2
To my mind this action of the Canton authorities signifies that they are determined to disregard the provisions of the Additional Article of the Chefoo Convention, and I venture to point out to your Highness that a more courteous mode of procedure would be to give notice, as provided in the Article, of the desire of the Chinese Government to terminate it. When it is abrogated foreign opium will cease to pay 110 taels a picul at its entry into the port, but will only pay thirty, as it did prior to 1886. I feel sure that the dealers in foreign opium will welcome the change.
Your Highness,
I avail, &c.
(Signed) WALTER TOWNLEY.
Inclosure 2 in No. 1.
Mr. Townley to Prince Ching.
Peking, July 31, 1903. I HAVE the honour to refer to your Highness' letter of the 13th instant, with regard to the levy of li-kin on foreign opium on the Kiangsi border, in which your Highness informed me that the same tax was levied on foreign and native opium, and was therefore not an infringement of the provisions of the Additional Article to the Chefoo Convention.
I have received from His Majesty's Consul-General at Canton copies of correspondence with the Viceroy on the same subject, in which his Excellency adopts a similar attitude.
I beg to remind your Highness that, according to the provisions of the Additional Article, no additional tax can be levied on foreign opium until it can be shown that native opium both pays the same tax, and has also previously paid the same amount as foreign opium---that is, 110 taels per picul. The Governor of Kiangsi and the Viceroy of Canton make no attempt to prove that this condition is satisfied, for they know well that it is not. The amount paid by native opium in the Canton Province is, according to His Majesty's Consul-General, only some 23 taels per picul, as against 110 taels paid by the foreign drug.
It appears to me that the provincial authorities only see that their powers of taxing foreign opium are restrained, and forget that in return the Central Government obtains under the Additional Article such a revenue from foreign opium as it never received before. In addition to some 1,300,000 taels annual revenue from import duty on foreign opium, they receive, collected by the Imperial Maritime Customs, some 3,500,000 taels of li-kin on the foreign drug. It is this revenue that the provincial authorities will have to make up if the Additional Article is abrogated.
As I am reporting on the subject to His Majesty's Government by telegram, I shall be glad of an early answer to this letter.
I have, &c.
(Signed) WALTER TOWNLEY.
3
The 5th clause of the Additional Article provides that when the package of foreign opium has been opened, if any tax is levied it shall not be in excess of whatever tax is levied on native opium, and that the tax is calculated ad valorem. In the Canton arrangements for the levy of a tax on prepared opium no distinction is made between foreign and native opium. If the price of foreign opium is high, the tax is not increased; and if the price of native opium is low, no reduction in the tax is made. If a calculation be based on the comparative price of the two, the amount levied on native opium will be found to be greater than that on the foreign drug.
According to the above telegram, not only does native opium pay as much as foreign, but it pays more, and His Majesty's Consul-General's statement would seem to refer only to the li-kin levied in the Canton provinces, without taking into account the export and import duty and the li-kin paid in the intermediate provinces. There is no difficulty in making detailed inquiries on this point, in order that doubts and misgivings may be dispelled.
On the 29th ultimo the Board also received Mr. Townley's letter, stating that at Canton tax was being levied on foreign opium before the packages were opened, and they have telegraphed inquiries to Canton on this subject. They will have the honour to communicate the reply when it reaches them.
Meantime it is their duty to send this preliminary letter, showing that if the value of foreign and native opium is taken into account, foreign opium does not pay more than the native drug.
They have, &c.
(Cards of Prince and Ministers.)
Inclosure 4 in No. 1.
Mr. Townley to Prince Ch'ing,
Peking, August 11, 1903. Your Highness,
I COMMUNICATED to His Majesty's Consul-General at Canton by telegraph the statement of the former Viceroy of the Two Kuang, contained in your Highness' letter of 2nd instant, that native opium in the Canton provinces pays over 104 taels per picul. In reply, he reports that this is the amount paid by native opium reaching Canton by sea from Shanghai, but that of such opium there is a very small quantity; last year it was about 1,200 piculs out of some 12,000 imported into the province. On native opium reaching Canton otherwise than by sea--that is to say, on some nine-tenths of the total import of it--the li-kin payable in Canton is 23 taels per picul, and it nominally pays another 25 taels in the interior, but the greater part of this is not actually collected.
