CO129-321 - Public Offices & Others - 1903 — Page 299

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consumption, if any tax, &c., be imposed, it shall not exceed any tax or contribution paid by native opium."

Accordingly, I would point out that as this tax on prepared opium in Kiangsi is imposed only after the breaking open of the packages upon their entering the interior, provided that the amount levied on foreign and native opium is relatively the same, the tax is not an additional one, nor contrary to Treaty Rules.

I have telegraphed to the Governor of Kiangsi requesting him to instruct his subordinates to act according to Treaty Regulations.

(Translation.) Sir,

I have, &c.

(Seal of Provincial Treasurer), Acting for Viceroy, absent in Kuangsi.

Inclosure 3 in No. 3.

Consul-General Scott to Viceroy.

Canton, July 11, 1903.

I HAVE the honour to acknowledge the receipt of your Excellency's despatch of the 1st instant, informing me that the Governor of Kiangsi had telegraphed that the levy of "prepared opium duty" was recognized in every province; that after the opium had passed into the interior, and the packages had been opened, the levy was made on Chinese traders, and was in no way contrary to the Convention. name "prepared opium tax," the Governor declared, was no cunning advice to cover the levy; for the coast and river provinces were all inaugurating this tax, and the Province of Kiangsi was now merely following their example-there was no extra levy whatever, and the Governor saw no reason to discontinue the impost.

The

In communicating to me the above telegram from the Governor of Kiangsi, your Excellency, on your own part, made reference to the London Convention of 1885, and argued that if, value for value, foreign and native opium is assessed at the same rate, no extra impost is thus levied, and consequently there is no infringement of the Convention.

In reply, I beg to remind your Excellency that at Kan-chou there are no regular opium-boiling establishments; and I feel myself justified, therefore, in claiming that the tax is being levied under a name which is both a euphemism and subterfuge. The fact is, directly foreign opium reaches Kan-chou it is subjected to this new impost without discrimination just as if it were any other commodity entering the province.

As regards the point raised by the Governor of Kiangsi in his telegram, viz., that the tax is collected from Chinese merchants, and is in no way contrary to Convention, I must point out that while the levy is paid- by Chinese, the goods in question are of British origin. Further, the VIIth Article of the London Convention authorizes the British Government to terminate the Convention at any time should the transit certificate be found not to confer on the opium complete exemption from all taxation whatsoever whilst being carried from the port of entry to the place of consumption in the interior. In such case, should your authorities proceed to levy extra imposts on foreign opium, with the result that the British Government denounces the Convention, your Government will then be reduced to the dues and conditions allowed by the Tien-tsin Treaty-a position involving grave issues for China,

Under the circumstances, I am reporting the whole matter to His Majesty's Minister in Peking for consideration by His Majesty's Government, in conjunction with your high authorities. Meantime, I have the honour to request your Excellency to communicate by telegraph with the Governor of Kiangsi, and desire him to refrain from proceeding with this tax pending the joint decision of our respective Governments.

I have, &c.

idential.

presents

to Trade +31,82

The Under-Secretary of State for Foreign Affairs

his compliments to the Under-Secretary of State,

and is directed by the Secretary of State for Foreign Affairs

to transmit, to be laid before the Secretary of State for

the Colonies

further sections of confidential

correspondence, as marked in the margin.

Foreign Office,

September 23, 1902.

(Signed)

JAMES SCOTT.

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