(No. 41.) Sir,
2
Inclosure 1 in No. 1.
Acting Consul-General Campbell to Sir E. Satow.
Canton, June 7, 1904.
SINCE January last I have been aware of a recurrence of the desire of the Provincial Government to raise more revenue out of opium, and on two or three occasions, in conversation with the Viceroy's Foreign Secretary, I made it quite clear that, in my view, his Excellency should arrange to tax native opium only or to leave opium alone. But the Viceroy's financial necessities are pressing beyond measure, and they make him too eager to listen to any scheme which will produce money.
On the 30th May I received from him a letter (copy and translation inclosed) informing me that he was adopting a recommendation which had been submitted to him to reintroduce licence fees on prepared opium, and that he had established an Office for a trial of the new tax. I asked his Excellency at once for an interview to discuss this letter, and as he happened to be calling on the French Secretary of Legation, M. Casenave, he arranged to meet me at this Consulate-General on the 1st June.
Briefly, the Viceroy's arguments were that the proposed tax was no contravention of the Additional Article of 1885; that prepared opium ("kao") was not raw opium ("tu"), but a different article altogether, just as a shirt is different from raw cotton; that he was only reintroducing a scheme which had been in operation for nearly twenty years in Canton without a particle of opposition from His Majesty's Consuls—a fact of which his Excellency had personal knowledge when he was Financial Commissioner of Kuangtung six years ago; and that similar schemes were at the moment in force in other provinces without objection from His Majesty's Consuls.
My reply was that the proposed tax appeared to be in conflict with the terms of the Additional Article as expounded by no less an authority than Sir Robert Hart; that I could not accept his contention that "kao" and "tu" were different articles for revenue purposes; that I was not aware of the existence of similar schemes in other provinces; and that the tax he referred to as having existed in Kuangtung was an insignificant arrangement involving something under 100,000 taels a year at the most, which probably for that reason had escaped notice, whereas the scheme under consideration was designed to raise over 1,000,000 taels.
The discussion was long and amicable, but as the Viceroy had evidently made up his mind that the Additional Article was not infringed, and direct argument against the tax seemed profitless, I took the ground that, in any case, in view of the Additional Article of 1885, he would lay himself open to a serious rebuff if he levied a tax affecting foreign opium without the preliminary agreement of the Wai-wu Pu and yourself. As this prospect did not appear to disconcert him, I gave him the option of two things: (1) That I should telegraph to you to move the Wai-wu Pu to stop the tax (and in mentioning this I drew attention to clause 7 of the Additional Article); or (2) that we should both report to Peking and ask you and the Wai-wu Pu to decide whether the proposed tax is legal. He agreed to the second course. I arranged that he should write me a full statement of his case, inclosing copies of the old Regulations, which he said were not objected to, and of the new ones which he proposed to enforce, and I promised to put the matter before you fairly and without bias; he, on the other hand, agreed to inform the Wai-wu Pu, and to take no action towards a levy of the tax until the question was decided by the Wai-wu Pu and yourself.
In pursuance of this arrangement I received from him on the 4th June a despatch, copy and translation of which I have the honour to inclose. To avoid misunderstanding I replied to his Excellency yesterday in the terms of Inclosure 3.
As soon as I receive the proposed new Regulations asked for in this last despatch I shall address you again on the subject.
I have, &c.
(Signed) C. W. CAMPBELL.
3
Inclosure 2 in No. 1.
Viceroy of Canton to Acting Consul-General Campbell.
(Translation.)
K. H. xxx. 4th 16th (May 30, 1904).
Sir,
IN the Canton Province licences for the sale of prepared opium ("kao-pai") were issued formerly, and the practice continued for years. Afterwards, in 1902, when merchants were invited to alter this practice to opium certificates ("kan-yin"), your predecessor addressed several letters to the Canton Government stating that he had received from His Britannic Majesty's Minister at Peking instructions to request the cessation of the certificates on the ground that they violated the Chefoo Convention.
My predecessor and myself at various times gave orders to the officers concerned to draw up more satisfactory Regulations for approval, and those officers now request that the opium tax objected to should be withdrawn from the hands of the merchants and be brought under official management, and that, in accordance with the former procedure, a tax on boiled and prepared opium only should be levied by licences ("kao-p'ai"). There are precedents for this course in the Provinces of Kiangsi, Chekiang, Anhui, Hupeh, and others, and formerly it was the practice in the Canton Province.
As it has nothing whatever to do with the Chefoo Convention, I have already sanctioned the establishment of an Office for a trial levy of the tax.