The figures as to the amount paid by native opium were supplied to the Viceroy by the promoters of the new farm, who cannot be regarded as trustworthy authorities in a matter in which they have a strong personal interest.
I have, &c.
(Signed) WALTER TOWNLEY.
(Translation.)
Inclosure 3 in No. 1.
Prince and Ministers to Mr. Townley,
August 2, 1903.
THE Board have the honour to acknowledge receipt of Mr. Townley's letter with regard to the taxation of prepared opium, in which he states that, according to the Additional Article to the Chefoo Convention, no additional tax can be levied on foreign opium until it has been shown that native opium both pays the same tax, and has also previously paid the same amount as foreign opium, that is, 110 taels per picul, and that according to His Majesty's Consul-General at Canton the amount paid by native opium in the Canton Province is only some 23 taels per picul.
This is a point on which the Board asked for information last year by telegraph from the Viceroy and Governor of Canton, and according to their telegram in reply Szechuen and Yünnan opium pay on export (i.e., evidently on export from the province in which they are produced) 26 taels per picul, and on reaching the Canton Province an import tax of 52 taels and a li-kin duty of 26 taels, making 104 taels in all. It has in addition to pay li-kin in the provinces it passes on its way, and therefore pays not less but more than the 110 taels combined duty and li-kin collected on foreign opium.
No. 2.
Consul-General Scott to the Marquess of Lansdowne.--(Received September 28.)
(No. 31. Confidential.)
Canton, August 28, 1903. My Lord,
IN continuation of my despatch No. 29 of the 18th instant, inclosing copies of correspondence with His Majesty's Chargé d'Affaires at Peking regarding the prohibition by the Viceroy of the export of cattle from Kuangsi, I have the honour to inclose a further despatch to His Majesty's Minister, No. 33 of to-day's date, on the same subject, showing the Viceroy's present attitude with regard to the question.
I have, &c. (Signed) JAMES SCOTT.
* There is evidently some confusion in the quotation from the Additional Article, which runs: “In the event of such tax being calculated ad valorem," &c.
9
:
2
To my mind this action of the Canton authorities signifies that they are determined to disregard the provisions of the Additional Article of the Chefoo Convention, and I venture to point out to your Highness that a more courteous mode of procedure would be to give notice, as provided in the Article, of the desire of the Chinese Government to terminate it. When it is abrogated foreign opium will cease to pay 110 taels a picul at its entry into the port, but will only pay thirty, as it did prior to 1886. I feel sure that the dealers in foreign opium will welcome the change.
Your Highness,
1 avail, &c.
(Signed) WALTER TOWNLEY.
Inclosure 2 in No. 1.
Mr. Townley to Prince Ching.
Peking, July 31, 1903. I HAVE the honour to refer to your Highness' letter of the 13th instant, with regard to the levy of li-kin on foreign opium on the Kiangsi border, in which your Highness informed me that the same tax was levied on foreign and native opium, and was therefore not an infringement of the provisions of the Additional Article to the Chefoo Convention.
I have received from His Majesty's Consul-General at Canton copies of correspon- dence with the Viceroy on the same subject, in which his Excellency adopts a similar attitude.
I beg to remind your Highness that, according to the provisions of the Additional Article, no additional tax can be levied on foreign opium until it can be shown that native opium both pays the same tax, and has also previously paid the same amonat as foreign opium---that is, 110 taels per picul. The Governor of Kiangsi and the Viceroy of Canton make no attempt to prove that this condition is satisfied, for they know well that it is not. The amount paid by native opium in the Canton Province is, according to His Majesty's Consul-General, only some 23 taels per picul, as against 110 taels paid by the foreign drug.
It appears to me that the provincial authorities only see that their powers of taxing foreign opium are restrained, and forget that in return the Central Government obtains under the Additional Article such a revenue from foreign opium as it never received before. In addition to some 1,300,000 taels annual revenue from import duty on foreign opium, they receive, collected by the Imperial Maritime Customs, some 3,500,000 taels of li-kin on the foreign drug. It is this revenue that the provincial authorities will have to make up if the Additional Article is abrogated.
As I am reporting on the subject to His Majesty's Government by telegram, I shall be glad of an early answer to this letter.
