CO129-321 - Public Offices & Others - 1903 — Page 181

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Mr. Conger has doubtless seen your Highness on the subject in the meanwhile, and, in addressing the present note to your Highness, desire only to comply with the instructions I have received from my Government, which are, to inform the Chinese Government that if these conditions are not carried out they must insist on the original provisions of the Tien-tsin Treaty being strictly observed, and that they will not be content to pass over any breaches of this rule in future.

I avail, &c.

(Signed)

Inclosure 3 in No. 2.

WALTER TOWNLEY.

Circular communicated by Doyen of Diplomatic Body to the Foreign Representatives in China.

United States Legation, Peking, March 21, 1903. THE Dean has the honour to inform his honourable colleagues that, in accordance with their suggestions made at the meeting of the Diplomatic Corps on the 17th instant, he yesterday called at the Wai.wu Pu, and told the Ministers that, notwith- standing their instructions, the Taotai at Shanghae was still selling permits to export

rice.

The Ministers agreed with the Diplomatic Corps that if there was to be a prohibi- tion, it ought to be, and should be, made a real one; and they informed him that, in addition to their despatch to the Taotai, they had, on the 19th instant, telegraphed him that on no account must any more special permits be issued.

E. H. CONGER.

(No. 9.) My Lord,

No. 3.

(Signed)

Consul-General Scott to the Marquess of Lansdowne.(Received May 9.)

Canton, April 8, 1903. REFERRING to my despatch No. 86 of the 22nd November last, covering my communication to His Majesty's Legation of the same date, I have now the honour to inclose copy

of my despatch No. 11 of the 3rd instant to His Majesty's Chargé d'Affaires at Peking, reporting a renewal of the attempt to levy the additional tax of 115'20 taels per picul on opium."

I beg to add that, as a result of a long interview with the Viceroy on the subject, his Excellency agreed to refer the whole question to Peking for discussion with His Majesty's Chargé d'Affaires.

I have, &c.

(Signed)

JAMES SCOTT.

in view of the Mackay Treaty, for loyal adherence on their part to the Opium Conven- tion of 1885.

I now, therefore, regret to have to report that for some time past arrangements and negotiations have been in progress between the old Syndicate, under the new name of Hêng Chi, and the Provincial Treasurer to enforce the original levy of the Kuang Hing Kung Sen, amounting to 115-20 taels per picul. I beg to inclose copy and translation of the "Provisional Regulations," the "Revised Regulations," and the Proclamation to be issued sanctioning the commencement of the tax.

These documents reached me on the 30th ultimo, and finding that the Proclamation had not yet been posted, and that the authorities were thus not definitely com- mitted to approval of the tax, I called on the Viceroy next day, with the result that, after a long discusson, his Excellency agreed to postpone matters pending communica. tion with yourself and the Wai-wu Pu. At this interview, I appealed to the Viceroy to prove his assurances of friendship by acts and not by mere words; and pointed out to him that the British authorities were ever ready to assist China, and had evidenced this by their recent action in connection with the China New Year plot against the Canton officials. On the other hand, I added, he (the Viceroy) was showing himself unfriendly by again attempting to impose additional duties on opium, already strongly objected to by His Majesty's Government. In answer to a question by the Viceroy, why opium once in Chinese hands could not be taxed to any extent the Chinese authorities chose, I replied that the one idea of the Opium Convention was to accord to the Chinese Government the right to increase the taxation on opium to the extent allowed thereunder on the understanding that, except under conditions such as do not now exist, the 30 taels duty and the 80 taels li-kin should not be exceeded, and that his present action, therefore, was an absolute infringement of that Convention.

With regard to the Regulations under which it is proposed to collect the new tax, I would point out that although the word "licence" is used, it is merely a euphemism, and is actually a li-kin tax imposed on the raw opium at the place of import, the licensees being bound to pay the tax on raw opium as they receive it. These licences also, the number of which is limited to suit the individual interests of the Hêng Chi Syndicate, will, as they are intended to do, create a monopoly for the farm, and will eventually bring things to such a pass that no one but the farmer and his associates will be in a position to import and boil. Such a monopoly appears to me to be entirely opposed to the spirit and intention of Article V of the Treaty of Nanking of 1842.

As regards the original prepared opium licence referred to in connection with this new tax, I have the honour to refer you to Inclosure 2 in my despatch No. 37 of the 24th April, 1902. I would also add that I informed the Viceroy at my recent interview with him that even this levy was not sanctioned by the Convention of 1885.

The excuse given by the Provincial Government for the necessity of this additional opium tax, namely, Kuang-tung's contribution to the indemnity, is not, in my opinion, one deserving of any consideration. Increased taxes have already been placed upon land, houses, and every article of trade; and I am satisfied that if a reasonable proportion of the additional sums collected were devoted to indemnity purposes, there would be no need for the raising of this further 1,000,000 taels,

I have, &c.

(Signed)

JAMES SCOTT.

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Inclosure 1 in No. 3.

Consul-General Scott to Mr. Townley.

(No. 11.) Sir,

Canton, April 3, 1903. I HAVE the honour to refer you to my despatch No. 85 of the 22nd November last, reporting the withdrawal of the additional tax on foreign opium. In the Proclama- tion by the provincial authorities of the 16th November, therein inclosed, notifying this abolition, it will be observed that the Viceroy had not entirely abandoned the idea of levying a further tax on foreign opium. His Excellency then ordered that a satis- factory set of Regulations, similar to those governing the prepared opium licences hitherto in operation should be drawn up and enforced. I was in hopes, however, that the provincial authorities would be induced to stay their hand from any new imposts on foreign opium, especially as I had enjoined upon them to remember the heavy taxation to which opium was already subjected, and the necessity, in their own interests and

Inclosure 2 in No. 3.

Provisional Regulations for the Levy of Additional Tax on Opium.

THE following eight Provisional Regulations have been drawn up, and are herewith submitted for approval:

1. The style of the farm entrusted with the prepared opium licences for the entire Province of Kuang-tung shall be "Hêng Chi." Those merchants who were interested in the Kuang Hing Kung Ssu, and who desire to become shareholders in the Hêng Chi farm, shall transfer the shares they had in the former to the latter farm. Those who do not wish to take shares in the Hêng Chi farm shall receive back by arrangement the amounts originally invested by them in the Kuang Hing Kung Ssu. The Government shall be in no way concerned with them.

2. The farm undertakes to pay 1,000,000 dollars per annum for the privilege of managing the prepared opium licences, payment to begin from the date of the publication