I have requested the Wai-wu Pu by telegram to inform his Excellency the British Minister at Peking.
I avail, &c.
Inclosure 3 in No. 1.
Viceroy of Canton to Acting Consul-General Campbell.
(Translation.)
K. H. xxx. 4th 20th (June 3, 1904).
Sir,
WITH reference to the levy of licence fees on prepared opium in the Canton Province, I am in receipt of a report from the Shan Hou Chü (Provincial Executive Council) requesting me to withdraw the tax from the hands of merchants and bring it under official management, recommending that it should be levied on opium already boiled and prepared only, and stating that it involves no infringement whatever of the Chefoo Convention. I have already sanctioned the establishment of an Office for an experimental levy of the tax, and I had the honour to inform you on the 30th May of the steps I was taking. On the same day, in a personal interview, I communicated to you the whole of the circumstances connected with this tax. Licence fees on prepared opium were levied in the Canton Province from a long time back. In 1884 an Office was established and the levy commenced, and ten years and more afterwards, in 1898, when I was Financial Commissioner of Kuangtung, I collected this tax. At that time the Additional Article to the Chefoo Convention had long been concluded, and yet I never heard that a British official uttered a syllable in objection to the tax. Afterwards, in 1899, in consequence of the short returns, it was handed over to the Yung An Tang firm to manage, and for three years after that neither His Britannic Majesty's Minister at Peking nor His Britannic Majesty's Consul-General offered any objection. In 1902 tenders were invited to alter the system into one of prepared opium certificates, but because the Regulations stated that the quantity of prepared drug was to be estimated from the amount of raw opium, and was, therefore, of the nature of a second levy on the raw opium, your predecessor wrote stating that he had received instructions from His Britannic Majesty's Minister to request the discontinuance of the tax on the ground that it violated the terms of the Chefoo Convention.
My predecessor and myself since then gave orders to the officers concerned to draw up more satisfactory Regulations for approval, and the Regulations now proposed by the Shan Hou Chü are similar to those in force before 1902. Not only have these been handed down for a long time past in the Canton Province, but in other provinces similar Regulations have been in force. The matter is one concerning the internal government of the province, and has no concern whatever with the Chefoo Convention.
I have the honour to inclose a copy of the original Regulations of the Yung An Tang for your information, and avail myself, &c.
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(No. 41.) Sir,
2
Inclosure 1 in No. 1.
Acting Consul-General Campbell to Sir E. Satow.
Canton, June 7, 1904. SINCE January last I have been aware of a recurrence of the desire of the Provincial Government to raise more revenue out of opium, and on two or three occasions, in conversation with the Viceroy's Foreign Secretary, I made it quite clear that, in my view, his Excellency should arrange to tax native opium only or to leave opium alone. But the Viceroy's financial necessities are pressing beyond measure, and they make him too eager to listen to any scheme which will produce money.
On the 30th May I received from him a letter (copy and translation inclosed) informing me that he was adopting a recommendation which had been submitted to him to reintroduce licence fees on prepared opium, and that he had established an Office for a trial of the new tax. I asked his Excellency at once for an interview to discuss this letter, and as he happened to be calling on the French Secretary of Legation, M. Casenave, he arranged to meet me at this Consulate-General on the 1st June.
Briefly, the Viceroy's arguments were that the proposed tax was no contravention of the Additional Article of 1885: that prepared opium (" kao ") was not raw opium ("tu"), but a different article altogether, just as a shirt is different from raw cotton; that he was only reintroducing a scheme which had been in operation for nearly twenty years in Canton without a particle of opposition from His Majesty's Consuls-a fact of which his Excellency had personal knowledge when he was Financial Commissioner of Kuangtung six years ago; and that similar schemes were at the moment in force in other provinces without objection from His Majesty's Consuls.
My reply was that the proposed tax appeared to be in conflict with the terms of the Additional Article as expounded by no less au authority than Sir Robert Hart; that I could not accept his contention that "kao " and "tu" were different articles for revenue purposes; that I was not aware of the existence of similar schemes in other provinces; and that the tax he referred to as having existed in Kuangtung was an insignificant arrangement involving something under 100,000 taele a year at the most, which probably for that reason had escaped notice, whereas the scheme under consideration was designed to raise over 1,000,000 taels.
