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Inclosure 3 in No.
Mr. Durand to Mr. O'Conor.
Simla, September 11, 1885.
I AM directed to address you on the subject of the duties imposed by the Government of China on opium.
2. Mr. J. J. J. Keswick, of the firm of Jardine, Skinner, and Co., Calcutta, has recently addressed a letter to the Government of India, making certain suggestions connected with the collection of the Chinese duty and tax on opium. A copy is annexed.
Mr. Keswick reports the substance of certain conversations between his brother in China and certain high Chinese officials.
3. The difficulty which the Chinese have always experienced in preventing smuggling, and in securing the payment of the duty and tax on opium imported from India, is stated, and the belief is expressed that the difficulty will not disappear when the Convention recently concluded between the British and Chinese Governments comes into operation. To secure a fairly certain collection of the Chinese opium revenue, it is considered necessary to obtain the control of the opium exported from India until the duty and tax are collected; and it is held that this could only be obtained by agreement with the Government of India.
4. The basis of an agreement is suggested on the following lines: All opium to be exported from India in steamers under the Chinese flag; the bills of lading to provide for the payment of the duty and tax fixed under the Convention; the opium to be stored in bond at Hong Kong and the Treaty ports, and the duties to be payable on the opium being removed from bond for consumption; the Chinese Government to undertake that the opium should be absolutely free from all further duty or tax, and, if this condition is not observed by the Chinese, the Indian Government to be at once released from their part of the agreement; special provision to be made for the treatment of opium intended for consumption in Penang, Singapore, and Hong Kong.
If the Government of India were inclined to accept some such agreement, it is stated that China would send a Special Commissioner to India, with power to come to an understanding.
5. Mr. Keswick asks to be informed whether there is any likelihood of such an agreement being favourably viewed by the Government of India.
6. The Chinese tax will, under the new Convention, be fixed at so high a rate that the Chinese Government apparently fears that even the arrangements under the Convention for the collection of the tax by the Foreign Customs will not suffice to prevent smuggling. That Government accordingly desires to obtain control of opium exported from India before it leaves India.
7. The Government of India is under no obligation to assist China in obtaining what she desires, and, in any case, would make concessions in the desired direction only on condition of receiving at least equal concessions from China in respect of the opium trade.
8. The proposal that opium should be exported from India only under the Chinese flag is one which the Government of India could not accept. But it might, perhaps, be possible to devise a system under which the Government of India could collect the Chinese duty and tax, and hand the collections over to the Chinese Government. Under such a system smuggling would be so completely prevented that the Chinese Government could afford to make large concessions in return. If arrangements could be made whereby the present Indian revenue from opium were secured, and the possibility of China hereafter obtaining, through the agency of the Indian Government, a larger share than at present of the revenue derived from opium entirely obviated, the Government of India might be disposed to consider a proposal to introduce such a system.
9. There are, however, on the other hand, objections to the Government of India taking any share in the collection of the Chinese duties on opium exported from India to China, or taking measures to foster the growth, not of the Indian opium revenue only, but also of the Chinese; and the adoption of such a course might raise considerable difficulties for this Government. It is doubtful whether the Government of India should not restrict itself to the growth and sale of opium in India, and leave all measures relating to opium after it leaves India to private trade and the Chinese Government.
The desirability of the course which it is proposed to adopt will, in all probability, largely depend on the manner in which the new Convention can be worked, and until that has been ascertained it would seem premature to open the desired negotiations.
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10. A copy of the reply which has been sent to Mr. Keswick is annexed.
11. The Government of India will be much obliged if you will examine the proposals suggested by Mr. Keswick, and the considerations embodied in this letter, both with reference to the practicability and expediency of working an agreement on the basis suggested, and with reference to the dispatch of a special Agent to India to communicate confidentially with this Government. Should you agree to the dispatch of an Agent, the Government of India would wish to be favoured with a full expression of your views on the subject, and with all other necessary information.
(Confidential.)
Inclosure 4 in No.
Mr. Finlay to Mr. J. Keswick.
Simla, August 29, 1885.
I AM directed to acknowledge receipt of your letter of the 6th August to Mr. Barbour, suggesting the desirability of entering into an agreement with China for the more certain collection of the Chinese duty and tax on opium, asking whether there is any likelihood of some agreement on the basis indicated in your letter being favourably viewed, and stating that China would be prepared to send a Special Commissioner with power to come to an understanding with the Government of India in the matter.
