CO129-326 - Foreign Office - 1904 — Page 383

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This Document is the Property of His Britannic Majesty's Government.]

CHINA TRADE.

CONFIDENTI 1),

No. 1.

380

(July 14.]

SECTION 1.

Acting Consul For to the Marquess of Lrusdoime.--Received July 14.)

Wuchow, June 6, 1904.

(No. 9.) My Lord,

I HAVE the honour to inclose copy of a despatch which I have addressed to Ilis Majesty's Minister in Peking on the subject of the increased taxation of native opium in the province of Kuangsi, and its probable effect on the Indian opium trade.

I have, &c.

(Signed)

HARRY H. FOX.

Sir,

Inclosure in No. 1.

Acting Consul Fox to Sir E. Satow.

Wuchow, June 4, 1904.

I HAVE the honour to acknowledge receipt of your despatch No. 3 of the 20th May, directing me to furnish a further Report on the new Kuangsi native opium tax and its probable effect on the Indian opium trade.

I do not think that sufficient time has yet elapsed since the imposition of the new duties to enable one to form a correct estimate of their probable effect on the import of Indian opium into this province. During the four months that the new Tariff has been in force only one large consignment is reported to have left Yunaan for Canton. Those consignments have hitherto been forwarded triennially, one about the month of May, another in August, the third in October. The average quantity coming down the West River to Wuchow being, as previously reported, about 25,000 chests, each consignment may roughly be estimated at 8,000 chests. The first consignment this year amounts, I am informed, to only 2,500 chests; the balance is said to have been sent overland through Hunan; a part coming down via the Ho River to Fengchuan and Dosing in the neighbouring province of Kuangtung; a part viâ Shaokuan and the North River to Samshui. The latter route avoids Kuangsi entirely, the former passes through the north-eastern corner where there are no li-kin stations. principal opium dealers in Wuchow have opened branches at Dosing where it is expected the bulk of the Yunnan opium output will now find its way. The new route will doubtless prove more expensive and more liable to interruption thau the old one, but it will in the end be cheaper as the opium will only have to pay the Kuangtung province hi-kin charges, which amount to 40 taels per picul. Another reason why opium will now avoid the West River route is that the new Regulations forbid the opening of chests in transit; this puts a stop to the lucrative business of adulterating opium which has been carried on in Wuchow for many years past; the opium will now be "prepared" for the Canton market at Dosing.

The

The general opinion seems to be that if the Kuangsi authorities persist in enforcing the new Regulations the West River opium trade is doomed. They are powerless to prevent the opium finding its way to Canton viâ extra-provincial routes; the result of their action will be to divert it into other channels to the detriment of the provincial exchequer and the trade of the West River.

The poverty of the people of Kuangsi prevents them indulging in the opium habit to any great extent; of the total amount hitherto passing through the province, only about 20 per cent. is estimated to be retained for local consumption. Therefore, although the retail price of opium in Wuchow and Nanning has risen from about 5 taels (13.) to 9 taels (11. 38.) per catty and the sale of the native drug is likely to decrease in consequence, I do not think the import of Indian opium, which has hitherto been infinitesimal, will be appreciably affected, The Maritime Customs returns for March quarter, 1904, show an import of 122 piculs of Patna, during the same period last year the import was nil. On the other hand, in June quarter 1903, Patna and

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