I have, &c.
(Signed)
WALTER TOWNLEY.
3
The 5th clause of the Additional Article provides that when the package of foreign opium has been opened, if any tax is levied it shall not be in excess of whatever tax is levied on native opium, and that the tax is calculated ad valorem. In the Canton arrangements for the levy of a tax on prepared opium no distinction is made between. If the price of foreign opium is high, the tax is not foreign and native opium. increased; and if the price of native opium is low, no reduction in the tax is made. If a calculation be based on the comparative price of the two, the amount levied on native opian will be found to be greater than that on the foreign drug.
According to the above telegram, not only does native opium pay as much as foreign, but it pays more, and His Majesty's Consul-General's statement would seem to refer only to the ti-kin levied in the Canton provinces, without taking into account the export and import duty and the li-kin paid in the intermediate provinces. There is no difficulty in making detailed inquiries on this point, in order that doubts and misgivings may be dispelled.
On the 29th ultimo the Board also received Mr. Townley's letter, stating that at Canton tax was being levied on foreign opium before the packages were opened, and they have telegraphed inquiries to Canton on this subject. They will have the honour to communicate the reply when it reaches them.
Meantime it is their duty to send this preliminary letter, showing that if the value of foreign and native opium is taken into account, foreign opium does not pay more than the native drug.
They have, &c.
(Cards of Prince and Ministers.)
Inclosure 4 in No. 1.
Mr. Townley to Prince Ch'ing,
year
it
Peking, August 11, 1903. Your lighness,
I COMMUNICATED to His Majesty's Consul-General at Canton by telegraph the statement of the former Viceroy of the Two Kuang, contained in your Highness' letter of 2nd instant, that native opium in the Canton provinces pays over 104 taels per picul. In reply, he reports that this is the amount paid by native opium reaching Canton by sea from Shanghae, but that of such opium there is a very small quantity; last was about 1,200 piculs out of some 12,000 imported into the province. On native opium reaching Canton otherwise than by sea--that is to say, on some nine-tenths of the total import of it-the li-kin payable in Canton is 23 taels per picul, and it nominally pays another 25 taels in the interior, but the greater part of this is not actually collected.
The figures as to the amount paid by native opium were supplied to the Viceroy by the promoters of the new farm, who cannot be regarded as trustworthy authorities in a matter in which they have a strong personal interest.
I have, &c.
(Signed) WALTER TOWNLEY.
(Translation.)
Inclosure 3 in No. 1.
Prince and Ministers to Mr. Townley,
August 2, 1903.
THE Board have the honour to acknowledge receipt of Mr. Townley's letter with regard to the taxation of prepared opium, in which he states that, according to the Additional Article to the Chefoo Convention, no additional tax can be levied on foreigu. opium until it has been shown that native opium both pays the same tax, and has also previously paid the same amount as foreign opium, that is, 110 taels per picul, and that according to His Majesty's Consul-General at Canton the amount paid by native opium in the Canton Province is only some 23 taels per picul.
This is a point on which the Board asked for information last year by telegraph from the Viceroy and Governor of Canton, and according to their telegram in reply Szechuen and Yünnau opium pay on export (i.e., evidently on export from the province in which they are produced) 26 taels per picul, and on reaching the Canton, Province an import tax of 52 taels and a li-kin duty of 26 taels, making 104 taels in all. It has in addition to pay li-kin in the provinces it passes on its way, and therefore pays not less but more than the 110 taels combined duty and li-kin collected on foreign opium,
No. 2.
Consul-General Scott to the Marquess of Lansdowne.--(Received September 28.)
(No. 31. Confidential.)
Canton, August 28, 1903. My Lord,
IN continuation of my despatch No. 29 of the 18th instant, inclosing copies of correspondence with His Majesty's Chargé d'Affaires at Peking regarding the prohibition. by the Viceroy of the export of cattle from Kuangsi, I have the honour to inclose a further despatch to His Majesty's Minister, No. 33 of to-day's date, on the same subject, showing the Viceroy's present attitude with regard to the question.
I have, &c. (Signed) JAMES SCOTT.
* There is evidently some confusion in the quotation from the Additional Article, which rans: “In the event of such tax being calculated ad valorem," &c.
9
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