This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
40990
October 24. TREES & DECOAT
709
SECTION OF
(No. 329.) My Lord,
Sir E. Satow to the Marquess of Lansdowne.—(Received October 24.)
Peking, September 8, 1904. IN continuation of my despatch No. 242 of the 7th July with reference to taxation on foreign opium, I have the honour to inclose translation of a further note from Prince Ch'ing, transmitting a communication from the Viceroy of Canton, in which the latter once more endeavours to prove that his plans involve no infringement of the Additional Article to the Chefoo Convention.
I have sent a copy of this note to His Majesty's Consul-General at Canton, and have requested him to forward his observations direct to your Lordship, and to furnish a copy of them to the Indian Government, to whom I am communicating a translation of Prince Ch'ing's note, together with a copy of this despatch.
I also inclose copy of the reply I am making to the note, in which I endeavour, by recalling the objects of the Additional Article, to induce the Central Government to restrain the ingenious efforts of the provincial authorities to evade it.
Prince Ch'ing quotes clause 5 of the Additional Article by way of justification, but omitting what seems to be an essential portion of it, namely, the provision that in taxing foreign opium equally with native ad valorem the li-kin must be first deducted. This quotation has apparently no bearing on the present proposal, which is one for the taxation of opium, both native and foreign, by weight, but I have thought it useful to call his Highness' attention to the omission.
I have, &c.
(Signed) ERNEST SATOW.
Inclosure 1 in No. 1.
Prince Ch'ing to Sir E. Satow.
(Translation.) Your Excellency,
Kuang Hsü, 30th day, 7th moon, 17th year (August 27, 1904),
ON the 4th July I had the honour to receive your Excellency's note with reference to the Regulations for the taxation of prepared opium at Canton. Your Excellency's views therein expressed were communicated by telegraph to the Viceroy, whose reply has now reached this Board. His Excellency states that Szechuan opium pays on export a customs duty of 22 taels and a li-kin of 6 t. 28 m. The provinces of the Liang Hu, viz., either Hupei or Hunan, and Kiangsi, each levy a transit due of 19 t. 2 m. on the opium passing through their borders, and there remains also the Kuangtung provincial li-kin of 23 taels to be paid. This makes a total of 88 t. 68 m. levied on Szechuan opium.
Yunnan opium, on export, pays a li-kin of 24 taels and customs duty of 9 t. 6 m. In passing through Kueichou Province it has to pay 19 t. 2 m., and in passing through Kuanghsi 16 taels. Add to this the Kuangtung li-kin of 23 taels, and the total becomes 91 t. 8 m.
Kueichou opium, on export, pays a li-kin of 22 t. 4 m. and a transit due in Kuanghsi of 10 taels, which, added to the Kuangtung li-kin of 23 taels, makes a total of 61 t. 4 m., Kueichou opium thus paying the smallest amount of all in duty and li-kin. In view of the value of foreign opium, this payment is, however, proportionately equivalent to the amount levied on the foreign drug.
The Canton provincial authorities have now established a head office for the taxation of native opium at Nan Hsiung Chou, on the Kiangsi border, while head offices are similarly established on the borders of Kuanghsi and Hunan. All native opium coming from any province to Canton shall, it has been arranged, be conveyed through the provinces concerned to the Kuangtung border, and it will only be permissible to put it on the market in the interior after a collective tax has been paid. In future the amount of collective taxes thus levied will be definite sums easily ascertainable, the payment of which it will be impossible to evade. The intention is to proceed with the
[2206 aa-3]
This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
No. 1.
40990
Roctober 24.1 TRERE & DECOAT
709
SECTION OF
(No. 329.) My Lord,
Sir E. Satow to the Marquess of Lansdownt.--(Received October 24.)
Peking, September 8, 1904. IN continuation of my despatch No. 242 of the 7th July with reference to taxation on foreign opium, I have the honour to inclose translation of a further note from Prince Ch'ing, transmitting a communication from the Viceroy of Canton, in which the latter once more endeavours to prove that his plans involve no infringement of the Additional Article to the Chefoo Convention.
I have sent a copy of this note to His Majesty's Consul-General at Canton, and have requested him to forward his observations direct to your Lordship, and to furnish a copy of them to the ludian Government, to whom I am communicating a translation of Prince Ch'ing's note, together with a copy of this despatch.
I also inclose copy of the reply I am making to the note, in which I endeavour, by recalling the objects of the Additional Article, to induce the Central Government to restrain the ingenious efforts of the provincial authorities to evade it.
Prince Ch'ing quotes clause 5 of the Additional Article by way of justification, but omitting what seems to be an essential portion of it, namely, the provision that in taxing foreign opium equally with native ad valorem the li-kin must he first deducted. This quotation has apparently no bearing on the present proposal, which is one for the taxation of opium, both native and foreign, by weight, but I have thought it useful to call his Highness' attention to the omission.
I bave, &c.
(Signed) ERNEST SATOW.
Inclosure 1 in No. 1.
Prince Ch'ing to Sir E. Satou.
(Translation.) Your Excellency,
Kuang Isü, 17th year, 7th moon,
(August 27, 1904),
30th day
ON the 4th July I had the honour to receive your Excellency's note with reference to the Regulations for the taxation of prepared opium at Canton. Your Excellency's views therein expressed were communicated by telegraph to the Viceroy, whose reply has now reached this Board. His Excellency states that Szechuan opium pays on export a customs duty of 22 taels and a li-kin of 6 t. 28 m. The provinces of the Liang Hu, viz., either Hupei or Hunan, and Kiargsi, cach levy a transit due of 19 t. 2 m. on the opium passing through their borders, and there remains also the Kuangtung provincial li-kin of 23 taels to be paid. This makes a total of 88 t. 68 m. levied on Szechuan opium.
Yunnan opium, on export, pays a li-kin of 24 taels and customs duty of 9 t. 6 m. In passing through Kueichou Province it has to pay 19 t. 2 m., and in passing through Kuanghsi 16 taels. Add to this the Kuangtung li-kin of 23 tuels, and the total becomes 91 t. 8 m.
:
Kueichou opium, on expert, pays a li-kin of 22 t. 4 m. and a transit due in Kuanghsi of 10 taels, which, added to the Kuangtung li-kin of 23 taels, makes a total of 61 t. 4 m., Kueichou opium thus paying the smallest amount of all in duty and li-kin. In view of the value of foreign opium, this payment is, however, proportionately equivalent to the amount levied on the foreign drug.
The Canton provincial authorities have now established a head office for the taxation of native opium at Nan Hsiung Chou, on the Kiangsi border, while head offices are similarly established on the borders of Kuanghsi and Hunan. All native opium coming from any province to Canton shall, it has been arranged, be conveyed through the provinces concerned to the Kuangtung border, and it will only be permissible to put it on the market in the interior after a collective tax has been paid. In tuture the amount of collective taxes and in thus levied will be definite sums easily ascertainable, the payment of which it will be impossible to evade. The intention, is to proceed with the
[2206 aa-3]
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