[This Document is the Property of His Britannic Majesty's Government.]
1 15778
219
23 APR 041
CHINA TRADE.
CONFIDENTIAL.
No. 1.
[April 2]
SECTION 1.
(No. 3.) My Lord,
Acting Consul Fox to the Marquess of Lansdowne.-(Received April 2.)
Wuchow, February 26, 1904.
BY direction of His Majesty's Minister at Peking, I have the honour to inclose copy of a despatch and translation which I have addressed to the Financial Secretary of the Government of India in Calcutta, referring to the imposition by the Provincial Government of Kuangsi of an increased duty and tax on native opium.
His Majesty's Minister has further directed me to submit to your Lordship my views as to the probable effect on the Indian opium trade of this new taxation of the native product.
As the three principal native banks in Wuchow, members of the Shansi Bankers' Guild, are, I understand, strongly protesting against the new arrangement, which will, they assert, practically ruin their business, by obstructing the free passage of the drug from Yunnan, Kueichow, and Szechuan, and thereby diminishing the annual quantity imported, against which the banks have been in the habit of making advances to the opium dealers, it is possible that the Provincial Government may be induced to make considerable modifications in the new Tariff.
I therefore propose, with your Lordship's permission, to defer reporting more fully on this subject until I have been able to obtain more definite information regarding the new taxes and their probable effect on the foreign trade of Kuangsi.
I have, &c.
(Signed) HARRY H. FOX.
Inclosure 1 in No. 1.
Sir,
Acting Consul Fox to Government of India.
Wuchow, January 29, 1904.
I HAVE the honour to inclose translation of a notice which has been circulated among the opium dealers of this port, intimating that the Government of Kuangsi have decided to make important additions to the dues on native opium hitherto in force in this province.
The existing tax on native opium, which has for some years past been farmed out for a sum of 38,000 taels (£5,007) per annum, amounts to only 7 taels per picul (133⅓ lb.); on prepared opium no duty or tax has hitherto been levied.
By the new Regulations the collection of dues is taken out of the hands of the opium farmer and placed under the control of the li-kin Administration, who are authorized to levy a duty of 30 taels (£3. 19s.) per picul on raw opium and 70 taels (£9. 4s. 5d.) on prepared opium.
The revenue derived from native opium in this province during the last twenty years has, as far as I can gather, been proportionately considerably below the average amount collected in other provinces, and a higher rate would have been levied long ago but for the fact that the Provincial Government was pledged to the opium farmer, a person of great wealth and influence, for a period of years.
The steadily decreasing revenue derived from internal taxation, and the heavy military expenditure of the last few years, has brought the provincial exchequer to the verge of bankruptcy. The authorities are, therefore, drawing on every asset available for fiscal purposes; they have already imposed extra dues on salt and timber, and they have now turned their attention to opium.
The principal local dealers whom I have consulted, while admitting that the present Tariff is too low, are of opinion that the authorities have now gone to the other extreme, and imposed a Tariff that the trade will not be able to bear. They consider the new duties will defeat their object—firstly, by causing diminished import and sales, owing to the inevitable rise in prices, and secondly, by driving the opium which now comes down from
Page 2
[1982 6-1
-11
[This Document is the Property of His Britannic Majesty's Government.]
1 15778
219
23 APR 041
CHINA TRADE.
CONFIDENTIAL.
No. 1.
[April 2]
SECTION 1.
(No. 3.) My Lord,
Acting Consul Fox to the Marquess of Lansdowne.-(Received April 2.)
Wuchow, February 26, 1904. BY direction of His Majesty's Minister at Peking, I have the honour to inclose copy of a despatch and translation which I have addressed to the Financial Secretary of the Government of India in Calcutta, referring to the imposition by the Provincial Govern- ment of Kuangsi of an increased duty and tax on native opium.
His Majesty's Minister has further directed me to submit to your Lordship my views as to the probable effect on the Indian opium trade of this new taxation of the native product.
As the three principal native banks in Wuchow, members of the Shansi Bankers' Guild, are, I understand, strongly protesting against the new arrangement, which will, they assert, practically ruin their business, by obstructing the free passage of the drug from Yunnan, Kueichow, and Szechuan, and thereby diminishing the annual quantity imported, against which the banks have been in the habit of making advances to the opium dealers, it is possible that the Provincial Government may be induced to make considerable modifications in the new Tariff.
I therefore propose, with your Lordship's permission, to defer reporting more fully ou this subject until I have been able to obtain more definite information regarding the new taxes and their probable effect on the foreign trade of Kuangsi.
I have, &c.
(Signed) HARRY H. FOX.
Inclosure 1 in No. 1.
Bir,
Acting Consul Fox to Government of India.
Wuchow, January 29, 1904. I HAVE the honour to inclose translation of a notice which has been circulated among the opium dealers of this port, intimating that the Government of Kuangsi have decided to make important additions to the dues on native opium hitherto in force in this province.
The existing tax on native opium, which has for some years past been farmed out for a sum of 38,000 taels (5,0071.) per annum, amounts to only 7 taels per picul (1334 lb.); on prepared opium no duty or tax has hitherto been levied.
By the new Regulations the collection of dues is taken out of the hands of the opium farmer and placed under the control of the li-kin Administration, who are authorized to levy a duty of 30 taels (37. 19s.) per picul on raw opium and 70 taels (91. 4v. 5d.) on prepared opium.
The revenue derived from native opium in this province during the last twenty years bas, as far as I can gather, been proportionately considerably below the average amount collected in other prvinces, and a higher rate would have been levied long ago but for the fact that the Provincial Government was pledged to the opium farmer, a person of great wealth and influence, for a period of years.
The steadily decreasing revenue derived from internal taxation, and the heavy military expenditure of the last few years, bas brought the provincial exchequer to the verge of bankruptcy. The authorities are, therefore, drawing on every asset available for fiscal purposes; they have already imposed extra dues on salt and timber, and they have now turned their attention to opium.
The principal local dealers whom I have consulted, while admitting that the present Tariff is too low, are of opinion that the authorities have now gone to the other extreme, and imposed a Tariff that the trade will not be able to bear. They consider the new duties will defeat their object-firstly, by causing diminished import and sales, owing to the inevitable rise in prices, and secondly, by driving the opium which now comes down from
[1982 6-1
-11
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