12
disappearance of revenue, and since the tax is only levied on the prepared drug and not on the latter as estimated from the raw opium, there is no contravention of the Treaty,
The Board have the honour to communicate the above for your Excellency's information.
Your Highness,
Inclosure 12 in No. 1.
Sir E. Satow to Prince Ching,
Peking, June 21, 1904. I HAVE the honour to acknowledge the receipt of your Highness' note of the 3rd June, forwarding to me copy of a telegram from the Viceroy of Canton with reference to a proposal to revive the tax on licences for the sale of prepared opium, which was in existence previous to 1902, when it was changed to a system for calculating the amount of prepared opium from the raw drug. This system was abandoned in consequence of a note addressed to your Highness by His Majesty's Chargé d'Affaires in August of last year.
His Majesty's Acting Consul-General at Canton has reported to me on this subject that as far as he can understand from the verbal explanations furnished to him by the Viceroy, the proposed tax is an infringement of the Additional Article to the Chefoo Convention, but he is still awaiting the receipt of a copy of the proposed new Regulation. When his report on the new Regulation reaches me I shall be in a position to address your Highness on the subject in detail, but in the meantime I have the honour to request that the Chinese Government will withhold their consent to the Viceroy's proposals.
I avail, &c. (Signed)
ERNEST SATOW.
13
Inclosure 15 in No. 1.
Sir E. Satow to Prince Ching.
I
Peking, July 4, 1904. Your Highness,
I HAVE the honour to acknowledge the receipt of your Highness' note of the 24th June, transmitting a copy of the Regulations for the taxation of prepared opium at Canton, proposed by the Viceroy, to which I have given careful consideration. I regret to say that I am unable to take the view that these Regulations do not infringe the provisions of the Additional Article to the Chefoo Convention, for, as was pointed out to your Highness by Mr. Townley in his note of the 16th June last year, the fifth section of that Article contains an undertaking by the Chinese Government that when the packages of foreign opium have been opened at the place of consumption it shall not be subjected to any tax or contribution, direct or indirect, other than, or in excess of, such tax or contribution as is or may hereafter be levied on native opium. No provision is inserted in the Regulations to insure that before foreign opium can be taxed native opium must first have paid 110 taels per 100 catties, and unless this is done the Additional Article is, in my opinion, infringed.
I propose, however, transmitting a copy of the proposed Regulations both to His Majesty's Government and to the Government of India for their consideration, and on receiving their reply I shall have the honour of addressing your Highness on the subject again.
I avail, &c.
ERNEST SATOW.
(Signed)
Inclosure 13 in No. 1.
Prince Ch'ing to Sir E. Satow.
Your Excellency,
Peking, June 24, 1904. ON the 21st instant I had the honour to receive your Excellency's note regarding the question of licences for the sale of prepared opium at Canton, in which you state that you await the receipt of the new Regulations from His Majesty's Acting Consul-General before addressing me in detail on the subject.
This Board has now received the Regulations in question from the Viceroy at Canton, and I have the honour, in inclosing a copy of them for your Excellency's information, to request an early reply.
I avail, &c.
Inclosure 14 in No. 1.
Prince and Ministers to Sir E. Satow,
Your Excellency,
July 3, 1904, REFERRING to previous correspondence (summarized) on the subject of taxation of prepared opium at Canton, and to the Board's despatch of the 24th June, transmitting a copy of the new Regulations, the Board has now received a further telegram from the Viceroy to the effect that the finances of the province are much straitened, and that he is anxiously awaiting the commencement of the arrangements for the tax on prepared opium, in the hope that it will meet the deficit. The proposed Regulations are in no way in conflict with the Treaty, and the Viceroy begs the Board to come to an immediate arrangement with your Excellency.
The Board beg to observe that the Regulations proposed by the Viceroy for the levy of a duty on prepared opium are, they consider, certainly not an infringement of the Additional Article, and they beg your Excellency to favour them with a prompt reply, in the interests of the revenue,
They have, &c.
