their money in drink will be tempted by the reduced price, and those habituated will drink more than ever. Thus there will be increased consumption; and, as the price will exclude all competition, probably the revenue will be maintained, or perhaps increased, but the moral condition of the people will be seriously injured.
30. If answer be made, that foreigners do not ask us to reduce the price, and that if we do so the fault is our own, you can reply that, so long as there is any profit to be made out of it, Chinese impor tation will continue to increase until it has entirely substituted itself for ours.
We must therefore either compete by lowering the price or give up our spirit revenue altogether, or restrict a free sale of imported spirits.
31. But the great objection to this is that it would at once increase the number of spirit- drinkers, and we could never, by subsequent regulation, cure the taste for liquor encouraged among our people.
32. 1is Majesty's Government trust, therefore, that no foreign Government will force this course upon us, but on the contrary will listen in the most friendly manner to your representations, with all readiness to do justice and stop this great wickedness.
33. Under any circumstances, to allow a foreign article to be imported at less cost than the native manufacture seeing a strange proceeding which we cannot be expected to continue; all that can be asked is to allow spirits to be imported at the same duty as the excise on home-mado.
34. But this is extremely difficult, for the price paid by the farmers of spirits frequently varies, and the amount sold cannot be accurately ascertained.
35. The system of farms comes practically to the same thing as excise for the end in view. 36. In Saigon, Singapore, Hong Kong, Batavia, Moulmain, and every European Colony, the spirit
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