CO129-326 - Foreign Office - 1904 — Page 554

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If, as is stated in your note, the time has arrived when the duty actually levied. on the drug has ceased to have the effect of "placing restrictions on its consumption," it appears to me that the proper remedy is to be found in placing the native drug on an equal basis of taxation with the imported article.

If, with the objects of increasing the revenue and of restricting the consumption. of opium, the Chinese Government proposed to undertake the effective control of the opium trade by means of a State nonopoly, extending to the native-grown product and placing the latter in respect of enhanced taxation on equality with the foreign article, His Majesty's Government would be prepared to meet the Chinese Government in a fair and equitable spirit,

Before, however, any such proposal could be brought into operation, the opium provisions of the Chefoo Convention or of the Treaty of Tien-tsin would have to be modified, and the consent of His Majesty's Government to such an arrangement would be conditional on a guarantee of impartial administration and on the insertion of suck provisions as would protect Indian opium, in respect of any tax, due, or duty, direct or indirect, from differential treatment in comparison with the product of China or of other countries.

1 am, &c.

(Signed) LANSDOWNE,

This Document is the Property of His Britannic Majesty's Government) 0.

35217

CHINA TRADE.

CONFIDENTIAL.

No. 1.

[September 20.}

SECTION 1.

551

TT OCT 04

Sir E. Satow to the Marquess of Lansdowne.-(Received September 26.)

(No. 291.)

Peking, August 11, 1904. My Lord,

I HAVE the honour to transmit to your Lordship herewith a copy of an Intelligence Report which I have received from His Majesty's Consul at Kongmoon, which contains some interesting information as to that newly-opened port.

With regard to Mr. Werner's statement that the direct Hong Kong-Wuchow steamers are obliged to make a deviation of 28 miles to Kongmoon in order to fulfil estoras requirements, I have the honour to inform your Lordship that this and other grievances put forward by British ship-owners as to their treatment by the Customs authorities at Kouginoon have already formed the subject of correspondence between this Legation and His Majesty's Consulate-General at Canton.

Mr. Campbell informed me on the 24th June that he had spokea privately on the subject to the Commissioner of Customs at Canton, who pointed out that the present rules were only provisional, and mentioned (for Mr. Campbell's private information) that the three Commissioners of Samshui, Kongmoon, and Canton were shortly to meet to discuss necessary alterations.

Mr. Campbell gathered that there is a reasonable expectation that the West River steamers will be given the option of depositing papers at Samshui (or Kumchuk) or Kongmoon, as may suit their convenience.

I have, &c. (Signed)

ERNEST SATOW.

Inclosure in No. 1.

KONGMOON INTELLIGENCE REPORT, JUNE QUARTER, 1904.

CONTENTS.

I. Political and General--

1. General Remarks on Kongmoon

2. The Kongmoon District a district by itself

3. Kongmoon City and Treaty Port

4. Custom-house

5. Land purchase

6. Foreign firms

7. Postal arrangements ..

8. Absence of telegraph line

9. Regulations respecting steamers

10. Number of foreign steamers

11. Native shipping

II. Commercial-

1. Passenger trade

2. Imports

3. Li-kin

4. Exports

5. Palm-lent fans

6. Other exports

7. Kongmoon and Samshui

III. Naval and Military

IV. Foreign officials

.

Work of British Consulate

7. Chinese officials

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