CO129-321 - Public Offices & Others - 1903 — Page 305

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Inclosure 2 in No. 1.

Proclamation issued by Ting, Provincial Treasurer; Wu, Provincial Judge; Chou, Acting Salt Commissioner: Yan, Acting Grain Tantai, Superintendents of the Coast Defence, and the Provincial Reorganization Board, and Financial Board of Kuangtung,

WHEREAS Wu K'uei P'u, of the Hong Chi Syndicate, has undertaken the farm of the "License Fee on prepared Opium" in Kuangtung, paying to the Govern- meut a yearly sum of 1,000,000 dollars, and levying 1 m. 2 c. on every tael weight of foreign and native prepared opium, calculated at six-tenths of the raw article: in the second moon of this year Regulations were drawn up, the deposit money was paid, and a Petition was made to our Boards, which we submitted to the Viceroy and the Governor, who approved it. On the 29th day of the 2nd moon Proclamations were issued, and on the 18th day of the 3rd moon the Syndicate reported that they had begun operations.

Now Wu K'uei P'u again petitions that, as he was about to begin operations, he found that, under the circumstances, the levy was rather heavy, and ought to be reduced, and he proposed to reduce it by one half, as had at first been decided-that is to say, that on every tael of foreign and native boiled opium would be 6 candareens, while the native opium, being a native product and consumed in China, should be liable to the tax whilst still raw, reckoning the proportion of boiled opium towards raw opium at such a rate as to make the opium, when raw, pay 6 candareens per tael. But, as the amount of the levy has been reduced, the sum paid to the Govern ment should not remain at its original figure, and the Syndicate undertakes to pay 600,000 dollars a-year in monthly instalments, and in a year, with an intercalary month the instalments would be proportionally increased, taking into the Syndicate Wu Yao P'êng as General Manager, who shall share in the responsibility to pay the amount guaranteed. The Syndicate requests us to grant their petition, and issue a Proclamation.

This province has to raise funds towards paying the indemnity, and the levy on prepared opium is one of the largest sources of revenue. Last year, when the Kuang Hsing Syndicate farmed the levy, we were ordered to abolish it, as there was some- thing in it which was contrary to Treaty. This farm of the license on boiled opium by the Hêng Chi Syndicate is a matter of a kind which we have had before in China, and concerns our internal Administration. As sanction has been given (by the higher authorities) to the enterprise, the Syndicate is at liberty to begin operations, and collect the money according to the Regulations. As regards the petition of the Syndicate to reduce the levy by one half, and also to reduce the sum paid to Govern- ment to 600,000 dollars, and to admit Wu Yao Pêng to join in the guarantee and become Manager, as it is for the purpose of combining together in the interests of the public service, we, as is right, grant it. But as to the period of thirty-eight years for which the farm was originally granted to the Syndicate, as the yearly sum to be paid to Government has been reduced, the Syndicate is now permitted to attempt to carry out the scheme for five years only, and, if successful, the levy shall be increased, and the sum to be paid to Government increased to its former figure of 1,000,000 dollars, when the Syndicate may be granted the farm for thirty-eight years, and thus carry out the original Agreement, and also provide for the indemnity.

Another set of Proclamations has been issued, and the Syndicate has been ordered to fix the date of beginning the levy, and to pay the monthly instalments at the proper time, in order to meet the indemnity.

We have reported the whole matter to the Viceroy and Governor, and this Proclamation is issued for the information of prepared opium shops and of all dealers in Yunnan and Szechuan opium. This increase in the levy is made in obedience to Imperial Decree, and must be carried into effect.

The temporary reduction is a sufficient concession on the part of the Government, and every one must submit to it quietly. Any resistance to the levy, or evasion of it, shall be reported to the authorities by the Syndicate, and the offender's shop will be sealed up, and he will be arrested and punished without mercy.

June 24, 1903.

Sir,

Inclosure 3 in No. 1.

Consul-General Scott to the Viceroy, Canton.

Canton, July 22, 1903. I HAVE the honour to call your Excellency's attention to a Proclamation which has been issued by the Provincial Government to the Hêng Chi Syndicate, now under the joint management of Wu K'uei P'u and Wu Yao Péng, sanctioning the reimposi- tion of the prepared opium tax. According to the terms of this Proclamation, and as the result of my inquiries, I learn that the Syndicate is empowered to compel the opium merchants to guarantee the annual payment to the Provincial Treasury of the sum of 800,000 dollars, an arrangement which, in every respect, is in direct contraven- tion of Treaty stipulations. It is, in fact, evident that, under these conditions, the opium will be liable for this tax immediately on import while it is yet within the Treaty port area, and while the packages are still unopened.

But what affects me most of all is that, on the 23rd March last, I came to a verbal agreement with your Excellency's predecessor that the levy should, on no account, he commenced until the British Minister had discussed and fully arranged matters with the Wai Wu Pu. I would submit that, in thus disregarding my agreement with the former Viceroy, your Excellency's action can only be construed as a breach of good faith, and certain to react against your authorities in the future.

I therefore feel it my duty to request your Excellency to issue immediate orders to the Hêng Chi Syndicate to withdraw the Proclamation in question, and suspend all action pending the result of the negotiations between the British Minister and the Wai-wu Pu.

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I have, &c.

(Signed)

JAMES SCOTT,

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