2. In reply, I am directed to state that, if the Chinese Government wish to send to India an informal Agent, the Government of India would be prepared to give every attention to anything he might have to urge, and to give him any information he might require, provided he came with the consent of Her Majesty's Minister, and that Her Majesty's Minister had full knowledge of the purpose for which he was sent, and of the instructions given him.
3. If it is proposed to send an informal Agent to India for the purpose mentioned, the Agent should therefore place himself in communication with the Minister (who will be advised from here as to the substance of the proposals under acknowledgment), and he should obtain the latter's consent before starting for India.
Inclosure 5 in No.
Mr. O'Conor to the Viceroy of India.
Peking, November 28, 1885.
WITH regard to the letter which the Secretary to the Government of India addressed to me, under date of the 11th September, respecting a proposal by Mr. J. J. J. Keswick, of the firm of Jardine, Skinner, and Co., with a view to facilitate, under the new Opium Article, the collection of the Chinese duty and tax on opium, I beg to inclose a copy of a letter which I have received from Mr. William Keswick on the same subject, and of the answer which I returned thereto.
I have carefully considered the scheme drawn up by Mr. Keswick in regard to its probable effect upon the sale and consumption of Indian opium in China, but as I am confidentially informed that the Chinese Government have submitted a counter-scheme to Her Majesty's Government through the Chinese Minister in London, a perusal of which left me under the impression that, with certain alterations, it would perhaps meet with the approval of the Government of India, I think it would be premature to consider at the present moment Mr. Keswick's suggestion with a view to their practical adoption.
I have not been furnished with a copy of the proposals of the Chinese Government, but I have no doubt they will at once be submitted to the India Office, and referred to your Excellency.
If they are rejected by Her Majesty's Government, Mr. Keswick's scheme might then be taken up, and with this view I will supply your Excellency with a Memorandum thereon, drawn up by Mr. Hillier, Chinese Secretary to Her Majesty's Legation, whose long residence in Peking and intimate acquaintance with the opium question entitle him to speak with confidence.
Even if the Chinese proposals are accepted, it would be very necessary to supplement them by certain restrictions in the class of vessels authorized to carry opium from India to China.
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4
Inclosure 3 in No.
·
Mr. Durand to Mr. O'Conor.
Simla, September 11, 1885. I AM directed to address you on the subject of the duties imposed by the Government of China on opium.
2. Mr. J. J. J. Keswick, of the firm of Jardine, Skinner, and Co., Calcutta, has recently addressed a letter to the Government of India, making certain suggestions con- nected with the collection of the Chinese duty and tax on opium. A copy is annexed.
Mr. Keswick reports the substance of certain conversations between his brother in China and certain high Chinese officials.
3. The difficulty which the Chinese have always experienced in preventing smuggling, and in securing the payment of the duty and tax on opium imported from India, is stated, and the belief is expressed that the difficulty will not disappear when the Convention recently concluded between the British and Chinese Governments comes into operation. To secure a fairly certain collection of the Chinese opium revenue, it is considered neces- sary to obtain the control of the opium exported from India until the duty and tax are collected; and it is held that this could only be obtained by agreement with the Govern ment of India.
4. The basis of an agreement is suggested on the following lines:All opium to be exported from India in steamers under the Chinese flag; the bills of lading to provide for the payment of the duty and tax fixed under the Convention; the opium to be stored in bond at Hong Kong and the Treaty ports, and the duties to be payable on the opium being removed from bond for consumption; the Chinese Government to undertake that the opium should be absolutely free from all further duty or tax, and, if this condition is not observed by the Chinese, the Indian Government to be at once released from their part of the agreement; special provision to be made for the treatment of opium intended for consumption in Penang, Singapore, and Hong Kong.
If the Government of India were inclined to accept some such agreement, it is stated that China would send a Special Commissioner to India, with power to come to an under- standing.
5. Mr. Keswick asks to be informed whether there is any likelihood of such an agreement being favourably viewed by the Government of India.
6. The Chinese tax will, under the new Convention, be fixed at so high a rate that the Chinese Government apparently fears that even the arrangements under the Conven- tion for the collection of the tax by the Foreign Customs will not suffice to prevent smuggling. That Government accordingly desires to obtain control of opium exported from India before it leaves India.
7. The Government of India is under no obligation to assist China in obtaining what she desires, and, in any case, would make concessions in the desired direction only on condition of receiving at least equal concessions from China in respect of the opium trade.
