CO129-330 - Public Offices - 1905 — Page 425

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(1.) About 7 rupees a picul (1334 lb.) from Hsiakuan to Tengyueh, mule carriage.

(2.) About 5 rupees a picul from Tengyuch to Bhamo, mule carriage. These rates would tend to go up if much export opium was brought forward.

(8.) Yünnan l-kin, 66 rupees a picul.

(4.) Packing, &c., say, 2 rupees a picul.

Or a total of 80 rupees a picul for transport of a picul from Hsiakuan to Tengyueh and so to Bhamo, This is a minimum, and does not include any export duty which may be levied by the Customs.

In the event of opium from Haiakuan being sent to Shanghae via Szechuan and the Yang-tsze, the charges would be as follows:-

(J.) Mule transport to Yunnan-fu, 7 rupees to 8 rupees per picul.

(2.) Yünnan l-kin, 66 rupees a picul.

(3) Transport from Yunnan-tu to the Yang-tsze via Lao Wa Tau, 18 rupees to

20 rupees, about, per picul.

(4) Szechuan li-kin, 10 rupees per picul.

(5.) Szechuan (Chungking) Customs departure duty, 40 rupees per picul.

(6.) Ichang (Hupet) Customs arrival duty, 80 rupees per picul.

No

(7.) Transport down Yang-tsze by junk to Ichang and then by steamer. information, but probably not less than 10 rupees per picul, or, in all, 234 rupees per picul to reach Shanghac.

(5) and (6) are levied under special regulations. I believe that these levies, as well as (4). have recently been increased 30 per cent. I speak of 1896 when I was serving in Szechuan,

5. Lastly, I am asked what transit duty might be suitably levied by Burmah, and what rate of import duty should be levied on Yünnan opium brought by sea into China. I would observe, in reply, that the essence of the scheme put forward is that full provincial li-kin, whatever it may be, no more and no less, should be collected by the provincial authorities in the province of provenance (Yünnan), and in the province of destination (Canton, or whatever it may be). The Customs, under my scheme, would see that no more and no less was in fact levied.

But the various duties and blackmail levied on inland provinces of transit, say, Kweichou or Kwangsi, under the present system of inland transit would, under the scheme now put forward, be avoided.

In place of them duties might be levied :-

(1.) Export by Tengyueh Customs;

(2.) Transit by the Burmah Government;

(3.) Destination or re-entry duty, the Customs at Canton, or wherever else it

may be.

I would point out that transport and provincial hi-kin in Yunnan are both far heavier than in Szechuan; I would, therefore, suggest that the Tengyueh export duty should be considerably lighter than at Chungking, and that Sir R. Hart should be moved to assent to a levy by the Customs on Yunnan opium sent out via Burmab of not more than 10 taels or 20 rupees a picul, including both export and re-entry duties.

As for the amount of transit duty to be levied by Burmah, I would suggest that, at least at first, it would be best to impose a light duty only. The whole case is that India should adopt some such scheme as I now put forward, not in the interests merely of Chinese merchants, but in the interests of her own trade and influence in Yünnan. I suggest a duty of 5 rupees a box of 1⁄2 picul, or 10 rupees for a mule load of 14 piculs, or 2,400 oz., but that, in whatever agreement is come to, it should be understood that India reserves the right to raise the transit duty to, say, 25 rupees or more per box; this is, of course, a point on which I can only put forward a suggestion for

consideration.

Thus the total duties paid would be:-

(1.) Yünnan li-kin.

(2.) Tengyueh Customs export;

(3.) Burmah transit;

(4.) Canton (or port of re-entry) Customs;

(6.) Canton (or province of consumption) li-kin.

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Mr. Campbell, in paragraph 3, states that the Government of India agree that if the transit of opium is permitted, some expansion of the Burmah trade will necessarily occur, but that the extent of this expansion is problematical."

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may ask permission to point out in what sense it is problematical. The anticipated expansion would depend, first of all, on the precise monetary arrangements finally approved of, for on this depends, in the first instance, the advantage to be gained by merchants using the Burmah route.

Postulating that the main charges, ie., li-kin in the province of provenance (Yunnan) and in the province of destination, will be the same by whichever route the drug is sent to the East Coast, the merchants will have to balance-

(1.) Comparative cost of transport by the Burmah route or by the overland route;

(2.) Comparative incidence of charges, e.g., transit li-kin and blackmail (an uncertain quantity) on the one side, and the Tengyueh customs, plus re-entry customs, plus Burmah transit dues on the other side; and

(3.) Comparative risk by the two routes. Here Burmah will always have a great advantage, per contra, the pacification of Kwangsi would tend to divert the opium from the Burmah route.

If the matter is settled on the general principles which I suggest, Burmah would certainly get the transit of all the Yungchaung and Shunning Prefectures crop, and a large share of the Hsiakuan market as well.

In conclusion, I would point out that it is by no means likely that the Chinese officials will consent very quickly and without pressure to these proposals. Many of them would be opposed to anything which tends to encourage trade, while most of them care far more for perquisites than for revenue. The deciding consideration seems to be that, as opium transport seems to be the only way which we have of increasing our influence in West Yünnan without incurring a heavy expenditure, it would be worth while to bring such pressure to bear on the Chinese Government, specially as that Government will benefit as much as we shall under it.

Before the Government of India has given its final decision no action would, of course, be taken towards pressing the matter on the attention of the Chinese officials; further, as the foreign Customs and several other Departments of the Chinese Administration are affected, the arrangements would have to be negotiated by His Majesty's Minister.

The proposals which I have submitted must, therefore, be taken merely as local suggestions, subject to the approval of Sir Ernest Satow.

(Signed) G. LITTON,

His Majesty's Consul, Tengyueh.

November 15, 1904.

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