0
478
12
disappearance of revenue, and since the tax is only levied on the prepared drug and not on the latter as estimated from the raw opium, there is no contravention of the Treaty,
The Board have the honour to communicate the above for your Excellency's information.
Your Highness,
Inclosure 12 in No. 1.
Sir E. Satow to Prince Ching,
Peking, June 21, 1904. I HAVE the honour to acknowledge the receipt of your Highness' note of the 3rd June, forwarding to me copy of a telegram from the Viceroy of Canton with reference to a proposal to revive the tax on licences for the sale of prepared opium, which was in existence previous to 1902, when it was changed to a system for calculating the amount of prepared opium from the raw drug. This system was abandoned in consequence of a note addressed to your Highness by His Majesty's Chargé d'Affaires in August of last
year.
His Majesty's Acting Consul-General at Canton has reported to me on this subject that as far as he can understand from the verbal explanations furnished to him by the Viceroy, the proposed tax is an infringement of the Additional Article to the Chefoo Convention, but he is still awaiting the receipt of a copy of the proposed new Regulation. When his report on the new Regulation reaches me I shall be in a position to address your Highness on the subject in detail, but in the meantime I have the honour to request that the Chinese Government will withhold their consent to the Viceroy's proposals.
I avail, &c. (Signed)
ERNEST SATOW.
13
Inclosure 15 in No. 1.
Sir E. Satow to Prince Ching.
I
Peking, July 4, 1904. Your Highness,
I HAVE the honour to acknowledge the receipt of your Highness' note of the 24th June, transmitting a copy of the Regulations for the taxation of prepared opium at Canton, proposed by the Viceroy, to which I have given careful consideration. regret to say that I am unable to take the view that these Regulations do not infringe the provisions of the Additional Article to the Chefoo Convention, for, as was pointed out to your Highness by Mr. Townley in his note of the 16th June last year, the fifth section of that Article contains an undertaking by the Chinese Government that when the packages of foreign opium have been opened at the place of consumption it shall not be subjected to any tax or contribution, direct or indirect, other than, or in excess of, such tax or contribution as is or may hereafter be levied on native opium. No provision is inserted in the Regulations to insure that before foreign opium can be taxed native opium must first have paid 110 taels per 100 catties, and unless this is done the Additional Article is, in my opinion, infringed.
I proposc, however, transmitting a copy of the proposed Regulations both to His Majesty's Government and to the Government of India for their consideration, and on receiving their reply I shall have the honour of addressing your Highness on the subject again.
I avail, &c.
ERNEST SATOW.
(Signed)
Inclosure 13 in No. 1.
Prince Ch'ing to Sir E. Satow.
Your Excellency,
Peking, June 24, 1904. ON the 21st instant I had the bonour to receive your Excellency's note regarding the question of licences for the sale of prepared opium at Canton, in which you state that you await the receipt of the new Regulations from His Majesty's Acting Consul-General before addressing me in detail on the subject.
This Board has now received the Regulations in question from the Viceroy at Canton, and I have the honour, in inclosing a copy of them for your Excellency's information, to request an early reply.
I avail, &c.
Inclosure 14 in No. 1.
Prince and Ministers to Sir E. Satow,
Your Excellency,
July 3, 1904, REFERRING to previous correspondence (summarized) on the subject of taxation of prepared opium at Canton, and to the Board's despatch of the 24th June, transmitting a copy of the new Regulations, the Board has now received a further telegram from the Viceroy to the effect that the finances of the province are much straitened, and that he is anxiously awaiting the commencement of the arrangements for the tax ou prepared opium, in the hope that it will meet the deficit. The proposed Regulations are in no way in conflict with the Treaty, and the Viceroy begs the Board to come to an immediate arrangement with your Excellency.
The Board beg to observe that the Regulations proposed by the Viceroy for the levy of a duty on prepared opium are, they consider, certainly not an infringement of the Additional Article, and they beg your Excellency to favour them with a prompt reply, in
They have, &c.
the interests of the revenue,
0
478
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