8. The proposal that opium should be exported from India only under the Chinese flag is one which the Government of India could not accept. But it might, perhaps, be possible to devise a system under which the Government of India could collect the Chinese Under such a duty and tax, and hand the collections over to the Chinese Government. system smuggling would be so completely prevented that the Chinese Government could afford to make large concessions in return. If arrangements could be made whereby the present Indian revenue from opium were secured, and the possibility of China hereafter obtaining, through the agency of the Indian Government, a larger share than at present of the revenue derived from opium entirely obviated, the Government of India might be disposed to consider a proposal to introduce such a system.
9. There are, however, on the other hand, objections to the Government of India taking any share in the collection of the Chinese duties on opium exported from India to China, or taking measures to foster the growth, not of the Indian opium revenue only, but also of the Chinese; and the adoption of such a course might raise considerable difficulties for this Government. It is doubtful whether the Government of India should not restrict itself to the growth and sale of opium in India, and leave all measures relating to opium after it leaves India to private trade and the Chinese Government.
The desirability of the course which it is proposed to adopt will, in all probability, largely depend on the manner in which the new Convention can be worked, and until that has been ascertained it would seem premature to open the desired negotiations.
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330
10. A copy of the reply which has been sent to Mr. Keswick is annexed. 11. The Government of India will be much obliged if you will examine the proposals suggested by Mr. Keswick, and the considerations embodied in this letter, both with reference to the practicability and expediency of working an agreement on the basis suggested, and with reference to the dispatch of a special Agent to India to communicate confidentially with this Government. Should you agree to the dispatch of an Agent, the Government of India would wish to be favoured with a full expression of your views on the subject, and with all other necessary information.
(Confidential.)
Inclosure 4 in No.
Mr. Finlay to Mr. J. Keswick.
Simla, August 29, 1885. I AM directed to acknowledge receipt of your letter of the 6th August to Mr. Barbour, suggesting the desirability of entering into an agreement with China for the more certain collection of the Chinese duty and tax on opium, asking whether there is any likelihood of some agreement on the basis indicated in your letter being favourably viewed, and stating that China would be prepared to send a Special Commissioner with power to come to an understanding with the Government of India in the matter.
2. In reply, I am directed to state that, if the Chinese Government wish to send to India an informal Agent, the Government of India would be prepared to give every attention to anything he might have to urge, aud to give him any information he might require, provided he came with the consent of Her Majesty's Minister, and that Her Majesty's Minister had full knowledge of the purpose for which he was sent, and of the instructions given him.
3. If it is proposed to send an informal Agent to India for the purpose mentioned, the Agent should therefore place himself in communication with the Minister (who will be advised from here as to the substance of the proposals under acknowledgment), and he should obtain the latter's consent before starting for India.
Inclosure 5 in No.
•
Mr. O'Conor to the Viceroy of India.
Peking, November 28, 1885, WITH regard to the letter which the Secretary to the Government of India addressed to me, under date of the 11th September, respecting a proposal by Mr. J. J. J. Keswick, of the firm of Jardine, Skinner, and Co., with a view to facilitate, under the new Opium Article, the collection of the Chinese duty and tax on opium, I beg to inclose a copy of a letter which I have received from Mr. William Keswick on the same subject, and of the answer which I returned thereto.
I have carefully considered the scheme drawn up by Mr. Keswick in regard to its probable effect upon the sale and consumption of Indian opium in China, but as I am confidentially informed that the Chinese Government have submitted a counter-scheme to Her Majesty's Government through the Chinese Minister in London, a perusal of which left me under the impression that, with certain alterations, it would perhaps meet with the approval of the Government of India, I think it would be premature to consider at the present moment Mr. Keswick's suggestion with a view to their practical adoption.
I have not been furnished with a copy of the proposals of the Chinese Government, but I have no doubt they will at once be submitted to the India Office, and referred to your Excellency.
If they are rejected by Her Majesty's Government, Mr. Keswick's scheme might then be taken up, and with this view I will supply your Excellency with a Memorandum thereon, drawn up by Mr. Hillier, Chinese Secretary to Her Majesty's Legation, whose long residence in Peking and intimate acquaintance with the opium question entitle him to speak with confidence.
Even if the Chinese proposals are accepted, it would be very necessary to supplement them by certain restrictions in the class of vessels authorized to carry opium from India to China.
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