The discussion was long and amicable, but as the Viceroy had evidently made up his mind that the Additional Article was not infringed, and direct argument against the tax seemed profitless, I took the ground that, in any case, in view of the Additional Article of 1885, he would lay himself open to a serious rebuff if he levied a tax affecting foreign opium without the preliminary agreement of the Wai-wu Pu and yourself. As this prospect did not appear to disconcert him, I gave him the option of two things: (1) That I should telegraph to you to move the Wai-wu Pu to stop the tax (and in mentioning this I drew attention to clause 7 of the Additional Article); or (2) that we should both report to Peking and ask you and the Wai-wu Pu to decide whether the proposed tax is legal. He agreed to the second course. 1 arranged that he should write me a full statement of his case, inclosing copies of the old Regulations, which he said were not objected to, and of the new ones which he proposed to enforce, and I promised to put the matter before you fairly and without bias; he, on the other hand, agreed to inform the Wai-wu Pu, and to take no action towards a levy of the tax until the question was decided by the Wai-wu Pu and yourself.
In pursuance of this arrangement I received from him on the 4th June a despatch, copy and translation of which I have the honour to inclose. To avoid misunderstanding I replied to his Excellency yesterday in the terms of Inclosure 3.
As soon as I receive the proposed new Regulations asked for in this last despatch I shall address you again on the subject.
I have, &c.
(Signed) C. W. CAMPBELL.
3
Inclosure 2 in No. 1.
Viceroy of Canton to Acting Consul-General Campbell.
(Translation.)
K. H. xxx. 4th 16th (May 30, 1904). Sir,
IN the Canton Province licences for the sale of prepared opium ("kao-pai ") were Afterwards, in 1902, when issued formerly, and the practice continued for, years. merchants were invited to alter this practice to opium certificates ("kan-yin"), your predecessor addressed several letters to the Canton Government stating that he had received from His Britannic Majesty's Minister at Peking instructions to request the cessation of the certificates on the ground that they violated the Chefoo Convention.
My predecessor and myself at various times gave orders to the officers concerned to draw up more satisfactory Regulations for approval, and those officers now request that the opium tax objected to should be withdrawn from the hands of the merchants and be brought under official management, and that, in accordance with the former procedure, a tax on boiled and prepared opium only should be levied by licences ("kao-p'ai "). There are precedents for this course in the Provinces of Kiangsi, Chekiang, Anhui, Hupeb, and others, and formerly it was the practice in the Canton Province.
As it has nothing whatever to do with the Chefoo Convention, I have already sanctioned the establishment of an Office for a trial levy of the tax.
I bave requested the Wai-wu Pu by telegram to inform bis Excellency the British Minister at Peking.
I avail, &c.
Inclosure 3 in No. 1.
Viceroy of Canton to Acting Consul-General Campbell.
(Translation.)
K. H. xxx. 4th 20th (June 3, 1904). Sir,
WITH reference to the levy of licence fees on prepared opium in the Cauton Province, I am in receipt of a report from the Shan Hou Chü (Provincial Executive Council) requesting me to withdraw the tax from the bands of merchants and bring it under official management, recommending that it should be levied on opium already boiled and prepared only, and stating that it involves no infringement whatever of the Chefoo Convention. I have already sanctioned the establishment of an Office for an experimental levy of the tax, and I had the honour to inform you on the 30th May of the steps I was taking. On the same day, in a personal interview, I communicated to you the whole of the circumstances connected with this tax. Licence fees on prepared opium were levied in the Canton Province from a long time back. In 1884 an Office was established and the levy commenced, and ten years and more afterwards, in 1898, when I At that time the was Financial Commissioner of Kuangtung, I collected this tax. Additional Article to the Chefoo Convention had long been concluded, and yet I never heard that a British official uttered a syllable in objection to the tax. Afterwards, in 1899, in consequence of the short returns, it was handed over to the Yung An Tang firm to manage, and for three years after that neither His Britannic Majesty's Minister at In 1902 Peking nor His Britannic Majesty's Consul-General offered any objection. tenders were invited to alter the system into one of prepared opium certificates, but because the Regulations stated that the quantity of prepared drug was to be estimated from the amount of raw opium, and was, therefore, of the nature of a second levy on the raw opium, your predecessor wrote stating that he had received instructions from His Britannic Majesty's Minister to request the discontinuance of the tax on the ground that it violated the terms of the Chefoo Convention.
My predecessor and myself since then gave orders to the officers concerned to draw up more satisfactory Regulations for approval, and the Regulations now proposed by the Shan Hou Chů are similar to those in force before 1902. Not only have these been banded down for a long time past in the Canton Province, but in other provinces similar Regulations have been in force. The matter is one concerning the internal government of the province, and has no concern whatever with the Chefoo Convention.
I have the honour to inclose a copy of the original Regulations of the Yung An Tang for your information, and avail myself, &c.
473
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