CO129-360 - Public Offices - 1909 — Page 613

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[This Document is the Property of His Britannic Majesty's Government.]

608

C.O.

4

Your Highness states that the proposal of the Board of Finance to collect the new tax is intended to be a prohibitive measure for the purpose of reducing the number of persons purchasing foreign or native opium. The steps taken by His Majesty's Government to limit the Indian export are, in accordance with the proposals of the Chinese Government, designed to extinguish the trade from India in ten years, so that it is unnecessary for China to adopt any prohibitive measures in respect of Indian opium. What is necessary is that China should diminish the cultivation and consump- tion of native opium in such a way as to justify the continued progressive diminution of the Indian imports. If the Chinese Government desire to use taxation for this purpose, it must be remembered that China's powers of taxation are regulated by existing Treaties, which can only be modified by mutual consent.

His Majesty's Government have given many and signal proofs of their desire to assist China in the present movement against the evils of opium, but it is essential that whatever is done should be accomplished legally, and I can assure your Highness that the taxation proposed by the Board of Finance cannot be enforced in Treaty ports without a serious interference with the Treaty rights of British subjects.

I avail, &c.

(Signed) J. N. JORDAN.

CHINA TRADE.

CONFIDENTIAL.

[5667]

Sir,

No. 1.

8857

[February 11. .

RECR SECTION 4REG 12 MAR 09,

India Office to Foreign Office.--(Received February 11.)

India Office, February 10, 1909. IN reply to your letter dated the 1st instant, on the subject of the Shanghae Opium Commission, I am directed by the Secretary of State for India to say that he is somewhat doubtful whether the proposed reply will satisfy the American Ambassador, and to suggest that the reply might be to the effect that Bishop Brent's information was incorrect, and that no such assurance had been given by the Chinese Foreign Office to the British Minister, though that Office had stated that the Chinese Government was perfectly satisfied with the arrangement, and had no intention of departing in any way from it, and would instruct the Chinese Commissioners to this effect.

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[2144 1-2]

I am, &c.

(Signed)

A. GODLEY,